The Future of Home Building Post-COVID-19

How Industrialized Construction is the Solution We Need

Across the world, construction projects of all kinds have been forced to pause or dramatically slow their process in response to the current pandemic. Construction requires a multitude of people working together in close proximity, something the coronavirus has mandated us to avoid. At Proto Homes, we have made safety our top priority. Both in our office and on our job sites, all employees wear CDC-approved face coverings at all times and take daily temperature checks. As some construction sites gradually begin to reopen, the pressure is on to find a balance between safety and productivity.

The imposed lockdown has dictated a new way of life for 2020. Many construction sites have seen significant drops in productivity, where a maximum of only 60% of workers are permitted to safely return to work under social distancing rules. Production on these sites is expected to drop 30% – 40%, extending project deadlines even further than before.

The effects of COVID-19 will undoubtedly last for some time, which leads us to question what the future of home building and construction will look like. We all must find ways to work around the new long-term challenges, something industrialized construction has proven to excel in.

A Viable Solution

Industrialized construction refers to any building method that moves past the standard, manual assembly process and relies on a more technology-driven production.

Unlike traditional homes, prefabricated houses from Proto Homes are assembled from components that have been pre-measured and cut in our factory. The components are then delivered to the site, where they somewhat resemble a LEGO® set ready to be pieced together. This process lowers the production cost of the house and accelerates the overall construction timeline.

Using prefab construction greatly simplifies the construction process, which also lowers the number of workers needed on a single project. With about 80% less labor required, site managers can ensure the safety of their workers amidst the ongoing pandemic.

Adopting a New Attitude

Many prefab housing companies already use Building Information Modelling (BIM), a new approach to construction that incorporates three-dimensional design applications, which can include information regarding components’ scheduling, cost, and lifecycles. Before COVID-19, the industry was slow to adopt BIM, despite its many advantages. Homeowners and builders preferred the physical reports and designs of traditional home construction. During the recent lockdown, however, BIM was more widely adopted when participants were unable to meet in person. Proto Homes implemented BIM early on and optimized our entire construction process, from design, to manufacturing, to on-site assembly, with a BIM platform. This new approach enables projects to continue in a virtual and digital environment and allows data to be shared across all parties involved. This data can then be fed into factory manufacturing systems to be measured and cut with exact precision. Factories also provide safer working environments that comply with CDC health guidelines, with static workspaces rather than movement across a vast construction site.

The Benefits of Prefabricating

Prefab construction also offers greater predictability than conventional home building, which routinely experiences delays and cost escalation due to unexpected hurdles. Home projects built with an optimized supply-chain system and factory-made components, similar to the approach at Proto Homes, more easily follow their expected timelines and rarely have to face delays from bad weather, low inventory, late deliveries, etc. With COVID-19-related challenges still in place, this predictability will prove to be extremely valuable in the case of ongoing lockdowns.

Prefab and the Pandemic

This reliability has proven to literally save lives with the construction of the Huǒshénshān Hospital in Wŭhàn during the early months of the coronavirus pandemic. Within just 10 days, workers successfully completed the 25,000-square-meter hospital thanks to prefabrication technology.

China has also turned to prefab construction for emergency housing complexes for coronavirus patients to safely and comfortably self-isolate. Three city blocks of apartment units in Hong Kong were completed from scratch in 77 days by architecture firm LWK + Partners. The temporary quarantine facility is comprised of 99 units with open-air corridors. Each unit is fitted for a single person, with one bed, wardrobe, desk, and bathroom. The air conditioning vents are even specifically placed around the buildings to prevent cross-contamination between residents. While China was initially slow to adopt prefab construction, the worldwide health emergency helped convince the nation it was the only solution. Since then, the Hong Kong government has now required some form of prefabrication to be included in all public construction projects.

Time to Look Back Before Moving Forward

China has also turned to prefab construction for emergency housing complexes for coronavirus patients to safely and comfortably self-isolate. Three city blocks of apartment units in Hong Kong were completed from scratch in 77 days by architecture firm LWK + Partners. The temporary quarantine facility is comprised of 99 units with open-air corridors. Each unit is fitted for a single person, with one bed, wardrobe, desk, and bathroom. The air conditioning vents are even specifically placed around the buildings to prevent cross-contamination between residents. While China was initially slow to adopt prefab construction, the worldwide health emergency helped convince the nation it was the only solution. Since then, the Hong Kong government has now required some form of prefabrication to be included in all public construction projects.

Our Affordable Housing Crisis

communities. Infection outbreaks are frequently tied to low-income areas of densely populated homes, many with multiple generations of the same family living together. It is a well-known fact Los Angeles has an extreme shortage of affordable housing. Los Angeles is short roughly 517,000 affordable homes that should be available to the city’s very low-income and extremely low-income households. In all of Los Angeles County, there are 52,765 homeless men, women, and children and one in every nine homeless people is a veteran. Lastly, Los Angeles County has seven of the top 10 zip codes with the worst overcrowded housing in the nation.

Unemployment rates and eviction notices due to COVID-19 could raise the state’s homelessness by 20% in the next few months. This would push California’s homeless population from 150,000 to more than 180,000.

Much like in Hong Kong, prefabrication could prove to be a valuable solution in this critical time. Proto Homes is actively seeking and working with industry partners to help solve our shortage of affordable housing in Los Angeles and to provide housing to those who desperately need it. In the middle of a pandemic, access to shelter and adequate sanitation infrastructure could be the difference between life and death.

Cracks in the Old System

Even without the effects of the current global health crisis, the conventional construction industry was already starting to show some faults. Construction is the largest industry in the world, representing 13% of the global GDP. In the past two decades, though, construction has seen a productivity growth of only 1% annually. Industry projection experts at world renowned global management consulting firm McKinsey & Co. predict that seven key influences will severely alter the construction industry in the next few years: sustainability requirements, cost pressure, skills scarcity, new materials, industrial approaches, digitalization, and a new breed of industry player.

Change to Come

These factors are set to transform the industry value chain and McKinsey & Co. forecasts the COVID-19 crisis will accelerate this change even more, completely transforming the industry in five to 10 years. Signs of change have already begun, with the permanent-modular-construction market share of new North American real estate construction having grown by 50% from 2015 to 2018. Industry projection researchers at McKinsey & Co. distributed a survey to 400 fellow management leaders regarding their predictions for the future market, where two-thirds of survey respondents agreed COVID-19 will only help accelerate this dramatic transformation, and half had already raised investment in relation.

This year has brought us many changes and has forced us to accept a new normal. Many of these challenges halted our way of life, but some have paved the way for new opportunities. We adapted and found new approaches. The construction industry was due for a renovation and perhaps the dramatic shift this year brought us was the key for us to realize it. The prefab industry has already begun shaping an innovative way of business for the rest of the market to follow, which it likely will in the near few years. This year has been a wake-up call that anything could happen, and the world is constantly reshaping and transforming. When given the opportunity to change for the better, we must act on it.

Our history has constantly been shaped by the problem-solvers who are brave and creative enough to leave an impact. When presented with an issue, they work to find a solution. In many ways, our business model is similar to that of the Ford Model T. In 1908, Henry Ford was determined to break the notion that cars were reserved for the wealthy and strived to make his cars more affordable and accessible to everyone. Rather than compromising on quality to lower the price, though, Ford reimagined his factories and found revolutionary ways to increase his efficiency and productivity.

Modern, luxury homes have historically been seen as inaccessible to the average homeowner and something only the ultra-rich could afford. Proto Homes believes in the democratizing of housing, making it accessible to all. Our patented Core infrastructure and prefabrication technology allow us to control project costs, while still delivering high quality homes. Expanding beyond homes, we now also offer our services in producing Accessory Dwelling Units (ADUs). In the past few years, ADUs have become increasingly popular as a way to add value to a home and to add an affordable housing option to the market. The Affordable Housing Task Force identifies ADUs as a viable opportunity to expand the housing stock and alleviate the growing homelessness rates in Los Angeles. In 2018, LA County government officials even announced they will pay homeowners to build or renovate existing ADUs on their property to contribute to the affordable housing market, with up to a $75,000 grant to construct a new unit.

Proto Homes is working towards a better future. We know the actions of today will shape the outcome of tomorrow, which is why we are constantly working to find new ways to revolutionize the housing market. To get involved in reshaping the industry, email sales@protohomes.com or visit www.protohomes.com/contact-us/ and click “Get Started” to sign up for one of our weekly webinars to learn more about our process.

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