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Mass Timber and Multifamily Housing: Performance, Challenges, and Opportunities for Developers and Architects

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Real Estate Market & Trends
Mass Timber and Multifamily Housing: Performance, Challenges, and Opportunities for Developers and Architects
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Mass Timber and Multifamily Housing: Real Performance, Challenges, and Opportunities for Urban Development

Just five years ago, proposing mass timber structural wood for multifamily developments would have raised skeptical eyebrows in any real estate investment board in Latin America. Today, the trend is unstoppable: with over 700 buildings in Canada, dozens in the United States and Europe, it is beginning to appear in emerging markets with new incentives, regulations, and a fresh mindset regarding sustainability, efficiency, and profitability.

In this article, I explore the reasons behind this paradigm shift, its ongoing challenges, and the central question: when, how, and for whom is it worth betting on mass timber in multifamily housing and real estate products? I base this on data from developments, recent analyses, and international case studies, along with a critical perspective based on real experiences as an architect and consultant. Whether you are a developer, architect, student, or promoter, this analysis will shed light and, hopefully, provide some practical ideas for your upcoming projects.

What Is Mass Timber and Why Is It Relevant Today?

Mass timber (solid structural wood) encompasses a family of industrialized products — CLT (cross-laminated timber), GLT, LVL, and other systems — assembled into large-format panels or beams, enabling load-bearing structures of mid and high-rise, long spans, and minimal footprint. Unlike traditional wood, it is designed to compete on equal footing with concrete and steel in residential buildings, offices, hotels, and especially mid-density multifamily proposals.

Why this recent boom? Simple: regulatory pressure to reduce emissions in construction and operation, the urgency to speed up deliveries amid urban demand, and evidence that — when well designed and managed — mass timber has real competitive benefits in construction time, profitability, perceived value, and carbon cycle reduction.

How Much Does Mass Timber Contribute to Multifamily Development?

First, it's essential to separate myth from reality. Structural wood can reduce the total construction time by between 10% and 30%, especially due to prefabrication and dry assembly. This, as reported in studies like the Mass Timber Business Case Studies, results in savings in logistics and labor, but also lowers the risk of weather-related issues and delays that often skyrocket costs in wet works.

Mass timber is, above all, an enabler of urban efficiency: its lightweight structures allow for simpler foundations, resource savings, and unprecedented possibilities on complex plots (and therefore, cheaper or more central). Additionally, there is growing evidence that it improves perceived quality, natural thermal comfort, and even inhabitants’ health, linking biophilic interior design with the preference for renewable materials.

The Financial Side: More Expensive or More Profitable?

Here is where every developer stakes their credibility: is it truly worthwhile? Reviewing comparative evidence, mass timber is usually marginally more expensive in direct structural costs (between 5% and 12% versus concrete/steel, source: Progress Chamber Research), but compensates through:

  • Shorter construction time: Allows entering the sales or rental curve earlier (especially relevant in high urban demand markets).
  • Lower financial expenses and construction interest costs.
  • Potential for higher sale/rental prices, linked to demand for green attributes and design.
  • Less disruption to the neighborhood and fewer complaints (less dust, noise, and construction waste).

In a real case reported by Woodworks, “District Office” in Portland, time savings allowed leasing spaces nearly three months earlier than comparable developments. Although the cost was somewhat higher, those extra three months translated into a net increase in total return on investment, as well as rapid absorption in the rental market.

In Which Cases Is It Worth Choosing Mass Timber for Multifamily Projects?

The decision is not linear. Below are some scenarios where I believe mass timber offers clear advantages:

  • Projects in areas with flexible building codes and/or incentives for sustainable construction.
  • Markets where delivery speed (and therefore sales/rent speed) makes a competitive difference.
  • Mid-rise buildings (4 to 12 floors), where module logistics and assembly offset initial costs.
  • Developments aiming to differentiate with certifications (LEED, EDGE, WELL, etc.), user well-being improvements, and clear sustainability attributes.

Real Challenges of Mass Timber: What Remains to Be Solved?

Not everything is easy or automatic. In my experience, and in recent sector analyses, the main barriers to operationalize mass timber in multifamily projects are:

  • Material availability and logistics: access to local suppliers limits or raises costs for some projects, especially outside centers with developed industries.
  • Lack of skilled labor and construction experience: early projects typically endure a learning curve.
  • Uncertain or inflexible regulations: although countries like Canada or the U.S. update their codes, much of Latin America still requires specific review to scale this type of construction.
  • End-user perception and education: there are prejudices regarding safety, durability, and even acoustic/thermal performance that must be addressed with clear communication, guided visits, and long-term measurements.

A paradigm case is the Canyons, a multifamily building in Portland, Oregon. There, the development team overcame code, logistics, and neighborhood perception challenges by openly communicating about fire resistance, durability in humid climates, and health benefits (you can check more about their process in the full case study here).

Comparative Analysis: Mass Timber vs. Concrete and Steel

A frequent consultative exercise is the life cycle analysis (LCA+LCC) and total cost comparison between structural solutions. Recent academic studies indicate that initial costs may be higher, but savings in foundations, labor, and accelerated economic capitalization ultimately equalize or improve overall profitability, especially when including ecological externalities and user well-being ([academic source](https://www.researchgate.net/publication/338374876_Life-Cycle_Cost_Analysis_of_a_Mass_Timber_Building_Methodology_and_Hypothetical_Case_Study?utm_source=deptho.ai)).

I would add a personal anecdote: a couple of years ago, advising a consortium evaluating its first CLT building, we discovered that although the structure budget increased by 8%, savings in construction equipment, ease of assembly, and reduced personnel movement balanced the final account. The main difference was the learning curve and the need for expert integrators from day one.

International Trends and Adoption in Latin America

Canada leads the race — nearly 700 buildings completed as of June 2024 and more than 140 under construction or in design ([see The Mass Timber Roadmap](https://transitionaccelerator.ca/wp-content/uploads/2024/06/MT_Roadmap_Digital_vf.pdf?utm_source=deptho.ai)) — while Europe experiments with mixed solutions and softer regulations. In Uruguay, Chile, and parts of Mexico, clear incentives already exist, with Uruguay moving towards greater industrialization and Chile presenting hybrid wood and concrete prototypes.

The key for Latin America will be developing local industries, adapting regulatory frameworks, enhancing professional training, and identifying plots where materials logistics is competitive. The first developers who master the learning curve will hold a strategic advantage during the next decade.

Strategies for Architects and Developers: Keys to Success

  • Form early partnerships with material suppliers and assemblers. Vertical integration is key to avoiding cost overruns and delays on site.
  • Use BIM methodologies, digital modeling, and advanced rendering starting from the conceptual phase. This reduces rework, coordinates trades, and enables better communication with clients and investors (for photorealistic visualizations consider advanced solutions like Sketch to Render by Deptho).
  • Identify the project’s value driver: is it sustainability, well-being differentiation, speed of delivery, or long-term savings? According to this, prioritize communication with stakeholders and end-users.
  • Invest in training, risk management, and early communication with authorities and the local community.
  • Carefully evaluate the life cycle, not just the initial cost, integrating maintenance, refurbishment, and future conversion potential.
"The first experiences with mass timber in Latin America show that the industrialization culture must be learned and adapted, but the results are tangible: fewer days on site, zero neighborhood complaints, and a product that, year after year, gains in perceived value and brand opportunity."

The Immediate Future: Challenges, Policy, and a New Urban Narrative

Challenges remain: updating codes faster, scaling technical training, expanding logistics, and avoiding greenwashing. But the pressure to decarbonize cities, increasingly demanding users, and the emergence of AI and digital processes will transform mass timber design — integrating, for example, advanced editing and digital presentation tools like Fill Room, to explore interior variants in seconds and sell the differentiator from minute one.

As an architect, I fell in love with the texture, warmth, and unique atmosphere of exposed wood; as a consultant, I always warn: industrializing is a cultural change, but those who master it achieve real estate products that anticipate demand and multiply differentials against competitors. The moment is now.

Want to Dive Deeper?

I recommend exploring other guides and blog articles from Deptho on sustainable development, artificial intelligence applied to design, and real estate success stories. And if you want to present your next multifamily project with irresistible and standout visuals, today you can create renders and walkthroughs in minutes with our tools, try them here.

Have you been part of a mass timber project? Share your experience and questions in the comments, and I’ll help you unravel the key details to reduce risks and maximize results.

References and Resources for Deeper Learning