The Problem

Traditional Construction is Not Affordable

Housing has become increasingly unattainable for the middle class, particularly in areas with thriving job markets. According to McKinsey & Company, labor-productivity growth in construction has averaged a mere 1% annually over the past two decades. The construction industry has resisted industrialization, with methods remaining largely unchanged for over a century. As a result, housing, the world’s largest industry, has experienced minimal disruption and continues to rely on outdated techniques.

Consider This Scenario

Whenever you order a Tesla Model 3, Elon Musk brings the parts to your front yard and starts assembling them there. Isn't this absurd? This is what's happening in the construction industry. The materials and building code have changed, but the construction methods have largely remained the same for over a 100 years. Guys are still swinging hammers and hand painting walls. The residential construction industry has been resisting industrialization.

Annual Global CO2 Emissions

Source: Global ABC Global Status Report 2021, EIA

Annual Global CO2 Emissions

Source: Global ABC Global Status Report 2021, EIA

Housing is the biggest industry in the world and arguably the least disrupted one. Housing's combined contribution to GDP generally averages 15-18%: Residential investment (3-5% of GDP). Consumption spending on housing services (12-13% of GDP).

Zoning laws have recently been eased to allow higher housing density and solve housing affordability around the country, especially in California, to build accessory dwelling units ("ADUs") for use and rent. In 2019 alone, over 15,000 ADU permits were issued.

A new housing plan by the Biden administration offers a proposal to lower costs for manufactured homes by expanding financing options. It would also ease barriers around approvals and construction

Traditional Construction is Not Environmentally Friendly

Traditional Construction is Not Environmentally Friendly

The construction industry is a significant contributor to environmental degradation and climate change. In 2018, the EPA estimated that 600 million tons of construction and demolition (C&D) debris were generated in the U.S. alone. This waste includes materials such as steel, wood products, drywall, plaster, brick, clay tile, asphalt shingles, and concrete. Construction sites produce a staggering amount of waste, with up to 30% of materials being discarded.

The construction industry is a significant contributor to environmental degradation and climate change. In 2018, the EPA estimated that 600 million tons of construction and demolition (C&D) debris were generated in the U.S. alone. This waste includes materials such as steel, wood products, drywall, plaster, brick, clay tile, asphalt shingles, and concrete. Construction sites produce a staggering amount of waste, with up to 30% of materials being discarded.

Traditional Construction has Long Lead Times

The construction industry is notorious for its lengthy project timelines, often leading to significant delays and budget overruns. Traditional construction methods require sequential stages of work, from designing, getting approvals, and site preparation to actual construction and finishing. Each stage depends on the successful completion of the preceding stage, causing delays when issues arise. Furthermore, variables such as adverse weather conditions, regulation changes, or supply chain disruptions can extend these timelines even further. As a result, traditional construction often fails to meet the timely needs of a rapidly evolving society