Modern Methods of Construction (MMC) includes modular housing, with homes substantially or even completely built in factories, then transported to a final assembly point and integrated with community services.
A recent CNBC article written by Vicky McKeever kicks off expectations by describing the anticipated prize:
“More energy-efficient homes, less materials waste and lower carbon emissions in the construction process are among the sustainable advantages of modular housing.”
Imaginative ways to employ MMC have achieved success in a number of countries such as Sweden and Japan. Oddly, though the housing economies of MMC are touted in the United Kingdom, as well as in the United States, those two countries have been remarkably unsuccessful so far in exploiting MMC’s benefits.
So what’s holding back the US and the UK? Over the last year, we’ve been fielding reports of disappointing results, both material and financial, blamed on a variety of reasons1. Read more from Vicky McKeever at CNBC: Modular homes were hailed as a solution to housing crises. But the sector is now struggling to scale
A recent report out of the UK pointed a finger at a favourite whipping boy: government incentives to the modular housing industry have been sloppy and wasteful. Read more at the Construction Enquirer: Government wasted millions on failed MMC housing push
There have been other suggestions that might explain why MMC has been less than successful in some countries and regions. One possibility is developers’ reluctance to abandon conventional construction methods, which are slow, expensive, and profitable. Time will tell.
New Zealand has recently embraced the potential of MMC. Can it take economic advantage of the exact opposite of on-site, stick built homes to increase housing supply?
New Zealand has hooked up with a new giant in the modular housing industry. China is building modular housing and shipping it thousands of kilometres to New Zealand.
With factory-built housing techniques, new materials and technologies become possible. China evolved corrugated metal foundations and frames for its modular homes. The finished housing reminds some disgruntled Kiwis of shipping containers. It’s a suitable sneer, but only until the shipping braces come off and the final panelling is added, which substantially changes the look of the homes.
The criticism, if it can be called that, also recalls how the modular housing finds its way to a suburb of Aukland, New Zealand. The following article includes a video of modular construction in China. Read more in The New Zealand Herald: Surprise at new Chinese container-style Kāinga Ora apartments for Sandringham.
Footnotes
- A study by researchers at University of Cambridge documented factors affecting modular housing businesses in the UK. It is posted at Thinkhouse: Deploying modular housing in the UK: exploring the benefits and risks for the housebuilding industry
