Greystar’s Post

America's largest apartment operator, Greystar, just opened its first modular apartment complex -- and it's definitive proof of how an integrated modular approach like ours can deliver multifamily projects significantly faster and cheaper than conventional construction: What: ✅ Greystar's first modular apartment complex, a 312-unit development in Coraopolis, PA ✅ Modular design and modular fabrication at Greystar's Knox, PA factory Results: ✅ 40% faster construction than Greystar's traditionally-built projects ✅ 10% cheaper ✅ 90% less waste ✅ 2/3 less on-site labor required for finish work This integrated modular design, fabrication, and assembly is exactly what the Cloud Apartments platform provides -- with even greater cost savings ( 30!). Who's next? We're excited to partner! Mill Creek Residential Trust LLC Trammel Crow Residential Svcs Wood Partners Hines Related Companies Hillpointe Avalon Alliance Residential Company The Michaels Organization Core Spaces D.R. Horton - Multifamily The Garrett Companies Roers Companies Thompson Thrift SoLa Impact Woodfield Development Willow Bridge Property Company LDG Development, LLC The Bainbridge Companies Advantis Development Northwood Ravin JPI Toll Brothers Fairfield Residential Hawthorne Residential Partners Holland Partner Group OHT Partners, LLC Aventon Companies Evolve Companies cc: Curtis Wong Apoorva Pasricha Tim Connors Matthew Rapa Sara Torrelko #industrializedconstruction #multifamily #realestatedevelopment #modulardevelopment #prefabhomes #offsiteconstruction #innovationinconstruction #affordablehousing #urbandevelopment #workforcehousing #modularhomes

Affordability in creating housing options:

Modular construction seem well suited to recent innovations in on-site construction robotics, since there are fewer pieces and standardized construction processes. Construction is ripe for innovation between the labor challenges and the need for efficiency and cost-reductions on the production end if material costs are going to stay high. See The Freedonia Group construction report catalog for more analysis. See the link in the comments to download our white paper "Addressing Labor Challenges and Driving Growth in the Construction Industry"

Urban centers are buckling under the weight of housing demand. Add rising material costs, an aging workforce and talent scarcity, and the economics of traditional construction become untenable. Greystar is stepping into a new arena with Ltd. Findlay, a six-building modular apartment complex outside Pittsburgh, Pennsylvania. This is a glimpse into how modular construction could transform the way we build, making the process faster, more scalable, and less wasteful. Modular construction replaces the chaotic unpredictability of on-site builds with the precision of factory assembly. It led to Greystar completing Ltd. Findlay 40% faster than a conventional project, turning a slow, chaotic process into one that delivers housing with speed, quality, and predictability. Increasingly present in many residential and nonresidential portfolios, modular’s market share has tripled in less than a decade, and projections show a potential $1.1 trillion global market by 2040. At the heart of modular’s promise lies a new kind of construction ecosystem, one that requires seamless coordination between suppliers, manufacturers, and builders. This demands an unprecedented level of IT/OT convergence, where information technology (IT) systems integrate with operational technology (OT) on the factory floor and in the supply chain. The factory is modular’s engine of efficiency. For developers considering modular, the journey requires an enterprise-wide commitment to ensuring data flows seamlessly between IT, OT, and supply chain teams, as well as workforce training to help employees adapt to new technologies and processes. Most importantly, developers must keep a mindset of continuous improvement, treating modular not as a one-off experiment but as an ongoing evolution in how we design and deliver housing. Gary Fleisher Robert Johnson Jeff Heilman Chris Nicely Jacob Hawes Rick Weston David Sowers Brandon Chinn Aaron Keeler Alyssa Schaedler Brenton Wall Spencer Blodgett Jamey Tutor Jesse Sabia Matthew Stites James F. McClister Paul Reinhardt 🔸 🔸 🔸 #modularconstruction #realestatedevelopment #digitalconstruction #digitalsupplychain #buildingmaterials #factoryautomation #modulatedassembly #modularbuilding

America's largest apartment owner venturing into modular homes highlights a significant shift in the housing industry. Modular construction offers a solution to rising costs and demand for faster, more efficient builds. After years of discussion and numerous failed attempts, advancements in technology and manufacturing may finally make modular housing economically viable. #RealEstate #Construction #HousingInnovation

🏘️ Modular homes: the future of construction? Greystar Real Estate Partners, one of America’s largest apartment owners, is diving headfirst into modular construction, and it’s a move that could shake up the industry. 🚀 This shift promises faster project timelines and potential cost savings—all while addressing the ever-growing demand for affordable housing. As someone who’s passionate about innovation in construction and building practices, this story highlights how modular construction could redefine scalability and efficiency. It's exciting to see such a significant player embrace this approach, and it leaves me wondering: Could this be the tipping point for modular to go mainstream? Check out the article from The Wall Street Journal. https://lnkd.in/e4_UV5Xh #Construction #Innovation #ModularHousing #FutureOfBuilding

Interesting to see one of the largest apartment owner's take a step toward into modular complexes. The rise of modular building and VDC in the AEC industry will be a key opportunity for firms to consider.

Modular #housing development has long been a fringe part of the U.S. market. Now, the country’s largest apartment operator is trying to change that. Greystar is opening a six-building modular apartment complex outside of Pittsburgh, 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. 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. 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. But its use is steadily growing. With the cost of materials and labor rising, “modular emerges as a more viable alternative to traditional construction methods,” said Jose Luis Blanco Alvarez, a senior partner at McKinsey & Company who leads the global #engineering, construction and building-materials practice. 🔗 Read more from Rebecca Picciotto: https://lnkd.in/eFNXhF_i 

🏗️ Three key takeaways on Greystar's modular strategy from the Fifth Wall experts and Andrew Staniforth, CEO of portfolio company Assembly OSM: Fifth Wall Partner Greg Smithies: "In this new political and regulatory environment, we expect the cost of construction in general to increase. This new normal may be the realignment in costs that has long been required to shift the economic balance toward prefab and modular construction." Fifth Wall VP Francesca Whitehead: "Looking at Brexit as a comparison, the number of construction workers since Brexit has dropped by 40 percent. Considering the labor dynamics at play along with the expected immigration policies in the U.S., the industry will be pushed to try new construction methods like modular or prefab. Assembly OSM CEO Andrew Staniforth: "Here’s what’s really interesting. Greystar didn’t just use modular; they built their own modular factory. It’s the perfect example of how new technology needs to align with its customers. Now I'm not saying every developer should open their own facility... but in the early innings of industry adoption, it makes complete sense." #realestate #construction

Given increasing materials costs and a construction labor shortage, I'm not surprised to see Greystar experimenting with modular. Even without changes in policy, which was written for traditional on-site construction, modular is still growing steadily out of necessity. As the article notes, modular's market share has more than 3x'd since 2015. (Fifth Wall LPs Related Companies and Marriott International mentioned in the article as a few major real estate companies getting their feet wet with modular.) I see another opportunity for modular with another trend: single-family rentals and build-to-rent communities. This increasingly popular submarket is an opportunity for prefab and modular housing solutions. Given the more frequent moves associated with SFR, they need to be built with materials that can take a beating and standardized appliances. #modular #realestate