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Multifamily Development Future in Modular Form

LOS ANGELES—Labor was noted as one of the biggest challenges in construction cost for multifamily development at RealShare Apartments. Panelists discuss one possible solution to the problem—modular construction.

By Natalie Dolce | Updated on October 22, 2015

LOS ANGELES—“Land prices are a highly inflationary environment in cities like L.A. lots of municipalities have added significant fees the last few years. But if you concentrate just on construction costs, the main issue we are having is a labor force issue.” That was according to Don Mackenzie, head of west coast development for UDR Inc.

Mackenzie spoke on the development panel at RealShare Apartments on Thursday morning, an event which drew nearly 2000 attendees to the Westin Bonaventure in Downtown L.A. “There were about 12 million people in the construction trades business in 2006, and in 2010 it came down to about 9 million so there was a big exodus … they couldn’t get a job,” he explained. “Also, their children, who might have come into the trade, did not. … We didn’t have the younger people who could come in at a lower price. So, it continues to be quite a battle.”

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