Affordable Housing- A Global Issue
MBI was recently asked to participate in an international conference organized by Hong Kong University and hosted by the Construction Industry Council of Hong Kong. The conference centered around Hong Kong’s planned use of “Modular Integrated Construction” (MIC) to address their housing issues.
Hong Kong has one of the highest development costs in the world, coupled with low land availability, low skilled labor availability, and a large population. Hong Kong is one of the most densely populated countries in the world (ranking fourth behind Singapore) with over 17,348 people per square mile. For comparison, the US ranks 188th with 86 people per square mile and Canada ranks 235th with 10 people per square mile. As a result, Hong Kong ranks as the second most expensive area globally for construction development, behind only New York City.
Hong Kong has virtually no modular industry today, yet government officials are considering steel modular construction for high-rise buildings to house residents. This is not unprecedented as several presentations during the conference documented progress in other parts of the world. For example, Singapore had no modular industry five years ago, and today four modular public housing projects, each topping 30 stories, have been completed. Five years ago, Australia’s modular industry largely consisted of relocatable buildings and workforce housing. Hickory Group has completed a 43-story building, with a 44-story building about to be complete. While more of a panelized system, this progress towards alternative construction techniques is stunning.
In the U.K. it is estimated that new housing construction needs to double to reach the government’s goal of 300,000 new units annually by the middle of the next decade. The U.K. modular market is much more mature than most other regions, with tall modular structures dating back more than a decade. MBI organized a tour in 2008 to visit U.K. factories as well as a 17-story and 24-story modular student housing projects. Today, 20+ story modular structures are occurring with much more regularity in the U.K.
While there are obviously many differences in overseas markets, there were some striking similarities.
Key Differences
- Hong Kong, Singapore, and the U.K. are smaller geographic areas with limited land availability. As a result, these regions have been forced to adopt high rise construction years ago because they have nowhere to go but “up.”
- Hong Kong, Singapore, U.K., and Australian markets are largely being driven by government agencies to address housing needs.
- There is no modular market whatsoever in Hong Kong now, so there are no preconceived notions about its limitations
Similarities
- Extremely high housing costs
- Low or limited construction labor availability
- Lack of understanding of modular construction from code officials and policy makers.
This article originally appeared in the Modular Advantage Magazine - Third Quarter 2018 released in September 2018.
More from Modular Advantage
DORÇE Navigates Mountainous Terrain, Extreme Weather to Help Rebuild Türkiye
The February 6 earthquakes in 2023 were enormous. In response, DORÇE moved quickly, obtaining a government bid to help create housing and multipurpose structures—both temporary and permanent—for earthquake victims and laborers hired for reconstruction efforts.
Modern Desert Oasis: Building Reset Hotel the Modular Way
While the off-site construction part of the Reset Hotel project has been carefully controlled and with every necessity close at hand at BECC Modular’s factory in Ontario, Canada, the remote location of the project site has created additional challenges for the on site portion of the build.
Revisiting Yellowstone Canyon Village—a Groundbreaking Modular Construction Feat—Ten Years On
With such a short building period due to impending cold, it made the most sense for park developer Xanterra to pursue modular. Yellowstone’s high visitor traffic also required some odd transportation scheduling, as traffic from the West Yellowstone entrance determined the times when trucks could unload modules. Guerdon was up to the challenge.
Built for Brutal Cold, This Modular Office Building Shines
Houlton, the county seat of Aroostook County, Maine, is a small town with a population of about 6,000 residents. Situated along the border between the U.S. and Canada, what the town is most known for is bitterly cold winters. When the U.S. Border Patrol needed new office space, a modular building approach from Modular Genius offered the perfect solution.
Panel Replacement Adds Years of Life to Navy Vessel
Panel Built, Inc., recently replaced all the wall and roof panels on a two-story US Navy barge deck house that the company had originally installed 30 years ago, giving the vessel new life. Now, the commanding officer of the unit that uses the barge said the difference between the condition and appearance from when the barge left their facility to when the project was complete was beyond his expectations of what was possible.
True Modular Building Seeks to Revolutionize Housing. It’s Next Stop: MBI’s World of Modular Europe
True Modular Building (TMB) specializes in crafting attainable, eco-friendly, and comfortable build-to-rent (BTR) housing with modern designs and customizable features, ensuring that residents feel at home both today and tomorrow.
From Toronto to Suriname: A Global Modular Building Story
When I AM Gold – a Canadian gold mining operation based in Toronto, Ontario – wanted to expand its mining operations in Suriname, it knew it would also need to expand its infrastructure. More specifically, they needed to build a mechanical services compound that would allow their local crews to maintain and equipment critical to their mining operations. They also knew that it would be a challenge.
There Were a “Sea of Challenges” for this Modular, Island Development
Question: Can modular construction be used to build a series of affordable, unique housing buildings, all styled to look like they were built in 1845, on an
island that caters to the wealthy? The answer is, of course, yes, but how the
team at Signature Building Systems and KOH Architecture got there is quite a story.
America’s Construction Economy: A Race Against Time
If the economy has been able to handle higher interest rates thus far, undoubtedly it will be able to manage the lower interest rates to come. But many economists are pointing out that the Federal Reserve may already be too late to the game. While they gradually reduce interest rates, the U.S. economy could quickly decelerate, at least based on theoretical grounds if not on the most recent data releases, culminating in that long-predicted recession. Only time will tell.
Top Five Benefits of Modular Office Space
Modular office spaces are transforming how businesses think about their work environments. These innovative structures offer a mix of flexibility, efficiency, and sustainability, making them a smart choice for companies looking to gain an advantage.