flexiblefullpage - default
Currently Reading

Evolution or Revolution Coming for Builders, Experts Say

billboard - default

Evolution or Revolution Coming for Builders, Experts Say

October 22, 2018
Builders need to innovate, taking the attitude that there's "always room to grow"
Photo: Unsplash/Kyle Glenn

At a recent conference, housing experts identified several ways in which U.S. home builders need to innovate, or risk falling behind.  

CEO of Whelan Advisory and former managing director of JPMorgan Margaret Whelan says that in the U.S., new homes take months, even years to deliver, whereas in Japan or Europe, homes can be delivered in days, adding that build speed is just one of several facets of home building that "desperately needs innovation," Entrepreneur Says reports.

Yet one of the most transformative factors in housing today is tech giants like Amazon, Alphabet, and Tesla disrupting the market, and see great financial benefit in doing so, experts say. At the same conference, Mark Boud, chief economist of Metrostudy, explained that his client base is shifting meaningfully, “It used to be that my clients were builders and land developers, period. Now, it’s about 70/30, 30 percent being these non-traditional players … that share is going to increase dramatically over time."

Their meddling in home building comes at an opportune time: the US housing market is facing a shortage of inventory — especially affordable houses — and is projected to remain under-built through at least 2022. The iShares Dow Jones US Home Construction exchange-traded fund (ITB), for example, has plunged 28 percent in 2018, and is on pace for its worst year since 2008. Shortages of land and labor, coupled with rising interest rates and affordability constraints, have slowed the housing market.

Read more

leaderboard2 - default

Related Stories

Education + Training

Trade Programs Report Elevated Enrollment

Overall enrollment in higher education is slowing, but construction trade programs are booming 


Home Design That Differentiates

Shifting consumer attitudes and lifestyle needs demand new thinking in home builders' approach to designing homes

Home Design

Summer 2023 Design Trends Reveal Wellness Features Are Here to Stay

Health and wellness features and outdoor living amenities are among the most popular home design considerations in summer 2023

boombox1 -
native1 - default
halfpage2 -

More in Category

COVID-19 may be easing its grip on the U.S. after a disastrous two years, but lingering supply chain disruptions have builders holding onto their pandemic business tactics

An archive of NHQA-winning companies that represent home building's best in Total Quality Management

Don’t let the current hype about single-family B2R communities obscure the need to create long-term sustainability and asset value

native2 - default
halfpage1 -

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.

Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.