A recent WSJ article reported that the disproportionate gains in labor productivity in recent years have affected a small percentage of companies. They write that, “the most productive 5% of manufacturers [in all sectors] increased their productivity by 33% between 2001 and 2013, while productivity leaders in services boosted theirs by 44%.” During that same period, “all other manufacturers managed to improve productivity by only 7%.”
According to the Organization for Economic Cooperation and Development, the reason for the disparity is what they call diffusion—i.e. innovation and talent are being consolidated by the largest players and not diffusing to the smaller ones.
The market reach and pocket depth of giant multinational corporations—Amazon, Google, Apple, IKEA, Toyota, etc.—enable them to attract top human capital and make large technological investments. These resources create a nearly-insurmountable innovation gap for their smaller competitors and upstarts. In fact, the number of first-round VC financing was down 22% in 2017 versus 2012, and many attribute this to the dominance of companies like Amazon and Google. Investors might be asking why bother competing when the big guys will create a superior product in-house? Continue reading “Can there be an Amazon of housing?”
If you have an hour to fill and are interested in the intersection of design and affordable housing, you could do a lot worse things than watch this talk at Harvard’s School of Design’s Reframing Housing from a few weeks ago (below). The panelists represent some of my favorite designy, affordable projects of the last decade or so. Each represents a way to develop in a different urban (or non-urban) condition and all the considerations that condition entails. All are worth knowing about if you don’t already.
From Philly, there was architect Brian Phillips. His shop, ISA, has done of a ton of cool infill projects that incorporate a variety of cost-saving, energy-saving, design-savvy stratagems for affordability. ISA is the design force behind Postgreen homes, makers of the 100k house, a LEED platinum townhouse in Philly’s East Kensington neighborhood that was built for $100/sf. Postgreen—powered by ISA—has done a bunch of similar project with names like Awesometown and Avant Garage.Continue reading “Affordability is the freaking amenity”
“The machines will never replace the human,” Jeff Buczkiewicz, president of the Mason Contractors Association of America, told the NY Times regarding the role of robotics and masonry. Jeff was speaking to the Times at the Spec Mix Bricklayer 500 bricklaying competition (who knew, right?), where fast-handed masons race to build high-quality walls in the least amount of time.
Also at the competition was SAM, a $400k bricklaying robot by Construction Robotics. SAM was slower than the humans (who could lay 7-9 bricks/minute) and didn’t have the “human element” Buczkiewicz claims is necessary to lay down bricks—elements like opioid addiction and onsite deaths, we assume. Nevertheless, the Times wasn’t so convinced the masons are safe from the robots.
The “I” in the RFI is a brain-dump from “market participants,” explicating how modular will work in a variety of multifamily settings throughout the boroughs. The RFEI “invites expressions of interest for modular affordable housing construction on private sites within the five boroughs,” with the aim of expediting “the pre-development process” for successful RFEI respondents. These preliminary steps will be shortly followed by an RFP for a project built on city lands. Continue reading “NYC gets mod complex”
Robbie Antonio is a Filipino self-portrait collector, Trump friend, and real estate mogul (or the scion of one…not clear). He’s also the dude behind Revolution Pre-crafted Properties, a company offering design-y prefab homes that can supposedly be shipped anywhere in the world. Their portfolio features designs from starchitectural offices such as Libeskind Design and that of Jean Nouvel.
RRP is now getting in the city-building business with a development called “Batulao Artscapes.” BA will be “The World’s First Livable Art Park” (we know how many people want to live in art parks).
BA sits on 346 acres 50 miles outside Manilla away from any coasts. It will, according to CNN, feature “12 different styles of [factory-built] home[s] set across four ‘villages.’….residents can choose from prefabs designed by notable creatives, from artist David Salle to the musician-turned-interior-designer Lenny Kravitz.”
So far as we know, this is the largest prefab development ever conceived. The project’s ambitions are only matched by the number of unanswered questions we have: ones like who, in a country with a per capita GDP of $3K, is going to buy funky modernist homes costing $50K-$1M (USD) set Florida-retirement-community-style in the middle of a jungle?
With a completion date said to be in 2020, our questions may soon be answered.
Alphabet/Google came out guns blazing last year with the announcement of Quayside, a planned city-within-a-city (Toronto) whose technological infrastructure will put Masdar City and Agrosanti to shame. According to The Atlantic’s Laura Bliss, Quayside will have a “self-contained thermal grid” with recirculating energy, carless sections, autonomous transit shuttles, convertible modular buildings, and much, much more.
Sounds dope. But there’s another aspect that’s less dopey: “a data-harvesting, wifi-beaming ‘digital layer’” covering the city. This layer is ostensibly designed to improve urban UX, but Bliss asks, “But to whom, and how, would this data be made available? And what would such an arrangement mean for any Quaysider who doesn’t wish to be monitored?” In other words, would you want Google or former Toronto mayor Rob Ford’s administration to know your every move? Would Ford have wanted anyone knowing any of his every move?
Lest we get too worked up about the whole deal, let’s remember building cities is hard—even within existing cities (just ask Tony Hsieh). Sidewalk Labs—Alphabet’s urban lab helmed by city-hating CEO Dan Doctoroff—has pledged $50 million to Quayside. That should cover a four-story mixed use building, and maybe a bus stop. The rest of the funds will likely come from private developers, who will no doubt make the Sidewalk project more pedestrian.
Any way you look at it, using cities-as-data-mines will be a big deal in the coming years for cities new and old alike. Expect many questions in this realm as well as a growing focus on how data harvesting affects real estate valuation.
Last week was NAHB International Builders Show (IBS) in Orlando, Florida. Per tradition, the show builds The New American Home (TNAH), an offsite showcase for the latest and greatest in single-family home design and construction.
This year’s entry put the “NAH” in TNAH (it’s also like real estate’s case of IBS…so many puns to choose from). The 6,533 square foot “Tuscan” five bedroom behemoth featured two double garages and a master bathroom suitable for bathing at rhinoceros. Read Treehugger’s Lloyd concise takedown of this monstrosity.
The house is a sad commentary on the mindset of American builders.
Single-family housing is still the main type of American housing, making up 76% of the housing stock. And there’s a huge deficit of low-and-mid-market new housing. Harvard reported last year that “Between 2004 and 2015, completions of smaller single-family homes (under 1,800 square feet) fell from nearly 500,000 units to only 136,000. Similarly, the number of townhouses started in 2016 (98,000) was less than half the number started in 2005.”
This deficit at the middle and bottom exacerbate an already-bleak housing situation. And while there are intermittent signals that builders are interested new, modest models of single-family housing, the TNAH shows that, despite its bad press, the McMansion is alive and well.