Hi BP Community
I kept reading the news that 3D printed houses are taking off (first in NYC, now in TX). See below link. How is this going to affect the house price? And what actions should we take now?
@Kevin Zhang i cant click the link but a thought of mine is unless the printer has the abiltiy to produce exterior and/or interior finishes savings will be minimal.
The actual framing of the house is actually one of the cheapest parts of it even with lumber increasing significantly. Labor for framing also is a small portion of the man hours involved in a total house.
You would also need to take into consideration plumbing, electrical, hvac, trim, drywall, cabinets etc and etc.
Not saying it cant haopen in the future but I would think robots performing all thise tasks is in the future a ways.
Much ado about nothing.
1. This is an industry prop piece, either written by the printers or by someone acting as their shill, because it's not really journalism - just read this section:
"Whether made of concrete or a polymer, these homes have shown to be far more energy efficient, sustainable and resilient than conventional wood-built homes.
Just ask Tim Shea, 70, who lives in one of the ICON homes built for the homeless in Austin. He weathered the recent cold and ice storm there with no problems at all.
“I didn’t even know there was one until I lifted up the blinds,” said Shea. “It’s awesome. I can just deliver a slew of adjectives, but it’s a fantastic place. It’s the most unique place I’ve ever lived in. Houses, apartments, I’m like a bug in a rug in this place.”
Shown by whom, when, and using what method to be "far more energy efficient, sustainable and resilient"?
2. Pre-constructed home sections is nothing new under the sun. That they're made of extrudable concrete instead of wood panels is really immaterial. It's a kit home, which has been offered for about 130+ years now. The only real difference is in the materials used.
3. As mentioned above, a lot of the cost is in the details. Even with higher lumber prices I doubt they can beat lumber-built pricing, and lumber is renewable and sustainable (how they figure that extrudable concrete is more sustainable than an infinitely renewable resource is beyond me).
Anyway, it's certainly an interesting concept and I welcome it as another player in the marketplace, but I have zero thoughts that it will displace traditional construction.
Hello - here is the link again from CNBC. Or search on google “3D printed house”
The article says the cost is 10%-30% cheaper and several months faster than traditional builder. It does look like they are building both exterior and interior.
Will you still keep your investment path as is or adjust the course of action?
Very good points though. Agreed that some of the comments in the article might be just typical sales pitch lol
technology advancement is swift and over time it may very well bring down the cost further. It may not change the way people buy houses but it could over time. Just like in early 2000, C language was once so popular and suddenly it was replaced by different other languages and the software engineer who only adept at C lost their jobs.
Not sure when this 3D printed house will be at scale and how it’s changing supply vs demand picture in the rental market.
Or maybe it’s just like a on-going competition between diesel engine vs electrified battery/fuel cell as we see nowadays. Neither side has overwhelming advantage yet. People still need diesel
I’m just hoping that yes for most homebuyers , 3D printed houses can be viewed as an option but not in a way to crushing the landlord / rental market...
yes and no is my thoughts. Will 3D houses be cheaper, for sure. But there will also be a quality difference. It will need some time for the technology to mature so the product is a bit better than what it currently is to make an impact I think but the only properties at risk would be the lower quality inventory on the market IMO
@Kevin Zhang Remember that buying property is not only about the house. You're buying the land lot and the bundle of rights associated with owning it. The house just so happens to be there and most likely the seller won't (can't is to strong of word) take it with him. I really wouldn't worry about it. If it did happen in the near future, we would just have nicer technology and it might be easier to make repairs on our rentals. Imagine being able to print a roof on the spot instead of having to order the materials from our of state. Keep your game on and invest in sound properties where anyone would love to live.
No, I doubt we will see prices plummet. Building houses isn’t exceptionally hard. (It is hard all my contractor friends) Entitling land, purchasing lots, connecting utilities, getting permits, lining up subs, finishing, holding costs. then marketing and selling a property, and profit for all parties involved all go into the sale price.
Thomas Edison had a great idea for making houses out of poured/formed concrete. It never took off. Constructing the house isn’t the hard part. It is part of the hard part.
@Kevin Zhang the possibilty of printed homes has no affect on my choices of investments. The current economic state of our country is a much bigger concern for my investments.
As someone stated already the actual construction of the home is the easy part.
I like your thought! Always a double-edged sword...