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
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,
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
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.
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.
14 New Garden Villages
These new Garden Villages are designated for between 1,500 and 10,000 new homes each.
UK Government Support
Deputy Mayor for Housing James Murray recently said
Modular Construction was "one part of the answer" to the housing crisis.
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.
House Of Commons
New Housing Design
30 Aug 2017
House of Commons
Affordable Housing Shortage
Government New Homes
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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