Relocatable modular buildings (RMBs) are emerging as one of the fastest and most cost-effective ways to meet sudden space demands, from classrooms and medical facilities to disaster relief shelters. But while the units offer speed, flexibility, and sustainability, researchers warn that logistical and lifecycle management challenges continue to limit broader adoption.

The Modular Building Institute (MBI) highlights the benefits in its 2025 report, noting that RMBs are factory-built, standardized, and easily transported. That makes them attractive in urgent situations, such as when schools must add classrooms quickly, hospitals face patient surges like during the COVID-19 pandemic, or communities need emergency housing after natural disasters.

Public school districts in North America already operate about 200,000 relocatable classrooms, while businesses own or manage an additional 300,000 units, according to MBI. In 2024, organizations invested roughly $800 million in acquiring and refurbishing RMB assets.

Beyond temporary fixes, RMBs are proving valuable long term. Their standardized production reduces maintenance costs, and they hold resale value far better than traditional buildings. In fact, resale values of RMBs rose 143% in 2024, driven by rising new construction costs.

“This trend highlights how unique this asset class is,” MBI says. “Rather than depreciating to a fraction of their original value, these modular units can appreciate in nominal terms due to external factors. Essentially, since the cost to build new keeps climbing, buyers are willing to pay a premium for used inventory — especially if units are in good condition.”

Barriers to Growth

Despite the momentum, RMBs face growing pains. A recent study by researchers at Hanyang University’s Education Research Industry Cluster in South Korea points to issues such as fragmented contractor-subcontractor relationships, which lead to information loss and poor tracking of units across their lifecycle.

Relocation itself poses hurdles. Units are designed to be moved, but transportation, storage, and reconfiguration require careful planning. Without coordinated scheduling and optimized routes, units risk sitting idle or deteriorating.

“The absence of a centralized system to track the location, condition, and operational status of modules further complicates this challenge,” the Hanyang researchers say. “Without accurate logistical coordination and real-time tracking, modular units may become underutilized, misplaced, or suffer from delayed redeployment, impacting overall project efficiency.”

Additionally, regional building codes create obstacles. “A structure designed for Florida’s wind zones, for example, may not be suitable for California’s seismic standards or New York’s snow loads,” MBI notes.

Technology Solutions on the Horizon

One potential answer lies in digital twin technology, which creates a virtual replica of modular units and integrates building information modeling (BIM), IoT sensors, and geographic data. Researchers argue this could allow owners to monitor condition, track movement, and plan redeployment more effectively.

“Despite its growing application, the use of digital twin technology in the modular construction sector, especially in the management of relocatable buildings, remains underexploited,” the Hanyang paper says.

Looking Ahead

Advocates say that as technology adoption grows and logistics challenges are ironed out, RMBs could become even more popular among schools, healthcare systems, emergency planners, and corporations seeking scalable solutions.

With rising construction costs, sustainability pressures, and growing space demands, experts believe RMBs will continue to expand their role. The industry’s ability to streamline logistics and embrace digital management tools may determine just how far and fast this building trend grows.

Originally reported by Joe Burns in Construction Dive.