Building houses has always involved digital solutions — in the form of tradespeople’s skilful fingers. Recently fintechs have joined in, simplifying the mortgage process, disrupting how properties are bought and sold and even selling fractional ownerships in homes.
Now technology has staged a more radical intervention. US start-ups are pioneering 3D printing of whole houses. A giant print head resembling the nozzle of an icing bag squirts out concrete to build whole walls in layers and in situ.
This is weirdly compelling to watch. But can it make a real difference to the affordability of US housing, as proponents claim?
High prices and mortgage rates have together put home ownership out of reach for many. The most recent reading for the Housing Affordability Index, measured by the National Association of Realtors, was 91.3, down from 143 a year ago and the lowest reading since September 1985. An index below 100 means that a family with the median income earned too little to afford a median-priced home
House printers say their method is faster and cheaper than traditional construction, which builds homes on site using wooden frames. The added speed could help address severe US housing shortages, particularly for low income housing. That might reduce overcrowding, evictions and homelessness.
The business of printing houses is at an early stage. One of the biggest companies — Mighty Buildings — has finished and delivered just 19 houses so far. It expects the number to be over 500 by the end of 2024.
Interest is growing. Another company, ICON, is working with US homebuilder Lennar to build 100 3D printed houses near Austin. Venture capital groups have invested nearly $400mn in 3D building construction companies in 2022, according to PitchBook. That is not so much, but still eight times more than what was raised in the previous five years combined.
While exciting to watch, such 3D house printing can only do so much to improve affordability. Land prices are usually the bulk of a development’s cost. And it is not clear that 3D house printing, with its complicated building rigs, would work in densely populated urban areas.
This technology has bags of promise. But this resides primarily in its ability to create varied low-cost buildings. House printing could supersede traditional factory-based prefabrication in cheapness and flexibility. It cannot, on its own, solve America’s housing crisis.
The Lex team is interested in hearing more from readers. Please tell us what you think of 3D printed houses in the comments section below.
