Habitat for Humanity® of the Roaring Fork Valley (Habitat) plans to build and operate a 65,000-square-foot modular housing production facility on 10.5 acres of land leased from the City of Rifle. The facility will manufacture modular housing units for Habitat-sponsored projects and for sale to third parties, exclusively for use in “deed-restricted” affordable workforce housing developments in western Colorado.

To support this initiative, Habitat engaged Gruen Gruen + Associates (GG+A) to conduct a market analysis. The study estimated the potential demand for deed-restricted affordable housing targeted at income-eligible workforce households. Specifically, the analysis identified the primary and secondary geographic markets the plant is likely to serve, evaluated the potential demand for modular workforce housing in these areas, assessed competitive supply sources, and projected the annual sales volume the plant could achieve.

To achieve the market study objectives, GG+A also undertook the following steps:

  • Stakeholder Interviews: Conducted interviews with five prospective buyers of modular housing units and a senior representative from the nearest modular housing plant to the proposed facility.
  • Competitor Assessment: Identified other modular housing plants operating in the region.
  • Cost and Feasibility Analysis: Evaluated the economics of traditional “stick-built” housing in the market area, focusing on price points and income levels that the private market may be challenged to serve. Compared the cost advantages of modular housing in areas with limited production builders and labor shortages.
  • Case Studies: Analyzed recent modular housing developments and their share of new housing construction activity in the region.

GG+A synthesized the findings to estimate the number of modular housing units Habitat could sell annually, assuming the quality and pricing meet market expectations. The analysis also highlighted the potential cost and scheduling advantages of modular construction compared to traditional methods.

A comprehensive report was prepared summarizing the methodologies, key findings, conclusions, and recommendations. GG+A also facilitated a workshop with Habitat representatives and its public finance advisers to review the study and its implications.