How Modular Components Are Redefining Multifamily Housing
As the economy has stabilized in the past few years, the high-end multifamily housing market has experienced strong growth. Meanwhile, however, a latent demand for affordability has emerged as an untapped market that’s been underserved for years.
Increasingly, developers are looking to affordable projects, which are more appealing to lenders when they reach the cap on the high-density/high-rent projects that had been ruling many markets. The balance between high-rent and more-affordable apartments is also affected by land costs, construction and labor costs, and development speed.
Cost-consciousness is increasingly important as conventional construction costs remain steady despite the industry slowdown. In fact, contractors reviewing work over the past several years have seen construction costs go up on multifamily construction by about $10 per square foot per year.