With today’s climate challenges and ongoing sustainability demands it is important to make urban planning and policy development as environmentally friendly as possible. Nowhere is this more understated than in Los Angeles, which suffers from a major housing crisis on top of reoccurring natural disasters. With rising costs of construction impacting all levels of the commercial real estate industry, prefabrication and modular construction’s ability to save time and money has attracted the attention of many. Particularly, using wood as construction material is an environmentally conscious choice which has led to a solution to meet the needs of population growth and urbanization.
The potential to adopt modular in construction is great, according to a McKinsey & Co. report released in June 2019. The report found that the market value for modular in new real estate construction could reach $130bn in Europe and the U.S. by 2030. It found that some modular projects have accelerated project timelines by 20% to 50%, and some developers have saved 20% in construction costs. While offsite construction is not a new method, the numbers around new development are leading to alternative strategies, and the practice is gaining significant momentum.