This Philadelphia Inquirer article is behind a paywall, but I can tell you that it speaks to the city's increasing use of modular construction for infill apartment buildings:

Building modularly can save 20% on total construction costs, he said. Projects can be constructed in half the time, and rental revenue comes in sooner. Workers build apartments in pieces in a factory as others lay the foundation. Factory work doesn’t have to pause for inclement weather.

Alterra Property Group has found that modular construction is cost- and time-effective when it builds between 100 and 500 units and between four and six stories. Under that, building on-site is more efficient, Addimando said. Above that, builders can run up against building code restrictions.

Consider this recently completed project, called LVL North:

• 1.5 acre site

• Site acquired in February 2020

• Construction commenced in June 2020 (was it already entitled?)

• Over 500,000 square feet

• 7 storeys

• 410 market-rate apartments

• Two levels of commercial spaces

• Over 300 parking spaces in a two-level below-grade parking structure

• Construction completed in 24 months (it's currently being leased up)

I am impressed by how quickly this was erected. Here in Toronto, it would likely take more than 24 months just to get through the rezoning process. Granted, a site this big in a central location next to transit would also likely beget multiple tall buildings.

But this form and scale of housing seems to be working for Philly. It is allowing the city to both build quickly and to experiment with emerging construction methods.

Bullpen Consulting just released its latest land insights reports for the Greater Toronto Area. For the period of Q2-2022, Ben Myers and the team identified 46 high-density residential land transactions with an average price of $95 per buildable square foot. This is down from $112 pbsf in Q1.

In the core of the city (former City of Toronto), the average price for Q2-2022 was $135 pbsf. In North York it was $103 pbsf. And in Scarborough it was $50 pbsf. Overall land prices are down about 15% from last quarter (though it's important to note that quarterly transactions can represent a relatively small sample size).

We have spoken before about how land prices tend to be fairly sticky in the face of changing cost structures. But what we are seeing right now is a bit of a perfect storm:

• Development charges (here in Toronto) are set to increase by 49%

• Hard costs have seen double digit increases (with some inputs increasing by 30-40%)

• Inclusionary zoning is on the horizon and will add another additional cost to new housing

• And rising interest rates are both increasing project costs (higher interest charges) and slowing the macro economy

All of this is naturally causing developers to be more cautious when it comes buying new land. And we are seeing that in the above pricing. But at the same time, this dip in pricing is not going to be enough to absorb all of the additional costs that new housing projects now face in today's market.

If you'd like to download a full copy of Bullpen's report, click here.

This Philadelphia Inquirer article is behind a paywall, but I can tell you that it speaks to the city's increasing use of modular construction for infill apartment buildings:

Building modularly can save 20% on total construction costs, he said. Projects can be constructed in half the time, and rental revenue comes in sooner. Workers build apartments in pieces in a factory as others lay the foundation. Factory work doesn’t have to pause for inclement weather.

Alterra Property Group has found that modular construction is cost- and time-effective when it builds between 100 and 500 units and between four and six stories. Under that, building on-site is more efficient, Addimando said. Above that, builders can run up against building code restrictions.

Consider this recently completed project, called LVL North:

• 1.5 acre site

• Site acquired in February 2020

• Construction commenced in June 2020 (was it already entitled?)

• Over 500,000 square feet

• 7 storeys

• 410 market-rate apartments

• Two levels of commercial spaces

• Over 300 parking spaces in a two-level below-grade parking structure

• Construction completed in 24 months (it's currently being leased up)

I am impressed by how quickly this was erected. Here in Toronto, it would likely take more than 24 months just to get through the rezoning process. Granted, a site this big in a central location next to transit would also likely beget multiple tall buildings.

But this form and scale of housing seems to be working for Philly. It is allowing the city to both build quickly and to experiment with emerging construction methods.

Bullpen Consulting just released its latest land insights reports for the Greater Toronto Area. For the period of Q2-2022, Ben Myers and the team identified 46 high-density residential land transactions with an average price of $95 per buildable square foot. This is down from $112 pbsf in Q1.

In the core of the city (former City of Toronto), the average price for Q2-2022 was $135 pbsf. In North York it was $103 pbsf. And in Scarborough it was $50 pbsf. Overall land prices are down about 15% from last quarter (though it's important to note that quarterly transactions can represent a relatively small sample size).

We have spoken before about how land prices tend to be fairly sticky in the face of changing cost structures. But what we are seeing right now is a bit of a perfect storm:

• Development charges (here in Toronto) are set to increase by 49%

• Hard costs have seen double digit increases (with some inputs increasing by 30-40%)

• Inclusionary zoning is on the horizon and will add another additional cost to new housing

• And rising interest rates are both increasing project costs (higher interest charges) and slowing the macro economy

All of this is naturally causing developers to be more cautious when it comes buying new land. And we are seeing that in the above pricing. But at the same time, this dip in pricing is not going to be enough to absorb all of the additional costs that new housing projects now face in today's market.

If you'd like to download a full copy of Bullpen's report, click here.