Innovation in homebuilding and the future of housing

Abstract

Problem: The future of housing depends in part on innovation by homebuilders. Planners should know how to influence innovation in homebuilding in order to promote innovative practices that conserve the environment, improve quality, and reduce costs. Purpose: This article explains challenges involved in innovation in home building, as well as providing planners with strategies to influence innovation in the industry. Methods: I review the literature and identify sources of resistance to or acceptance of innovation in home building. I also report the results of two national surveys of innovation adoption and use regression analysis to test variables likely to inhibit or promote innovation. Results and conclusions: Small builders receptive to innovation are likely to be led by a technology champion and to build custom homes for a relatively affluent and informed clientele. These firms provide a likely audience for technology innovations that require more upfront investment, as with some green building products, but can be marketed as highly innovative to homebuyers interested in higher performance in energy efficiency, sustainability or durability. In order to impact a larger portion of the housing market, large production builders should be the target for innovations that contribute to affordability in entry-level homes or to energy efficiency, sustainability and durability in higher priced houses. Takeaway for practice: Planners aiming to encourage innovation in homebuilding should craft strategies that recognize the opportunities, the structure of the industry, and the factors influencing innovation adoption. Local builders with owners who champion innovation are good targets for demonstration programs that involve custom homes. Larger production builders will want strategies that can be replicated in multiple market areas, and are likely to avoid localities whose codes and regulations would require them to change their production models.