Greystar launches major U.S. modular apartment project

Greystar Real Estate Partners, the largest apartment operator in the United States, is venturing into modular housing with its new project, Ltd. Findlay. Located in Coraopolis, Pennsylvania, this six-building complex features 312 apartments and amenities such as a gym and amphitheater. This marks Greystar's first U.S. venture using modular construction methods.

Modular homes are built in factories and assembled on-site like Lego blocks, offering potential cost savings through faster construction times and bulk material purchases. "With the cost of materials and labor rising, 'modular emerges as a more viable alternative to traditional construction methods,'" said Jose Luis Blanco from McKinsey.

Despite challenges like transportation costs and regulatory hurdles, modular construction has been gaining traction due to its efficiency benefits amid a shrinking workforce and rising costs. From 2015 to 2023, its market share tripled to 6.6%, according to the Modular Building Institute.

Greystar's Andy Mest highlighted that Ltd. Findlay was built about 40% faster than traditional projects while requiring fewer workers and generating less waste. The project also cost roughly 10% less compared to conventional builds in nearby Pittsburgh.

The company aims to educate lenders on financing modular projects by offering tours of their Knox factory where these units are manufactured. "The biggest barrier is the status quo," stated Tom Hardiman from the Modular Building Institute regarding industry resistance.

As interest grows in modular construction for addressing housing needs, experts like Blanco believe it will become increasingly necessary: “We’ve seen modular as a choice... It’s just a pure necessity.”