flexiblefullpage - default
Currently Reading

Evolution or Revolution Coming for Builders, Experts Say

Advertisement
billboard - default
Trends

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

Advertisement
leaderboard2 - default

Related Stories

Building Materials

Lumber Leads Building Materials Prices Higher in March

Overall, the cost of building materials rose during March, with softwood lumber, gypsum products, and concrete all seeing price increases. Only steel mill materials saw price drops

Demographics

Post-Pandemic Trends: Working From Home

A greater share of workers are still working from home than before the pandemic and they're concentrated in the information, professional, and financial services sectors

Paints / Stains / Finishes

Sherwin-Williams' Kingdom Gold Color Is Making New Friends

The paints and coatings brand takes a strategic marketing approach to shine a light on an overlooked hue

Advertisement
boombox1 -
Advertisement
native1 - default
halfpage2 -

More in Category

Delaware-based Schell Brothers, our 2023 Builder of the Year, brings a refreshing approach to delivering homes and measuring success with an overriding mission of happiness

NAHB Chairman's Message: In a challenging business environment for home builders, and with higher housing costs for families, the National Association of Home Builders is working to help home builders better meet the nation's housing needs

Sure there are challenges, but overall, Pro Builder's annual Housing Forecast Survey finds home builders are optimistic about the coming year

Advertisement
native2 - default
Advertisement
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
Subscribe
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.