Mounting Disasters Begin Taking Alternative Building Methods Mainstream

Modular and 3D-printed construction have struggled to get a firm foothold, but natural disasters like the Los Angeles wildfires are presenting new opportunities, and alternative builders are leaping on new demand.

Disasters in California, Hawaii and the Southeast are spurring growth in both industries as owners of ravaged properties grow increasingly open to alternative rebuilding methods that could save time and money, The Wall Street Journal reported.

More than 100 modular builders entered the Hawaiian market after the 2023 Maui wildfires, and state officials there have commissioned five modular companies to help build 450 temporary housing units.

Meanwhile, Massachusetts-based Reframe Systems is planning to build a robotic, AI-powered microfactory in California 18 months earlier than originally planned to help rebuild after the wildfires, according to the WSJ. Reframe CEO Vikas Enti told the outlet that the company is betting on disasters being the turning point for wider acceptance of factory-built housing.

Modular construction involves constructing modules in a factory before transporting them to the final construction site for assembly, according to trade group the Modular Building Institute. The sector has long dealt with a misconception that its products are of lower quality than traditionally constructed homes. 

Off-site construction has historically been used for emergency or low-cost housing, but its use is diversifying. Multifamily developer and manager Greystar Real Estate Partners opened its first modular apartment complex late last year and has another half dozen in the pipeline. 

Companies are receiving hundreds of calls about nontraditional building in disaster-prone areas, leading them to partner with displaced residents and rebuilding nonprofits, according to the WSJ.

That includes construction using 3D printing, which is seeing more experimentation for housing and other commercial real estate projects. Starbucks and Walmart both opened 3D-printed facilities in the past several months.  

Icon Build, a 3D-printing homebuilder, plans to target disaster-prone areas like California and Florida as it expands from Texas, the WSJ reported. 

“Homeowners in a moment of crisis want to try something different,” Icon CEO Jason Ballard told the WSJ.

But the widespread implementation of alternative construction methods might not happen as quickly as alternative builders would like. 

“People are overselling this technology and the media is buying it,” University of Southern California Professor Lucio Soibelman told Bisnow last month of 3D-printed construction. 

Williams Rebuild plans to build about 150 homes a year in Los Angeles, and it is exploring whether building wall panels off-site could help reduce the amount of materials stored on-site, Williams Rebuild President Daniel Faina told the WSJ. But it won’t be any cheaper if it's not done at a major scale, he said.

“I think the adoption rate is going to be substantially less than the excitement that’s going behind it,” Faina said, according to the WSJ.