Re:Redfin Cuts 13% of Staff, Shuts Down Home-Flipping Business
by onlyrealcuzzo on Wednesday November 09, 2022 @10:21AM
(#33532832)
> Fixing up homes is very inefficient and usually done by mom and pops.
This doesn't ipso-facto make it inefficient.
There's evidence that construction does not become meaningfully more efficient with scale [1]. At GIGANTIC scales, you're looking at maybe 10% savings. And these scales are quite rare in the US & the EU - mostly only happening in Asia.
True, on the largest investment of most people's lives - 10% is something...
Anyway - you're not going to get great returns with layers of high-paid management and beat mom & pops by much.
This doesn't ipso-facto make it inefficient.
There's evidence that construction does not become meaningfully more efficient with scale [1]. At GIGANTIC scales, you're looking at maybe 10% savings. And these scales are quite rare in the US & the EU - mostly only happening in Asia.
True, on the largest investment of most people's lives - 10% is something...
Anyway - you're not going to get great returns with layers of high-paid management and beat mom & pops by much.
[1] https://constructionphysics.substack.com/p/why-are-there-so-...