CASE STUDY: ESSENTIAL HOUSING—MODULAR HOUSING SOLUTIONS + NETHERLANDS ESSENTIAL HOUSING VENTURE 1
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US: After three years of focused development, Greystar launched our US Essential Housing Strategy specifically designed to deliver housing in the 70-90% AMI (Area Median Income) range for nurses, teachers, first responders, and other essential occupations. Our essential housing communities offer high-quality construction comparable to market-rate properties at a more affordable price point. These communities are efficiently designed with a focus on delivering high-quality, newly built rental product at a specific price point that targets the deepest demand pool currently underserved by existing offerings in the market. More specifically, the rents target residents that currently make 70-90% of area median income. Together with leveraging our scale as the largest operator of rental residential, we are able to deliver market-rate properties at a more affordable price point without compromising resident experience or service quality. Modern Living Solutions (MLS), Greystar's owned modular construction platform, is central to our essential housing strategy. This vertically integrated development approach allows Greystar to control the entire construction process, delivering units up to 50% faster than traditional construction with superior quality control. This approach also delivers substantial sustainability improvements, such as using 75% recycled steel, delivering 25-35% reduced embodied carbon compared to traditional construction. Once completed, Greystar communities achieve a 35-45% reduction in operational emissions through high-efficiency HVAC systems, solar-ready design, and smart irrigation. Beyond supporting our Essential Housing Strategy, the MLS factory in Knox, PA has also become an employer of choice in the community. Our facility offers wages nearly double the local average and provides comprehensive benefits matching or exceeding union standards. Greystar has invested in the workforce, including state-of-the-art safety features, skills training and workforce development opportunities, and a planned on-site daycare facility.
Netherlands: Rising housing prices have created a gap for middle-income earners, with this challenge particularly affecting essential workers such as teachers, nurses, and firefighters who are critical to the social infrastructure of Dutch cities but are increasingly unable to afford housing in the urban centers where they work. Recognizing this challenge, Greystar partnered with APG, a Dutch pension fund, to develop a strategy specifically targeting this underserved segment. Our Netherlands Essential Housing Venture delivers affordability through strategic design and operational efficiencies. We've prioritized compact, space-efficient unit layouts that reduce construction costs per residence while maintaining high quality standards. By incorporating shared amenities (rooftops, cooking studios, lounges, gyms) as extensions of private living spaces, we maximize resident value while minimizing individual unit size requirements. Our construction approach employs partial modular methods and extensive prefabrication, which accelerates build timelines and reduces overall development costs that we pass on to residents. The venture also incorporates sustainability features that generate long-term cost savings. Our developments are fully electric with geothermal heat sources and solar panels, significantly reducing utility expenses for residents. We purchase 100% green energy for remaining power needs and pursue BREEAM Excellent certification and A+++ energy efficiency ratings, which lower operational costs over time. The Netherlands Essential Housing Venture aims to deliver 4,600 affordable and sustainable homes by 2028, benefiting approximately 10,000 residents. We closed on our first two projects for this venture in 2023, representing approximately 1,200- 1,300 units currently under construction. Both of these initial projects are planned to achieve BREEAM Excellent certification and A+++ energy efficiency ratings, with systems like geothermal heat pump capacity to meet these ambitious targets.
As the largest developer, owner, and manager of multifamily properties globally, we have developed tailored essential housing solutions for our US and Dutch markets. Through innovative construction methods, operational efficiencies, technology, and sustainability initiatives, we aim to increase housing access to and availability of housing for key essential workers.
1 These examples are for illustrative purposes only. It should not be expected that Greystar will always implement similar sustainability processes or that comparable results will consistently be obtained.
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