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As we mark World Cities Day, it is a good opportunity for us to reflect on the challenges and opportunities that come with rapid urbanization. With over half of the world's population now residing in urban areas, inequality has grown along with urbanization's rapid pace. According to Oxfam, a global poverty-fighting NGO, in Africa and South America—two of the regions most affected—the wealthiest 1% has captured nearly two-thirds of all new wealth created since 2020, amounting to $42 trillion. If left unchecked, this disparity could severely hinder the development of a nation's citizens, who drive its industries and competitive advantages. However, emerging technologies in the housing sector may offer a solution. Prefabricated (prefab) housing units provide a quick and cost-effective way to meet the growing demand in high-density housing areas. Additionally, prefab housing is more environmentally friendly; a study from the International Journal of Industrialized Construction found that prefab construction produces 65% less carbon emissions compared to traditional methods.
THE GREENER CONSTRUCTION
Modular construction—the process of producing standardized components of a structure in an off-site factory and then assembling them later on-site—is responsible for the construction efficiency of prefab housing. This type of construction mitigates the environmental impact of the construction sector, which currently stands as the largest emitter of greenhouse gases, contributing to 37% of global emissions. With projections indicating a predominantly urbanized world population by 2050, the environmental consequences of increased construction activities are alarming. Prefab housing’s construction addresses these concerns by accelerating the building process through simultaneous manufacturing and on-site preparation, reducing construction time by up to 50% compared to traditional methods. This not only supports efficient urban development but also expedites the completion of renewable building projects. All in all, this revolutionary construction method’s environmental advantages are notable, with controlled factory conditions minimizing waste, resulting—on top of 65% less emission—in up to 90% less waste compared to conventional construction.
ADVANTAGES, CHALLENGES, AND OUTLOOKS
Prefab homes’ construction presents distinct advantages, such as streamlined processes, bulk material purchasing, and reduced labor costs, contributing to cost-effectiveness. The scalability of this kind of accommodation also allows for adaptable solutions to diverse housing demands, making it a potential mass-production solution to regions in need. However, challenges impede widespread adoption, including skepticism regarding the quality and durability of prefab homes. Moreover, in some areas, such as Southeast Asia, the shortage of skilled labor and the perception that conventional construction remains cheaper hinder the acceptance of prefabs. An element that also needs to be taken into account is the perspective of the workers involved in building these homes. From a worker perspective, specialization trends are emerging in modular construction, shifting job assignments toward more narrow roles. Transformative business models present challenges that require workers to adapt to new roles and skills in the evolving landscape of modular construction, highlighting the need for continuous training and skill development in the industry.
Prefab homes hold GREAT promise in addressing urban housing challenges sustainably. Nonetheless, to unlock their full potential, concerted efforts in education, policy development, and addressing concerns related to quality and worker perspectives are crucial. By overcoming these existing barriers, prefab housing can shape a cost-effective and environmentally conscious future for urban living.
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