Modular Construction is Finally Being Recognized as a Solution to the Housing Shortage

In the last decade, the number of residential construction workers has decreased by over 20%. Evidence of this decline is apparent in the housing shortage plaguing several U.S. cities and the lengthier construction schedules for new housing projects. Labor costs have risen steadily in the last few years as well.
We need more affordable housing options, and we needed them yesterday.Modular construction, with its highly accurate schedules and cost estimates, is probably the most effective option for combatting the housing shortage.

New York City issues first modular housing RFP

The New York City Department of Housing Preservation and Development (HPD) released an RFP (Request for Proposals) for affordable housing this year.While an affordable housing RFP isn’t uncommon for the city, what caught the attention of the building industry was the specificationthat the new mixed-use building be modular.

The department decided to explore modular options last year and requested information on modular housing for low-income tenants earlier this year.

What it means

Modular construction has long been stereotyped as a lower-quality alternative construction method. A pervasive myth that’s been tough for the industry to shake. The exploration of modular solutions by a major U.S. city could ignite a trend and finally give modular the recognition it deserves as a viable building alternative.

The initial request for information by HPD garnered 38 responses, which also indicates the market is ready. Modular companies are ready and willing to respond, and they’re eager to start discussions on development solutions.

Bids for the project are due September 10th.