Prompt One
Innovation Incentives
Since the start of the new millennium, significant technological advancements have triggered increased productivity in virtually every major industry. However, residential construction remains largely unchanged, with minimal productivity gains over the past several decades, even as housing affordability declines due to a lack of adequate housing supply. While builders and developers have historically been reluctant to adopt new technologies, many housing-focused construction innovations exist. Here are some examples:
-
Modular construction: This approach involves constructing modules - rooms or sections of a building - in a factory setting. Building in a factory allows for economies of scale in raw material purchasing, easier replication of standardized designs (such as in large apartment buildings), use of more advanced machinery than is available to conventional construction sites, and protection from weather and seasonal changes that can lead to setbacks and delays. In 2024, Ivory Innovations’ Ivory Prize for Housing Affordability recognized four standout builders in this space: Capsule (finalist), Onx (finalist), PathHouse (finalist), and Villa (winner).
-
3D printing: This technology streamlines the building process by automating the placement of concrete. Unlike modular construction, 3D printed homes are built on-site, using a robotic arm or a gantry system to move around a nozzle which excretes concrete in layers. 3D printing is a form of automation and allows for key parts of the building process to be completed faster and with less reliance on labor. Past Ivory Prize recognitions in this space include Apis Cor (finalist) and ICON (finalist).
-
On-site automation and robotics: This refers to the utilization of robotic technology and/or automated machinery to perform on-site construction tasks which are traditionally handled by human workers. While not inexpensive, these tools and technologies may be more seamlessly adopted by builders because - relative to other construction innovations - they can be easily adapted to the conventional construction workflow. A few examples from the Ivory Prize are Canvas (finalist) and Diamond Age (winner).
-
Mass timber: In addition to building method solutions, many novel material alternatives are also available to homebuilders. These material innovations can offer lower costs and labor demands, reduced embodied carbon, and better performance over the life of the home. A prime example is mass timber, which is a category of wood product that is made up of solid wood panels that are glued or nailed together. Mass timber products represent a low-carbon option that can be used for many applications, from interior finishes for single-family homes to load-bearing structural components for large multifamily buildings. Past Ivory Prize organizations in this space include PathHouse (finalist) and Forterra (finalist). More information on mass timber products and their uses can also be found at thinkwood.com/mass-timber
The lack of adoption of these solutions by the homebuilding industry can be attributed to several different factors. For one, many builders and developers are simply not sufficiently familiar with these innovations. While most are likely aware that these alternatives exist, they may not fully understand their benefits, costs, or practical applications. Additionally, in spite of the long-term savings that these solutions offer, the high upfront costs associated with new technologies often deter builders, particularly those operating in tight-margin markets. Finally, there’s also a significant risk factor involved in switching from conventional methods that have been relied on for decades. Builders are understandably hesitant to invest in unproven methods or materials that may not have widespread market acceptance or regulatory approval. This reluctance to innovate, coupled with the industry's overall conservatism, has led to slow progress in improving housing affordability through construction technology advancements.
Your Challenge
Your challenge is to develop a solution that encourages the adoption of innovative building methods and materials. This could include financial products, such as tax incentives or subsidies that offset the initial investment in new technologies, or it could involve regulatory changes that streamline the approval process for using these methods. Another option might be educational programs that help builders understand and integrate innovative practices into their projects. Regardless of your approach, your solution should aim to break down the barriers that prevent builders and developers from embracing cost-saving construction innovations.
Good to Know
As you think through your submission, bear in mind the importance of creating a clear path to implementation. Solutions may be envisioned as standalone business models, product development recommendations for an existing business or organization, or policy recommendations for a government agency. Other models may also work. As you weigh your options, be sure to consider how they impact the feasibility and scalability of your idea.
In addition to choosing a viable “vehicle” for your idea as detailed above, successful submissions usually focus on a specific geographic area and/or population. Housing solutions are rarely one-size-fits-all, and different areas and groups have their own distinct challenges and needs. Being specific about your target population and/or place will allow you to articulate to the judges how and why your solution is a fit.
