The Problem

Traditional Construction is Not Affordable

Housing has gotten out of reach for the middle class, especially around desirable areas with well-paying jobs.


“Labor-productivity growth in construction has averaged only 1 percent a year over the past two decades” – McKinsey & Company.


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


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

The EPA estimated 600 million tons of C&D debris were generated in the U.S. in 2018 alone. Examples of C&D debris include steel, wood products, drywall and plaster, brick and clay tile, asphalt shingles, concrete, etc. 


Waste bins (skips) at construction sites get filled up every week. As much as 30% of the material is wasted. 


According to the UN Environment Program, buildings (Construction and Operations) are responsible for 40% of CO2 emissions in the world.