Home construction is undergoing a revolution. Here’s how investors will benefit.

Imagine clicking “Print” on your laptop and then launching a robot to build a livable house. This outrageous scene seems to be lifted from a science fiction movie, but it’s being replaced Use today And could change the real estate market.

Labor is one of the issues facing an undersupplied housing market. 3D printer robot debutswhich Concrete is delivered into the outer and inner shells of the new homes via specially designed concentric hoses according to programmed floor plans, significantly reducing the construction costs of traditional homes.

As the real estate market becomes scarce 7 million householdsmany 3D printing construction companies such as Alquist 3D, bee, iconand Saibi Architecture Methods and timelines for home construction are changing. Since 3D printed houses are built from concrete, they are naturally hurricane– Earthquake resistant, compliant with international building codes, up to Construction costs reduced by 30% Than conventionally built houses.

During construction, metallic concrete reinforcements were added every 10 layers to increase strength and serve a similar purpose to steel bars. Unlike human labor, the robots do not tire, work continuously, and can build the exterior structure of a 1,300-square-foot house in about 40 hours. Not surprisingly, the total revenue of the 3D printing construction industry is expected to be Will reach $40 billion by 2027.

Simplified operation

3D printed houses will greatly impact the much-needed affordable housing sector in residential real estate, habitat for humanity The technology is already being used to mass-produce housing. Other benefits include a cleaner workplace, less waste, and increased energy efficiency due to concrete construction.

Construction workers are in short supply, and 3D printing only requires one or two people Supervise operations once. Synthetic concrete using recycled glass and solar panels for the roof means the 3D printed house can be energy neutral, producing as much energy as it uses.

Homebuilders nationwide are embracing the technology

Building a house using new technology flies on face Traditional timber house, used in the United States for the last century. this Meaning it may take time to convince the construction industry to convert its tried and trusted building practices into revolutionary new methods.

Much of this relies on the entry of domestic homebuilders. At this point, a new 3D housing community including 100 homes A project being built by Icon and national homebuilder Lennar is taking shape in north Austin, Texas, and is generating a lot of interest.

“In the future, I believe robots and drones will build entire communities, towns and cities, and we’ll look back to Lennar’s Wolf Ranch community as the place where mass construction with robots began,” said Icon’s CEO. Jason Ballard said in a statement.

How 3D-printed homes will impact real estate investing

All of this sounds great. But what does this mean for real estate investors? Here are four considerations.

1. 3D homes may be more popular than traditional homes in warmer climates home

It may take you a while to get used to the circular concrete patterned layers inside and outside your home, and once painted, it resembles cake frosting rather than cement. However, as more homes are built this way with less capital and energy costs, it’s hard to imagine they won’t catch on.

This lowers the barrier to entry for investors who want to become developers. The robots will also come to work on time and won’t require weekly cash payments. As a result, traditional homes in need of renovation may be demolished and replaced with new 3D homes, significantly reducing Fixed and flip investing models.

2. Build-to-rent communities may emerge Developer

It’s easy to imagine hundreds of robots painting 3D house-shaped patterns across the landscape, transforming land into communities in days or weeks instead of months, like the Icon/Lennar development in Texas Same. and high interest rate and low affordabilitywhich could transform development and rental housing in the United States for years to come, ending the housing shortage and making housing more affordable — and the savings could be passed down This is true for both homeowners and renters.

3. Reduce dependence on overseas timber and building materials

Supply chains have been a significant impediment to construction costs since the pandemic. and Suez Canal Problem The United States and the West are causing problems again need Reduce reliance on freight. If only the construction industry could figure out how sustainably sourced sand used in concrete recycling glass Instead of relying on costly cross-continental shipments of sand, 3D printing could mark the end of over-reliance on material supply chains, stabilizing construction costs.

4. Small homes and residential units will flourish and become a boon for vacations rent

and new law Green light for accessory dwelling unit use (bring), mass production at affordable prices has taken on new importance. In this regard, 3D printing could be a game-changer.

Guess so That Robot-made ADUs can be done if only Two weeks for less than $15,000. this meaning is Many homeowners can supplement their income by owning a vacation rental in their backyard or on additional land. Additionally, investors can purchase land to build tiny homes for instant passive income STR.

final thoughts

Given the advances in technology, it seems inevitable that robots will soon be building homes as well as cars. use of concrete The timing is just right due to an increase in extreme weather events. Concrete houses can knock down insurance feeThis will be a big advantage for investors in weather-damaged areas like Florida.

The speed of construction and cost savings are helping to change the way real estate is invested, making homes more affordable and affordable. Easier Build collectively. For investors, an obvious casualty will be flipping and wholesaling, as the next wave of homes will be new and likely to be sold directly by homebuilders.

This type of construction also benefits larger homebuilders who can afford the technology. Minimal framing, house wraps, and siding means many jobs in the construction industry will disappear, and small contractors and flippers will ultimately see a drop in revenue. However, roofing, plumbing and electrical are still installed in traditional ways, and business in these industries is likely to increase as homes are mass-produced.

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Notes on BiggerPockets: These are the opinions written by the author and do not necessarily represent the views of BiggerPockets.