By Rebecca Picciotto | Wall Street Journal
Modular housing development has long been a fringe part of the U.S. market, primarily limited to lower-budget or emergency housing. Now, the country’s largest apartment operator is trying to change that.
Greystar Real Estate Partners on Monday is opening a six-building modular apartment complex, complete with a gym, amphitheater and bocce courts. It is Greystar’s first U.S. project assembled using this alternative construction method, aiming to combat the chronic delays of traditional developments.
The new complex called “Ltd. Findlay” is located in Coraopolis, Pa., about 16 miles west of Pittsburgh. It is offering leases for 312 apartments, making it one of the largest multifamily modular projects in the U.S.
Ltd. Findlay is the first property developed at Greystar’s modular factory in Knox, Pa. The developer has six more modular projects in its U.S. pipeline that will also be built at the Knox site.
Unlike conventional on-site construction, modular homes are assembled in a factory, transported to the final building site and then stacked on top of each other like jumbo Lego blocks. Proponents say this type of building can be completed faster using fewer workers and with materials that can be purchased at a bulk discount, which can reduce overall costs.
Even so, modular remains only a small portion of the overall construction market, reflecting a number of challenges from the cost of transporting pieces to difficulties with financing and regulatory approval.
