The Top 5 Considerations for Multifamily Owner/Operators Exploring Offsite Construction
By Sean Roberts, CEO, Villa
Offsite construction has rapidly emerged as a leading alternative for owner/operators and developers seeking efficient and cost-effective building methods. For multifamily owner/operators, offsite methods offer a faster, more predictable path to completion of additional units than traditional construction. These techniques ensure consistent quality through rigorous factory testing before delivery, and also minimize on-site disruption. Most projects are completed on shorter timelines and at a lower overall cost, without sacrificing design, livability, or long-term durability.
If you’re a multifamily builder considering modular construction for the first time, here are the top five considerations to help you maximize yield and resident satisfaction.
The Multifamily Sweet Spot: 750 Square Feet or Less
Villa’s modular home models can scale up to 1,200 square feet. However, for multifamily builders focused on maximizing yield, we often recommend keeping units under 750 square feet.
Here’s why: In many jurisdictions, particularly in California, buildings larger than 750 square feet are subject to impact fees—one-time charges that help local governments fund public infrastructure and services such as roads, schools, and parks. Developers typically pay these fees at the time of a building permit, subdivision approval, or certificate of occupancy. While these fees serve an important purpose, they can quickly add up, often ranging from $20,000 to $40,000 per unit, depending on the jurisdiction. Across a multifamily project, that can mean hundreds of thousands of dollars in additional costs, which are often passed along to residents through higher rents.
By keeping individual units below the 750-square-foot threshold, developers can significantly reduce fees, preserve affordability, and improve overall project margins. The result is a more attainable rent structure for residents and stronger long-term performance for investors.
How Villa can help: Our team can model different unit configurations under 750 square feet to help you minimize fees and maximize yield across your site.
Cut Installation Costs in Half
Beyond impact fees, design decisions also play a major role in logistics and build costs. A single-module unit such as Villa’s popular H650b (a two-bedroom, one-bath model) can be delivered and installed via crane as a single box. This streamlined approach minimizes transportation and setup costs while reducing on-site labor.
Larger units, by contrast, often require two boxes, effectively doubling transportation expenses. They also demand larger foundations, longer crane times, and more extensive finishing work, all of which can add significant time and cost to a project. In many cases, it’s more financially advantageous to install multiple single-box units rather than a few larger ones.
How Villa can help: We’ll identify the most efficient models and layouts for your lot, balancing installation costs with tenant appeal.
Designing Layouts That Elevate Resident Experience
One of the biggest decisions developers make is whether to prioritize density or the resident experience. SB 1211 made it possible for builders to now build up to eight detached ADUs on multifamily properties, space permitting.
Projects that leave room between modular homes for green space, patios, and shared courtyards often outperform more tightly packed developments. One study covered by Multi-Housing News found that communities integrating usable outdoor areas such as patios and shared courtyards can capture rent premiums of $15–$80 more per month. Studies also show that proximity to green spaces is associated with 8–9% higher home values, underscoring the financial and livability benefits of thoughtful site design.
Whether it’s adding thoughtful landscaping, orienting homes around a central courtyard, or designing for natural light and open airflow, these seemingly small choices can meaningfully elevate the resident experience. The result is a “community within a community” that can help reduce turnover, strengthen occupancy rates, and build long-term asset value.
How Villa can help: Our designers can simulate different site layouts to help you optimize both green space and unit count.
Finding the Right Unit Mix for Your Market
There’s no one-size-fits-all approach to multifamily design. The ideal unit mix depends on regional demographics, renter preferences, and the balance between affordability and revenue per square foot.
In many California markets, two-bedroom, one-bath units have proven especially versatile, attracting singles, roommates, and couples alike. Meanwhile, one-bedroom models can perform well in urban infill settings where renters prioritize privacy, walkability, and access to outdoor space.
How Villa can help: Using market demand data, we can determine the most profitable unit mix for each property in your portfolio.
Collaborate Early to Maximize ROI
Ultimately, thoughtful design decisions including right-sizing floor plans, streamlining delivery, and reducing on-site complexity can have a measurable impact on both yield and long-term project success.
Whether you’re planning to work with Villa or another modular expert, bring your partner into the process early. The right modular team can help you model layout variations, identify permitting thresholds, and design efficient configurations that maximize both resident experience and financial performance.
Interested in exploring modular options for your next multifamily project?
Villa’s team can help you evaluate cost scenarios, timeline efficiencies, and layout strategies tailored to your site and market. Learn more at villahomes.com.
The information provided here is not intended to and does not constitute legal advice. The information, content, and materials are provided for general informational purposes only. No reader, user, or browser of this site should act or refrain from acting on the basis of information on this site without first seeking legal advice from counsel in the relevant jurisdiction and should contact their attorney to obtain legal advice. Performance, estimates and/or projections provided in this article intended for illustrative purposes only and are not indicative of future results. Prospective customers, builders, investors, and readers should conduct their own independent investigation. Villa expressly disclaims all claims and liability that may be based upon or related to the information provided herein.