Greystar Pioneers Modular Housing to Transform U.S. Real Estate Landscape

Greystar unveils its first U.S. modular apartment complex, Ltd. Findlay, aiming to revolutionize housing with faster builds and reduced costs amid a housing crisis.

In the U.S. real estate market, modular housing has historically had a reputation as a niche realm, often linked to affordable or temporary housing solutions.

However, Greystar Real Estate Partners, the nation’s largest apartment operator, is set on changing that narrative.

Greystar’s Modular Initiative

Recently, Greystar celebrated the opening of “Ltd. Findlay,” its first modular apartment community in the United States.

Located in Coraopolis, Pennsylvania—about 16 miles from Pittsburgh—this complex consists of six buildings and features amenities like a fitness center, an amphitheater, and bocce courts.

This ambitious project aims to tackle the frequent delays that plague traditional construction.

The Ltd. Findlay complex boasts 312 rental units, placing it among the largest modular multifamily developments in the country.

Crafted at Greystar’s modular factory in Knox, Pennsylvania, the company currently has six other modular projects in its pipeline.

Advantages of Modular Construction

Unlike traditional onsite construction, which can be time-consuming, modular homes are built in a factory setting.

These prefabricated units are then shipped to the location for assembly, resembling a giant puzzle.

Proponents of this method argue that it can significantly speed up project timelines and reduce labor costs through bulk material acquisition.

Despite the potential benefits, modular construction still represents a relatively small slice of the overall market.

Challenges such as transportation expenses and financing obstacles continue to hinder its growth.

Yet there’s a slow but steady increase in the adoption of modular practices.

With a shrinking construction labor force and rising project costs, the efficiency that modular construction offers is gaining traction among developers.

According to data from the Modular Building Institute, the annual market share for modular construction tripled from 2015 to 2023, reaching 6.6%.

Future Outlook for Modular Housing

Major developers like Related and Amherst are now exploring modular options in the U.S., while brands like Marriott have embraced this approach for their new hotel builds.

Looking ahead, global revenues from modular construction could soar to $1.1 trillion by 2040, a substantial rise from $180 billion in 2022, as estimated by McKinsey.

A senior partner at McKinsey, who specializes in engineering and construction strategy, notes that increasing material and labor costs make modular construction a more attractive alternative to conventional methods.

Based in Charleston, South Carolina, Greystar manages over 954,000 rental units throughout North America.

The company’s journey into modular construction began in the U.K., where they found success and sought to replicate that experience in the U.S., as shared by their managing director for modular operations.

Greystar’s venture into this sector was initiated by acquiring a Pennsylvania manufacturing facility in 2020, paving the way for their U.S. modular project, now known as Modern Living Solutions.

Remarkably, Ltd. Findlay was completed in approximately 40% less time than traditional builds and required just one-third of the labor typically needed for similar projects.

Additionally, it produced about 90% less waste.

A 2020 study by McGraw Hill Construction found that many developers using modular techniques reported cost savings of about 5% to 10%.

Ultimately, the overall cost for developing Ltd. Findlay was around 10% lower than a comparable multifamily project in Pittsburgh.

The apartment units, ranging from one to three bedrooms, offer varying sizes from 662 to 1,373 square feet.

Industry insiders point to one of the main hurdles for broader adoption of modular housing: the entrenched traditional practices of the construction industry.

Many lenders remain cautious about financing modular projects due to their unfamiliarity with this innovative approach.

Despite the initial barriers, optimism for the future of modular housing is growing.

Experts agree that, regardless of any regulatory changes, expanding modular development is increasingly vital to addressing the ongoing housing crisis in the United States.

The industry is shifting its perspective—modular construction is no longer seen as a mere alternative, but as a necessity.

Source: Realtor.com