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Re:Why are there no startups in the real estate construction... by cosmic_quanta on Friday July 07, 2023 @09:04AM (#36631102)
That's an interesting perspective. I wonder then why pre-fabricated homes (e.g. https://www.profab.ca/en/) never really took off?
Re:Why are there no startups in the real estate construction... by 015UUZn8aEvW on Friday July 07, 2023 @09:15AM (#36631263)
Typically these are called "modular homes" in the US. They've been around for quite a while and do make up a certain portion of the new home construction, though not the majority.

This approach is not quite as efficient as it initially appears:

First, it does nothing for the site construction (grading, excavation, utilities, paving, septic, well, etc.) Those tasks, which make up a decent portion of the project, are done in exactly the same way as in conventional construction.

Second, the modular boxes are either A) the width of shipping containers, which severely constrains the house layout, or B) somewhat wider than shipping containers, which makes them oversized loads that require escort vehicles, highway permits...increasing cost.

Third, you have to hire a crane to set the boxes, and then make all of the connections between the boxes, and install various mechanical and electrical components, complete the finishes, install staircases, etc. This costs quite a bit and still involves the hiring of various local subcontractors, just like in conventional construction.

When you add everything up, modular sometimes saves a little money and often reduces the project timeline (unless there are delays at the factory). But it's not a massive improvement, which is why modular hasn't taken over everything.

Re:Why are there no startups in the real estate construction... by notfromhere on Friday July 07, 2023 @09:07AM (#36631150)
They depreciate in value like a car and have a stigma associated with the poor
Re:Why are there no startups in the real estate construction... by 015UUZn8aEvW on Friday July 07, 2023 @09:21AM (#36631336)
That is true of "manufactured homes", a.k.a. "trailers", but not of "prefab" or "modular" homes, which are built using the same components as conventional homes.
Re:Why are there no startups in the real estate construction... by LegitShady on Friday July 07, 2023 @12:02PM (#36633725)
They're the same components but not. If you would frame a building and then build the wall assemblies traditionally your ability to integrate parts of the structure and seal it is different than when you put together assemblies and try to seal the thick boundaries between them. You also don't have any quality control - whatever shows up on site is installed.
Re:Why are there no startups in the real estate construction... by kasey_junk on Friday July 07, 2023 @09:50AM (#36631750)
The loan to buy them also isn’t dramatically subsidized by the government and turning them into real property is a legal pain.
Re:Why are there no startups in the real estate construction... by pclmulqdq on Friday July 07, 2023 @11:35AM (#36633335)
All house structures depreciate in value over time. The land they sit on is what appreciates, usually dramatically more than the depreciation of the structure. The prefabs associated with poverty are prefab structures on rented land, so the only thing you own is the depreciating structure, not the appreciating land.
Re:Why are there no startups in the real estate construction... by rgmerk on Friday July 07, 2023 @09:12AM (#36631230)
It’s interesting - in Sweden, the vast majority of new homes are apparently prefab [1].

Aside from customer expectations for customizability in the US (and other countries) I believe regulations also contribute, with prefab homes actually requiring more robust construction than conventionally built homes.

[1] https://builtoffsite.com.au/emag/issue-05/sweden-became-home...

Re:Why are there no startups in the real estate construction... by mavhc on Friday July 07, 2023 @09:47AM (#36631695)
Does that make them cheaper/better?
Re:Why are there no startups in the real estate construction... by rgmerk on Friday July 07, 2023 @04:50PM (#36638121)
Sorry, to clarify, I think US regulations require this, with the net result that prefab becomes more costly than conventional construction in the USA.