The potential of prefabricated technologies for rental housing

Abstract

The aim of the paper is to highlight the benefits of lean prefabricated and modular construction for the construction of rental housing by considering financial and time savings. In the current turbulent development of prices of building materials as well as banking products and availability of housing, Slovakia is facing significant problems with housing shortage, which is also addressed by foreign countries in the form of rental housing. According to Eurostat data for 2021, the ratio of rental housing in Slovakia to the total number of dwellings is the second lowest in the European Union at 7.1%, while this is mainly rental housing in properties owned by private landlords. The Act on State Support for Rental Housing sets maximum rent levels for individual regions of Slovakia, which directly affect the costs associated with construction. The paper shows that there is great potential of volumetric modular construction to solve increasing demand for rental housing. This article analyses the current state of adoption of modular construction abroad and in Slovakia by the good practice review and literature research resources review.