Innovative Technology Can Help Affordable Housing Project Budgets Do More

nexus live Jan 18, 2023

While tech companies may not have the means or resources to build enough new homes to solve this housing affordability crisis, they can have a tremendous impact on helping to reduce the cost of developing affordable housing. Recent advances in construction and design technology can help to address the affordable housing crisis by improving the quality and reducing the cost of projects.

Michael Johnson gives an insightful TEDx Talk where he shares "The Best Kept Secret in Construction," where technology and advanced construction techniques can reduce housing costs and increase efficiency. Michael Johnson is an architect turned construction contractor specializing in Building Information Modeling (BIM), a 3D modeling technology that visualizes, coordinates, and troubleshoots a building before putting a shovel in the ground.

The Affordability Barriers (to building more affordable housing)

Michael suggests the construction industry is in the "golden age," with tools and techniques that can drastically reduce cost, and waste, and speed up production, eliminating barriers that help housing stay affordable.

There are various reasons why affordable housing is complex, and thus expensive to develop - which is the perfect recipe for turning to proven design and construction tech solutions to reduce the costs of projects. Here are four primary cost drivers that technology can address:

Controlling costs is challenging on projects that often take several years to develop before the project can be constructed.
- BIM (Building Information Modeling): BIM offers a comprehensive digital representation of an affordable housing project, integrating various aspects such as design, engineering, and construction. BIM can facilitate improved collaboration among stakeholders, streamline decision-making, and reduce design errors. Ultimately, this can lead to cost savings, faster project delivery, and better quality affordable housing.
Developing the scope of a project can be challenging, as many affordable housing projects are urban infill or adaptive reuse projects.
- 3D Scanning: 3D scanning technologies can accurately capture and digitize existing site conditions and structures for affordable housing projects. This data can then be integrated into BIM or CAD systems to help inform design decisions and identify potential issues. By streamlining the design process and minimizing errors, 3D scanning can contribute to cost savings and improved project outcomes.
- VR (Virtual Reality): VR technology can provide immersive, interactive experiences that allow stakeholders to visualize and explore affordable housing projects before they are built. By facilitating better understanding and communication of design intent, VR can lead to more informed decision-making, fewer design revisions, and improved overall design quality. This can help minimize construction costs and delays. Additionally, VR/AR modeling can provide low-cost barrier-breaking opportunities to involve constituents and future tenants in the project development process, which is a key aspect of community relations on any sizeable housing project.
Affordable Housing projects often require accessibility and supportive services improvements, which can add complexity and cost to projects.
- Drone Imagery: Drones can capture high-resolution aerial imagery and data of construction sites, providing valuable insights for affordable housing development. This technology can help identify site constraints, monitor construction progress, and ensure quality and safety standards. Drone imagery can also reduce the need for manual site visits, resulting in time and cost savings. Drone surveys can help identify critical site information to ensure accessibility requirements can be achieved for the project.
- CAD (Computer-Aided Design): CAD enables the creation, modification, and optimization of accurate 2D and 3D designs for affordable housing. By using CAD, designers and architects can efficiently iterate and refine housing designs, identify potential issues early on, and optimize material usage. This can result in reduced construction costs and more efficient use of resources. Many cities and counties will allow for reuse of permitted designs over a period of time, which also allows for successful designs to be reused on future projects, saving valuable time and money on the project.
Funding for Affordable Housing Requires Complex Project Development Proposals and is Highly Competitive
- Project Management Software (Oracle Unifier, Procore, Primavera): These software solutions facilitate efficient planning, scheduling, and management of affordable housing projects. By centralizing data and streamlining communication among stakeholders, these platforms can help minimize project delays, reduce administrative overhead, and improve overall project outcomes. They also offer powerful reporting and analytics features, enabling data-driven decision-making and better resource allocation, ultimately leading to cost savings in affordable housing development and construction.
- Project Drawing Management Tools (Plangrid, Skysite): These tools provide a centralized and accessible platform for managing construction drawings, blueprints, and documents related to affordable housing projects. By simplifying the process of sharing, reviewing, and updating project drawings, these tools can improve collaboration among stakeholders, reduce errors, and minimize rework. They also enable real-time access to the latest project information, ensuring all team members are working from the most up-to-date plans, which can contribute to time and cost savings in affordable housing construction.
- Project File Sharing Solutions (MS SharePoint): Microsoft SharePoint offers a secure and reliable platform for storing, organizing, and sharing project files and documents related to affordable housing development. By providing a centralized repository for project information, SharePoint can improve collaboration among stakeholders, streamline communication, and enhance project transparency. Its robust version control, permission management, and search capabilities can help reduce the risk of errors, prevent data loss, and save time and effort, ultimately contributing to more efficient and cost-effective affordable housing projects.

Can New Construction Technology Help With Affordable Housing?

Michael suggests that new technologies and practices make construction faster and less expensive than ever. BIM, VR technology, and wearables can allow developers and stakeholders to walkthrough buildings while simultaneously coordinating building plans, identifying potential problems, and reducing rework, which can contribute to the increased cost of building.

Advanced construction techniques such as modular buildings and prefabrication of entire structures can reduce overhead costs and allow rents to go down by combining these various technologies. Modular building is a simple concept typically reserved for commercial buildings and is becoming more available for homebuilding projects. Affordability, accessibility, and sustainability are just a few benefits of modular buildings that can contribute to affordable housing solutions.

Another technology that could revolutionize affordable housing construction is 3D printing. This technique is cost-efficient, eco-friendly, and has a significantly shorter building time than traditional construction. The phenomenon of building entire neighborhoods with this method has already provided quick, affordable housing for thousands of low-income Americans in Austin, Texas, spearheaded by homebuilding developers Lennar and ICON. While they would not disclose the entire project's cost, the construction firm specializing in 3D-printed structures hopes to continue innovating affordable housing solutions.

Innovations in Housing Construction

The Bipartisan Policy Center recently hosted a webinar “Getting Serious About Housing Supply: Supporting Construction Innovations to Drive Down Costs" to examine innovations that can lower the cost of building houses.

Multiple speakers emphasized how digital fabrication allows companies to mass-produce homes that could be customized for individual families. In addition, wall panels and roof structures can be built offsite and delivered to the site for panelized assembly.

The Tallwood Design Institute has collaborated with the University of Oregon and Oregon State University to develop mass plywood panels that can be used as a less expensive alternative to timber to create affordable prefabricated homes. One of the institute's pilot projects is near Portland, Oregon, and will feature 34 two-bedroom units made from mass plywood panels. The institute is also using this technology to retrofit existing affordable housing, which could improve its energy efficiency with minimal disruption to existing residents.

The Road Ahead

The construction industry is indeed experiencing a "golden age" of innovation, with cutting-edge tools and technologies that have the potential to revolutionize affordable housing development. By addressing the complex challenges faced in developing affordable housing projects, these technologies can significantly reduce costs, minimize waste, and expedite project delivery.

The integration of BIM, 3D scanning, VR, drone imagery, CAD, and various project management tools enables stakeholders to collaborate effectively, optimize designs, streamline communication, and enhance decision-making processes. By leveraging these advanced technologies, the affordable housing sector can overcome traditional barriers, ultimately providing quality, accessible, and sustainable housing for communities in need. Embracing this digital transformation is essential in shaping the future of affordable housing and fostering more inclusive and thriving communities.

The InflectionPoint Approach

InflectionPoint Design + Development Group is committed to innovative construction technology solutions, and finding opportunities to improve project success through incorporating leading-edge solutions, especially in affordable housing projects, and all housing projects in general. Our partners at Virtual Construction Consulting/VRVC, a San Francisco-based construction management consulting company, are regional leaders in BIM modeling, virtual design & construction coordination, and drone/360 project progress videography and photography.

InflectionPoint and VRVC are currently teaming up to support Johnstone Moyer, Inc. with BIM coordination and exterior envelope constructability review to proactively resolve coordination issues, and mitigate risks for change order costs during construction. Our collective efforts helped to identify numerous potential design conflicts between the structural, mechanical, plumbing, electrical, and exterior waterproofing and cladding systems. We estimate our professional solutions helped our clients to avoid 5-10X the cost of our services, and proved to be an invaluable investment to improve the performance of their project team, and project outcomes.