Cusato and Cypress Group are breaking ground on the first of three kit homes in the Florida Keys as part of the Hurricane Irma recovery effort.
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During a presentation at NAHB’s 2019 Building Systems Housing Summit in October, Ed Hudson, Home Innovation Research Labs’ director, market research, provided insight as to when and where he believes off-site construction technologies are likely to have an impact in the coming years. The data presented were from a survey of builders Home Innovation conducted in August.

In the survey, four questions were asked on the topic of off-site housing technologies: two asking builders what off-site methods they anticipate using one and five years from now; one on barriers to using these technologies; and a final one seeking to understand the role labor played in their decisions regarding off-site housing. Here’s a look at some summary findings from Hudson’s presentation.

Looking ahead, builders anticipate using off-site construction methods, particularly roof trusses and open wall panels, more often. Modular and pre-assembled floors were also expected to be a more common part of builders’ standard practice. Respondents said they were least interested in manufactured, or HUD code, homes.

For most off-site construction practices, production builders were two to three times more likely to increase their use compared with custom builders. Likewise, townhouse and multifamily builders were far more likely to increase their use of off-site practices than were single-family builders. No difference was observed in future use based on the price point of home construction—i.e., starter, move-up, or luxury.

When considering a firm’s decision to use (or not use) prefabricated building systems and components, builders were asked about what role the availability of construction labor plays in that decision. They gave varied answers:

  • None—already use them.
  • No change—what we’re doing now works fine.
  • Unaware of the options.
  • Need trustworthy local sources.
  • Believe off-site technologies cost more than site-built.
  • Workforce is unwilling/unable to change.
  • It takes too much time and effort to change.
  • Off-site alternatives require extensive pre-planning and long wait times for delivery.
  • Have issues with local logistics for delivery, access to the site, or shipping.
  • There’s a negative perception of off-site in the market—homeowners see it as lower quality.
  • Can’t accommodate last-minute changes in home construction with off-site technologies.

Hudson’s presentation included strategies and practices that off-site housing producers might consider to mitigate these barriers:

  • Offer a turnkey materials-and-installation service—whether integrating upstream or downstream of their current operation.
  • Create a decentralized production strategy.
  • Provide system, equipment, and software know-how to larger builders so they can create their own off-site solution.
  • Provide training for local framers.
  • Use 3D modeling/BIM and virtual reality so home buyers can better evaluate plans.

For more details, visit HomeInnovation.com/MarketResearchContact.