Mastering refugee accommodation: high-quality modules are already more cost-effective than cheap containers in the medium term

By the end of 2015, Switzerland was already expecting up to 50,000 asylum seekers, which, given the latest retention rate of 70% of all applications submitted, amounts to around 35,000 provisionally admitted persons. For 2016, even up to 100,000 asylum applications were forecast.

Mastering the accommodation of refugees

Thus, one thing is certain: the situation regarding the accommodation of refugees was tense, the transit centers of the cantons were largely overcrowded. In the canton of Bern, emergency law was even used, as the accommodation reserves were completely exhausted and no more places were available in asylum shelters. To prevent homelessness, the municipalities were forced to help - at least 800 additional places were needed quickly, according to the migration service of the canton of Bern, according to an article in the NZZ. To be able to provide them, the municipalities had to open civil defense facilities. But even that would not be enough in the long run.

The accommodation problem is urgent: housing for refugees must be created. What solutions are most economical?

In the face of adversity, municipalities, aid organizations and foundations have come up with new ideas. For example, the IKEA Foundation has designed self-build huts for around 1,200.- chf. At 500.- chf per place including bed and wardrobe, they are very cheap - but they are only a substitute for tents and thus an absolutely short-term emergency solution. Because the huts made of plastic have a short life span - the investment fizzles out after a few months. In addition, they are not insulated, cannot be heated and have to be installed in halls, as was once the case in an empty factory hall in the canton of Aargau. As far as kitchen and sanitary facilities etc. are concerned, the same problems arise as without such houses. The situation is even more drastic in the case of accommodation in army tents, which are also only suitable for summer use. Considerable follow-up investments are therefore necessary to accommodate the refugees adequately. Such "lightning solutions" became necessary because for too long there was a failure to create sustainable places for refugees in time.

"Cheap modules" as a solution? Cheap does not pay off: high follow-up costs, short service life

Especially as emergency housing, modules are a frequently used solution - additional living space and usable space can be provided very quickly for refugees and asylum seekers. Containers are cost-effective and can be erected at almost any location. The construction of residential containers as emergency housing is also a fast and economical alternative to conventional house construction.

But beware: investors who are forced to make quick decisions should keep one thing in mind: the "cheapest" version of containers requires low initial costs - but it is not the most economical solution. This is because low prices always mean low quality levels.

The very low-cost container models are poorly insulated, resulting in high heating costs in the cooler months and high energy costs for air conditioning in the warmer months. In addition, the lifespan of low-cost containers is very limited, so the investment is used up after only a short period of use. In addition, there are intangible criteria that can have further negative financial consequences: Just like tent cities made of army tents and other camps, cheap containers lack any homely atmosphere - from the inside as well as from the outside. And the fact that this can lead to high levels of discontent and riots with incalculable consequential costs, especially in the case of extraordinary challenges such as the current refugee crisis, is shown anew every day in the media.

The long-term economic alternative: High-quality containers - good quality and low follow-up costs

Compared to cheap containers, higher quality modules offer a very long service life and can be repurposed as needed at any time. Quality modules are well insulated, so energy costs for heating and cooling are correspondingly low. In addition, they allow the residents sufficient privacy and a good living environment, so they are conducive to a more conflict-free coexistence. Appropriate housing of refugees and asylum seekers in modules can largely prevent the riots triggered by frustration and discontent.

Mastering the accommodation of refugees

Good reasons for high-quality modular buildings for refugees and asylum seekers

  • High quality level and a long service life of 40 years and more

  • Year-round use, winter-proof: good insulation, thus lower heating and cooling costs

  • Integration of sanitary and kitchen facilities possible

  • Attractive exterior, flexible design and high acceptance by the population

  • Good indoor climate, homelike atmosphere and appropriate degree of privacy reduces conflict potential and thus follow-up costs

  • High flexibility, expandability and later conversion possible without further ado

  • Easy transport

  • Short construction times, fast assembly on site

Costs of housing refugees: a comparison

A calculation example shows that a higher initial investment already pays off in the medium term:

Tents

Size:about 20 m²
Acquisition costs:approx. 1'500.- CHF
Cost per m²:approx. 75.- CHF
Service life:approx. 12 months
Costs per m² and lifetime:approx. 75.- CHF

pro

contra

  • low procurement costs
  • fast set up
  • low transport costs
  • short life span
  • no heat insulation
  • no cold insulation
  • no sanitary facilities
  • no sound insulation
  • no privacy
  • very susceptible to dirt
  • depending on location high humidity
  • not suitable for winter

IKEA cottage

Size:approx. 17.5 m²
Acquisition costs:approx. 1'200.- CHF
Cost per m²:approx. 70.- CHF
Service life:approx. 2 years
Costs per m² and lifetime:approx. 35.- CHF

pro

contra

  • low procurement costs
  • fast set up
  • low transport costs
  • short life span
  • no heat insulation
  • no cold insulation
  • no sanitary facilities
  • no sound insulation
  • no privacy
  • very susceptible to dirt
  • depending on location high humidity
  • not suitable for winter

Cheap container

Size:approx. 17.5 m²
Acquisition costs:approx. 6'000.- CHF
Cost per m²:approx. 345.- CHF
Service life:approx. 4 years
Costs per m² and lifetime:approx. 86.- CHF

pro

contra

  • relatively low acquisition costs
  • heatable
  • robust housing unit
  • not very long lifetime
  • poor heat insulation
  • poor cold insulation
  • poor sound insulation
  • higher heating costs
  • insufficient or no sanitary facilities
  • higher operating and maintenance costs
  • very low degree of homeliness
  • Difficult to keep clean in the medium term
  • poor indoor climate depending on location

Modules (high quality)

Size:approx. 17.5 m²
Acquisition costs:approx. 9'000.- CHF
Cost per m²:approx. 515.- CHF
Service life:approx. 15 to 40 years
Costs per m² and lifetime:approx. 34.- CHF for 15 years
approx. 25.- CHF for 20 years
approx. 17.- CHF for 30 years
approx. 13.- CHF for 40 years

pro

contra

  • high durability
  • heatable
  • high quality level
  • low total costs over the lifetime and therefore the most efficient investment
  • good thermal insulation
  • good cold insulation
  • good sound insulation
  • sanitary facilities possible and fully integrated
  • high flexibility
  • high mobility
  • Modular and expandable
  • Reusability and repurposing possible (e.g. first as a schoolroom, then as an office and later as asylum accommodation if required)
  • high degree of homeliness
  • low susceptibility to dirt
  • good indoor climate
  • lower maintenance costs
  • moderate transport costs due to construction kit
  • quick assembly on site
  • higher initial investment
Mastering the accommodation of refugees

Conflicts are inevitable: Intangible and financial consequences of inadequate housing for refugees

As mentioned above, another factor must be taken into account: the consequences resulting from an almost unacceptable housing situation. Almost daily, there are reports of fights and mass brawls in asylum shelters. There is much heated discussion about these developments. But wouldn't it be better to avoid such escalations from the outset by providing adequate housing? Almost always, the housing situation is cited as the trigger for the riots: extreme crampedness, little to no privacy in tent cities and halls (with or without IKEA houses), no livability. The conditions are on the edge of what is reasonable. It is not surprising that the stress level rises considerably as a result and also gives vent to aggression.

In addition to humanitarian reasons, the considerable follow-up costs must also be considered here: costs for security forces, for police presence and police operations, for damaged and destroyed facilities, for medical treatment, etc.

One of many headlines from Germany: "Refugees do not want to enter former Max Bahr store". What is behind this: refugees refuse with hunger strike against the temporary accommodation in a vacant DIY store due to the unacceptable conditions and demand accommodation in containers with rooms for 4 to 5 people.

This clearly shows that investing in short-term solutions does not make economic sense. High-quality modular solutions require a somewhat higher initial investment, but the follow-up costs are extremely low and calculable.

Huber SwissHouse: Full service provider for high-quality module solutions

Huber SwissHouse is a partner for both government agencies and NGOs. Delivery and erection of the high quality modules designed as required is carried out worldwide. The foldable modules as a kit facilitate transport and reduce transportation costs. The erection of the modules is very fast, short construction times are guaranteed.

Acquisition costs and transport costs are higher than for UNHCR tents or the new simple IKEA houses - nevertheless, the decision for high-quality modules pays off, as they represent a sustainable and solid investment. High-quality modules for asylum seekers and refugees have much lower follow-up costs than cheap containers or short-term flash solutions. And they effectively prevent conflict situations.

Further information:

Martin Schuster, 25.11.2022

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