Writing · Real Estate (general)
The Promise and Peril of Prefab Apartments
Factory-built apartments sound great in theory—faster timelines, lower costs, and assembly-line precision. But reality keeps proving otherwise. Connect Homes just collapsed, leaving buyers stranded and millions lost. Katerra? Gone. Veev? Same story. Even well-funded modular startups struggle to stay afloat.
I’ve seen developers try this approach in multifamily housing, and while the idea is appealing, the execution often falls apart—sometimes literally. Moving and installing prefab units introduces a whole new set of risks: structural integrity, site conditions, and the dreaded construction defects. Precision in the factory doesn’t mean much if the modules shift, settle, or misalign after transport.
At some point, you have to ask: Are we solving construction’s biggest problems or just repackaging them in a shipping container?
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