GLOBAL HOUSING CRISIS

 

According to the UN, by 2030, about 3 billion people – about 40 percent of the world’s population – will be in need of proper housing.

 

This translates into the need to complete almost 100,000 housing units per day from now until 2030.

 

Additionally, homeowners and potential homeowners face many challenges, including affordable housing and the need for energy efficiency

due to rising energy costs.

US HOUSING CRISIS

 

The US is in the worst housing inventory shortage of 20 years.

 

In 2016 there already was a shortage of more than 7 million

affordable and available rental apartments.

 

 

CALIFORNIA SHORT 3.4 MILLION HOMES

 

California is suffering from the worst housing crisis in the country and in its history.

 

With the highest median prices in the country,

the tiny part of housing that is available is all over $1 million.

 

With the new Zero Carbon 2018 and Zero Net Energy regulations

in California new housing will be even rarer.

 

More than two thirds of markets are experiencing a severe shortage

of housing compared to just one year ago.

+

     Decrease of available housing in just 12 months Dec 2016 - Dec 2017

 

     San Jose            40.6%     San Francisco   27.1%

     Colorado           25.8%     Nevada              24.1%

     Indiana              22.2%     Washington       20.1%

     Ohio                  19.4%     Boston              15.5%

     New York          15.4%     Georgia             14.6%

 

 

The construction industry is at full capacity

Experiencing huge labor shortages.

 

More than 1.5 million residential construction workers

left the industry since the last recession.

 

Spending on new projects peaking at $1 trillion in November 2017

 

 

It is not physically or economically possible

to increase the supply in housing

without using Modular Mass Manufacturing.

UK HOUSING CRISIS

 

Shortage of 3.91 million new homes

mostly affordable

 

In 2015 just 142,890 homes were built.

 

The Government has pledged to the public to build

one million new homes by 2020

and 1.5 million by 2022.

 

The London shortage is conservatively estimated at 40,000 - 50,000 units per year.

 

Most of the shortage is in low cost & affordable homes.

 

Most developers and house builders do not operate in this market:

 

   -  Costs are prohibitive             -  Construction is slow

   -  Investment is high                 -  Profits are low

   -  Return on Equity is Very Low

 

GERMAN HOUSING CRISIS

 

Germany needs 400,000 new homes every year

from now to 2020.

 

To reduce the deficit of

Two Million homes.

 

Construction costs have increased 45% in the last 15 years

despite cost saving measures.

 

New Technology is needed to produce homes more efficiently.

 

Despite many efforts to increase efficiency between 2000 and 2016, the construction costs have increased by about 45%.

 

16% of the costs increase is due to

more restrictive energy saving regulations (since 2002).

 

PRIVATE RENTED SCHEMES (PRS)

 

Private Rented Schemes are mainly built by Pension Companies,

Insurance Companies,

Institutional Investors and Family Offices.

 

They are "Build to Rent" developments on a large scale.

 

Many of the above only look at schemes of 500 and more units.

 

 

 UK PRS market reached £1.29 Trillion

Surpassing the UK mortgage owned occupier market 2017.

 

They are very Cost and Build Time sensitive -

and the largest users of modular construction.

 

The high level of Repeatability, Speed and No Cost Over Runs,

through using modules

suits their business model perfectly.

 

This sector is undergoing massive growth with Sovereign Wealth Funds and Institutional Investors from the USA, Canada, China, Japan, Korea,

Malaysia, the Middle East, Northern Europe investing heavily.

 

55% growth in the last five years alone

 

 

 

NEW GARDEN CITIES & TOWNS

 

The UK Government has approved the creation of new

Garden Cities and Garden Towns.

 

Garden Cities create between 15,000 and 45,000 new homes each

and

Garden Towns between 3,000 and 10,000 new homes each.

 

 

Perfect Match for Modular

 

The style of construction, cost and planning restrictions imposed make these a perfect match for modular construction.

 

    • Government Requirements for these to be low priced
    • Additional Requirements for Social Housing on site - lower priced
    • Fast Build Time / Delivery required
    • Only Low Rise 2-3 floor houses and
    • Up to 4 floor apartments allowed
    • Low Density
    • Eco energy efficient and Low Carbon footprint specifications

 

Modular is the only technology capable of meeting all the

Government requirements for Garden Developments

- particularly Cost and Speed.

 

 

There are restrictions in place as to eco credentials and sustainability

on some of the schemes also.

 

For example Bicester North is designated an eco town.

 

Our modular technologies are perfectly suited to this.

 

Very high thermal insulation values

Very low carbon footprint.

 

Additionally it gives an air tight seal - not possible on conventional construction.

 

 

Garden Cities

 

    • Bicester                15,000 new homes
    • Black Counties      45,000 new homes
                  • (Dudley, Sandwell, Walsall and Wolverhampton)
                  • part of plan to build 85,000 new homes
    • Ebbsfleet, Kent      22,000 new homes

 

 

Garden Towns

 

    • Aylesbury
    • Basingstoke
    • Buckinghamshire (Aylesbury area)
    • Cardiff                         £2bn project incl 6,000 new homes
    • Didcot
    • Essex-Hertfordshire border (Harlow and Gilston)
    • North Northamptonshire
    • Somerset / Taunton

 

 

14 New Garden Villages

 

These new Garden Villages are designated for between 1,500 and 10,000 new homes each.

 

    • Long Marston in Stratford-upon-Avon
    • Oxfordshire Cotswolds, West Oxfordshire
    • Deenethorpe in Northamptonshire
    • Culm in Devon
    • Welborne in Hampshire              6,000 homes
    • West Carclaze in Cornwall
    • Dunton Hills in Essex
    • Spitalgate Heath in Lincolnshire
    • Halsnead in Merseyside
    • Longcross in Surrey
    • Bailrigg in Lancaster
    • Infinity Garden Village in Derbyshire
    • St Cuthberts in Cumbria   10,000 homes
    • Handforth / North Cheshire

 

 

 

UK Government Support

 

Deputy Mayor for Housing James Murray recently said

Modular Construction was "one part of the answer" to the housing crisis.

 

 

Institutional Investment

 

Legal and General, Aviva and Prudential amongst other pension funds have announced they will help finance the new Garden Towns and Cities.

 

 

The Farmer Review "Modernise Or Die"

 

- highlights the need to pre-manufacture more of our homes.

 

It cites the low productivity of conventional construction as a major problem.

 

Along with no positive change in building methodologies

for the last one hundred years.

 

“The low cost predictability is not just a problem

for clients but is also one for industry itself”

 

The Industry is strongly criticized for not making any large investments

in new technologies or permanent workforces.

 

A further problem is the subcontracting of 90-100% of the construction.

 

This give a disjointed end product.

 

News Articles

Government Website

Ebbsfleet Garden City

22,000 new homes

Black Country Garden City

45,000 new homes

Bicester Garden City

15,000 new homes

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