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Bringing Down Housing Costs – is Technology the Answer?

ICON 3D Printed House

The other day, I saw a video of a robot doing a backflip.  You can check it out here.

It made me wonder if someday robots could replace humans in construction.  I’ll answer my own question.

Those robots require intense programming.  Therefore, the robot is only going to be effective at repetitive tasks.  But maybe that means that a robot could be programmed to do rough framing carpentry.  Studs are typically installed at 16 inches on center.  Probably this pipe dream reflects more my lack of skill and understanding of carpentry!

Probably robots would be better suited to work in a panel factory making wood frame wall panels to be shipped to job sites and craned in by human workers.

But the greater idea is that we’re at the cusp of breakthrough in new technologies that may make housing more affordable.  Below is a summary of the first five of ten new technologies that could impact housing costs.  Come back next week for the last five.

  1. 3D Printing (Additive Manufacturing)
  • What it is: 3D printing in construction uses large-scale printers to build homes layer by layer, often using concrete or other specialized materials.
  • Benefits: It can significantly reduce labor costs, as the process requires fewer workers. The speed of construction is also much faster compared to traditional methods. Moreover, 3D printing can reduce material waste and allow for the creation of customized designs with less effort.
  • Example: Companies like ICON and Apis Cor have demonstrated 3D printed homes in various parts of the world. These homes can be built in as little as 24 hours, and costs can be as much as 30-40% lower than traditional construction.
  • Challenges:  Not yet cost effective and housing units are a little weird looking.  The interior exposed layers will accumulate dust and not deliver on the low maintenance experience that homeowners and rents are looking for.
  1. Modular and Prefabricated Housing
  • What it is: Modular homes are built in factories in sections or modules, which are then transported to the site and assembled. Prefabricated homes are constructed from pre-manufactured components that are then put together on-site.
  • Benefits: Factory-controlled environments allow for faster, more precise construction, reducing material waste and labor costs. The ability to mass-produce components also leads to economies of scale. Moreover, because much of the work is done off-site, these homes can be completed in a fraction of the time of traditional homes.
  • Example: Companies like Villavo are at the forefront of modular construction, providing cost-effective solutions for affordable apartments.
  • Challenges:  Financing can be more complicated.  Lack of customization and public perception of modular housing being lower quality.  One of the leading manufacturers declared filed bankruptcy in 2021.
  1. Cross-Laminated Timber (CLT)
  • What it is: CLT is a sustainable building material made from layers of wood stacked at right angles and bonded together to form solid panels.
  • Benefits: CLT is lighter, faster to build with, and more sustainable than traditional concrete or steel. It also has good thermal insulation properties, reducing energy costs. It’s seen as a green alternative to conventional building materials and can be used in both low- and high-rise buildings.
  • Example: CLT is gaining popularity in Europe and North America, with projects like the Brock Commons Tallwood House at the University of British Columbia, which is one of the tallest CLT buildings in the world.
  • Challenges:  More expensive than steel or concrete and code issues with timber building height.  Costs can escalate with plumbing HVAC and electrical trades because there are no wall cavities.  Transportation costs can also be higher owing to fewer manufacturing sites.  Finally, design costs may also be higher.
  1. Light-Gauge Steel (LGS) Construction
  • What it is: Light-gauge steel uses thinner, more lightweight steel framing components compared to traditional steel construction.
  • Benefits: It is more affordable and quicker to assemble than traditional steel framing, and it requires less energy to manufacture. Additionally, it is more durable than wood and offers better resistance to pests, moisture, and fire. It also allows for more flexible design options.
  • Example: Light-gauge steel has been used in modular and prefabricated homes, particularly in markets like Australia and the U.S.
  • Challenges:  Light-gauge steel loses its strength in the advent of fire, requiring adequate fire protection.  The need for fire protection adds further to the already higher cost than wood frame construction.
  1. Passive House Design
  • What it is: Passive House design focuses on creating ultra-energy-efficient buildings that require little energy for heating or cooling. This is achieved through airtight construction, superior insulation, high-performance windows, and ventilation systems.
  • Benefits: While the initial cost may be slightly higher, the long-term savings in energy bills can make passive homes more affordable over time. They’re also more sustainable and have a lower environmental footprint.
  • Example: Several affordable housing projects in Europe are adopting Passive House standards to reduce both construction and ongoing energy costs.
  • Challenges:  Costs will have to become more advantageous for this technology to be adopted widely.

Of these five, modular and prefabricated housing seems to hold the most immediate promise.  The other four options are either more costly or have yet to achieve potential cost savings that might be realized later in the case of 3D printing.  The disadvantages seem like they can be overcome – the lack of customization might be acceptable in exchange for lower cost.  And the perception of low quality can be erased if quality finishes are selected.  This approach looks particularly attractive to apartment construction.

Come back next week to explore five more alternatives.

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