From advanced jobsite technology to factory-built homes, the housing industry is embracing innovation in the midst of a labor and materials shortage, but further progress is hindered by a lack of investment from large companies, says Ed Hudson, Director of Market Research at Home Innovation Research Labs. As the building industry works at 100% capacity to work down backlogs post-pandemic, builders aren’t yet ready to consider innovation or the risks that come along with it.
According to Hudson, labor, supply of materials, and affordability are the biggest obstacles for an industry on the cusp of innovation, but these problems could also usher in new changes and offer solutions to help builders get back on track.
Third, the problem of housing affordability is becoming acute in housing — land, labor, and material prices are rising, and mortgage rates look to be trending upward, as well. It’s a great time to evaluate opportunities to provide products and services to alternative forms of housing — like Accessory Dwelling Units (ADUs) and manufactured housing, both of which could see a big boom in the near term.