A nationwide housing crisis fueled by inflation and low supply continues to burden U.S. cities—especially in California. President Joe Biden recently addressed this issue in his State of the Union speech, announcing a housing tax credit and urging Congress to pass mortgage relief for the middle-class. Last year, Governor Gavin Newsom announced an ambitious statewide goal of reaching 2.5 million new housing units by 2030. While federal and state promises could take years to fulfill, there is a proven solution hiding in plain sight that can efficiently add to our affordable housing stock now: modular construction homes.
Modular construction is a process in which standardized, repeated components of a structure are built in an off-site facility, and then delivered to the site for assembly. This process includes building finishes and, in specific cases, building envelope that includes the walls, windows, roof and foundation.
In California, housing remains unaffordable and unavailable. The median rent in the state has increased 38% since 2000, while median renter household income has only increased by 7%. The Golden State is also home to 30% of the nation’s unhoused population. Solving the nation’s housing crisis will require a comprehensive approach, but there are four reasons why California should increase modular housing construction: it is faster, cheaper, safer and more sustainable than traditional construction. Here are the benefits to modular construction:
Schedule
Modular construction is the fastest method of building housing, capable of erecting a super-structure in weeks rather than months. Our project teams at Suffolk have experienced schedule savings of 20 to 25% on our modular projects. We can go from concrete podium to building top out in under two weeks, depending on the number of units per project.
This accelerated timeline is a result of automation, greater efficiency with materials, and fewer delays from site developments, labor shortages or weather. These expedited timelines allow residents and community members to make use of these crucial spaces sooner. By contrast, according to a UCLA analysis, an apartment building takes an average of four years to build in Los Angeles.
Cost savings
As a builder, our role in the affordable housing crisis is evaluating building typology that can most efficiently meet housing demands. The cost of building housing remains expensive for labor, materials and land.
Modular construction is more cost-effective because fewer workers are needed to complete a project and there are fewer risks factors, such as delayed timelines, that can drive up prices for developers and builders.
Safety
Modules are produced and assembled in controlled, indoor factory-like environments, similar to the way automobiles are built in manufacturing plants. This controlled environment eliminates challenges caused by weather, unorganized jobsites, laborers working at dangerous heights and more. Building the modules in this controlled environment and assembling them on the jobsite can be a safer, more efficient way to build and mitigate risk for workers. According to federal data, California had the second-highest number of fatal workplace injuries in 2022.
Sustainability
Factory-built construction of modules minimizes waste and creates options for reusing excess materials and utilizing renewable materials. Modular construction is more exact than traditional construction methods—reducing the amount of wasted materials on project sites. Further, unused materials can often be used for future projects, as modular construction is often redundant with multiple structures being erected using the same plans and measurements. As mentioned, the factory-like assembly also limits the amount of materials that need to be transported, reducing toxins and pollutants from emissions. Finally, modular construction can use sustainable materials, such as recycled steel and bamboo, that are more environmentally friendly than traditional materials and can help communities achieve their climate goals. because more exact volumes of materials can be ordered using just-in-time delivery methods.
Working with public officials, our teams have proven that modular construction can produce affordable housing units for Californians quickly and effectively. For instance, we recently partnered with Mercy Housing in Los Angeles to complete the 6th and San Julian affordable housing project. Through modular construction, we built 93 one-bedroom units for the community — delivered on time and with significant cost savings. The affordable housing crisis cannot be solved overnight, however, through approaches such as modular construction, we can provide more safe, secure and affordable homes for more Californians.
Jim Stanley is executive vice president and division manager of Los Angeles for Suffolk, one of the largest real estate and construction enterprises in the country. Stanley has more than two decades of experience in construction. He has worked on several projects in Los Angeles, including the 6th Street Place affordable housing project and the Moxy & AC Hotel.
