Propmodo Daily

By Holly Dutton · Mar. 15, 2024

Greetings!

Despite technological advancements in many sectors, the construction of houses has remained largely unchanged for decades. But, 3D printed houses present an exception to this trend. This revolutionary idea of printing a house by extruding concrete line by line has given us hope for a new, faster, and more cost-effective way to build homes, potentially helping us meet our housing needs. While doubts persist about the scalability of 3D printing for constructing houses, the world's first multi-story 3D printed building, as discussed in today's email, offers hope that this technique will be more than just a novelty and will contribute to increasing our housing stock.

Also, today, we’re taking a closer look at California-based Irvine Company. Despite challenging office market conditions, they boast 90+ percent office portfolio leasing rates. Their success stems from updating properties and offering flexible workspaces. At many of their properties, you’ll find amenities like healthy food options, gyms, and outdoor spaces. This strategy, coupled with a tenant base less inclined to cut office space, is driving their outperformance in a troubled sector.

Finally, be sure to check out Propmodo Technology‘s focus on multifamily tenant experience. Our spotlight is made possible with the support of Amenify, which has recently unveiled the Multifamily Ancillary Income Report.

Now, let's dig in!

3D Printing Isn’t Just for Single Story Homes Anymore

Remember when desktop 3D printers first came out, and the possibilities of what could be created with them seemed endless? It's been 15 years since those early days when MakerBot splashed onto the scene with its printing technology. However, the concept of at-home 3D printing didn't become as popular as many had thought it would. But this same printing technology has made inroads as a way to create single-family housing. The concept took another huge step this week when one of the leading 3D printing construction companies announced a new technology that can make multi-story buildings. It's not the first company to have the ability to print structures with multiple stories, but it does symbolize the progress companies are making in the space and, more importantly, another potential solution to the housing crisis.

ICON, one of the largest 3D printing companies in the world, announced that it has created a 3D printer that can produce fully enclosed, multi-story structures using a low-carbon mixture. The Texas-based company announced during a panel session—which WeWork co-founder Adam Neumann and starchitect Bjarke Ingels reportedly attended—at the annual SXSW conference this week in Austin. The company's new Phoenix printer, which was displayed during the talk, is a 75-foot tall robotic arm that resembles a construction crane and can build multi-story homes up to 27 feet tall with enclosed systems. ICON said it is working on a prototype building near its headquarters in Austin that will have a "dome-like" enclosed roof.

A quick Google search for "3D printed homes" reveals endless headlines questioning whether 3D printed housing could solve the housing crisis. Indeed, any innovative method that drastically reduces the time it takes to build housing lowers the cost and manages to bypass all the challenges that traditional construction faces, which is welcomed with open arms by city officials and housing advocates. The U.S. is desperate for more ways to build housing, and this has been seen as holding a lot of promise. But could it really work? 

The two biggest advantages of 3D-printed housing are cost and time. When it comes to cost, using 3D printing to construct houses can cut typical construction costs nearly in half, according to the World Economic Forum. That's because, unlike traditional methods, 3D printed construction typically requires just a handful of people on site, which cuts down labor costs and doesn't use the same kind of expensive materials. In terms of time, printing out a concrete structure takes much less time than traditional construction. The first multi-story 3D-printed structure to be built, a home in Houston, was constructed in 330 hours, which equates to about two weeks. If the process took place over 12-hour days, it would mean 27 days from start to finish.

3D-printed homes are popping up around the country and the world. Habitat for Humanity is building a 3D-printed home in Arizona, and one of the largest projects is a 100-home community outside of Austin that's being built by ICON in partnership with the major home builders Lennar and Bjarke Ingels. Even Dubai is getting in on the technology. But it's still a new industry that doesn't yet have regulatory standards, and with its new technology, it raises a lot of questions about what effect it could have on the traditional construction industry workforce, supply chains, and potential intellectual property and legal violations.

3D printing is an exciting industry that continues to innovate. Right now, the latest technology has the ability to build up to two stories, but future advances could mean even taller buildings. Using 3D printing technology means a drastically reduced construction timeline and lower costs, two major advantages over the traditional construction industry. But it's still a new technology, and there aren't that many companies in the space. Even if it's faster, cheaper, and more sustainable, they'd likely have to get the same approvals and permits and go through a community review process. And even with a super promising method like this one, projects could get bogged down by bureaucracy and building codes that aren't up to date with the new construction method. There are also still not enough companies to start truly building housing at scale. Still, this latest news is a big step for 3D-printed housing, and it will surely build even more momentum for the industry.

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Propmodo Daily is written and edited by Franco Faraudo with contributions from readers like you and the Propmodo team.

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