Modular Homes And Alternative Construction Methods Are Fast Tracked Due To Extreme Weather Events, Rebuilding Costs And Limited Insurance Coverage

Homeowners whose properties have been destroyed by extreme weather-related incidents such as floods and fires are getting a rude awakening when they approach their insurance companies to pay for rebuilding. Their policies are woefully inadequate, requiring the owners to cover a large portion of the costs.

That's where modular housing comes in. Prefabricated houses, constructed remotely and assembled onsite, are saving homeowners hundreds of thousands of dollars in rebuilding costs, according to The Wall Street Journal.

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From The Fray To The Forefront

Along with 3-D printing, pre-fab homes have often been on the fringes of the construction industry. However, rising construction costs, technology, and tariffs are changing that. Multiple extreme weather-related catastrophes have brought the modular housing conversation to the forefront when discussing rebuilding efforts.

"Homeowners in a moment of crisis want to try something different," Jason Ballard, chief executive officer of 3D-printed home builder ICON, told the Journal. Icon was recently in the news when it announced plans to build 100 new homes in Georgetown, just outside Austin, Texas.

Natural Disasters Have Been A Turning Point

Modular builder Samara is helping low-income victims of the Los Angeles fires replace lost housing by working with billionaire developer Rick Caruso's rebuilding nonprofit, Steadfast LA, the Journal reports, while the Los Angeles Mayor's office is exploring alternative building methods with multiple builders. 

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Although the construction industry has thus far maintained a largely traditional approach to building, necessity has proven to be the mother of invention. With the dire need for housing in the aftermath of natural disasters, alternative methods are seen as a viable solution.

"Disasters are actually going to be the turning point," Vikas Enti, CEO of Reframe Systems, told the Journal about the embrace of pre-fab housing. "That's what we're betting on."

Artificial Intelligence And Robotics Are Aiding Construction

Artificial intelligence is also fueling the shift toward non-traditional construction methods, particularly through the use of robotics in off-site construction. Promise Robots is one such company that incorporates AI architecture and constructs individual housing components, such as framing panels and joists, which are then assembled onsite. 

In Canada, Intelligent City uses robotics to assemble factory-built housing. "The more standardized things are, the easier they are to mass produce — and the more custom things are, the slower you are in production," Intelligent City President Oliver David Krieg told Canada's National Observer. "You have to find a middle ground, and that's where automation comes in; that's where robots come in," he added.

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Although it might seem like an oxymoron, the mass timber used in robotic construction is fire-safe, as it chars like a log rather than igniting into flames. It can reportedly reduce greenhouse gas emissions by 13% to 26%, according to the Environmental and Energy Study Institute.

Only Cost-Effective At A Major Scale

Although it's possible to buy prefabricated tiny homes online and have them shipped to your location, there is still skepticism about whether they can replace conventionally built homes and fill entire neighborhoods. Home builder Williams Rebuild plans to construct between 120 and 150 homes annually for victims of the Los Angeles fires. 

"If not at major scale, it definitely won't be cheaper," Dan Faina, the company's president, told the Journal. "I think the adoption rate is going to be substantially less than the excitement that's going behind it."

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