A Scalable and Cost-Effective Solution to the U.S. Housing Crisis: A Case Study on Locally Manufactured Modular Multifamily Housing

This case study assesses waste management efficiencies in modular buildings compared to traditional construction methods. We focus on the modular 1-bedroom Model/Z unit by Model Z Modular, LLC. As part of the collaboration between Model Z Modular and the National Renewable Energy Laboratory, we analyzed waste metrics from design through construction, contrasting these findings against conventional stick-built and site-built multifamily buildings. The Model/Z unit is part of a strategic effort to address affordable housing shortages in South Los Angeles, where household income challenges are pronounced. The unit is produced in a state-of-the-art 150,000 sq. ft. modular manufacturing facility located within the city it is serving, and has so far supported the production of over 1,500 affordable housing units. Model/Z units have been used in projects with as many as 195 units, achieving large economies of scale and time. Our analysis demonstrates that modular construction reduces waste compared to traditional methods. This reduction is achieved through precise prefabrication techniques, the implementation of new framing methods, the concentration of workforce expertise, and streamlined logistics, which optimize material use and greatly reduce on-site handling. Additionally, local manufacturing minimizes transportation needs, improving overall project efficiency. The Model/Z unit exemplifies a scalable solution for enhancing housing affordability by optimizing resource utilization and minimizing associated costs. These methods support the delivery of high-quality units at reduced expenses, addressing critical urban housing shortages effectively. This case study underscores Model Z Modular's commitment to producing affordable, quality housing while fostering economic opportunities through job creation and training programs.