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5 trends that are disrupting the new home construction industry

Trends in new home construction

The new home construction industry is long overdue for disruption. Finally, it appears the time is now. In the past few years we have started to see several trends emerge that are the beginning of what promises to be significant change in the new home construction industry.

These trends are impacting a wide range of stakeholders in new home construction including builders, suppliers, lenders and consumers. Here are 5 of the trends set to disrupt the home building industry.

Green design.  Green design isn’t new but it is becoming mainstream. Technology advancements continue to improve and expand the ways in which green design is making its way into new homes. This trend is fueled by consumer demand and building regulations as well as the benefits and marketing opportunities that come with LEED certification. LEED (Leadership in Energy and Environmental Design) is the most widely used green building rating system in the world. When built to meet LEED requirements, a building will offer occupants and the community a more healthy and efficient structure which can also lead to cost savings. LEED certification is a globally recognized symbol of sustainability achievement.

Building information modeling. This is a tool set to increase collaboration in a way that is unprecedented. BIM (Building Information Modeling) is a technique that uses computer representations of roads, buildings and utilities. The system is mainly used to estimate what a project will cost and its structural integrity over time. BIM is also meant to reduce production costs while promoting a faster and safer building process. The system is on its way to becoming a requirement for builders as part of the building code.

AI to predict loan defaults. AI (Artificial Intelligence) is being used to improve risk assessment in the new home construction industry. AI models are used to analyze massive amounts of historical data to predict loan defaults. By predicting loan defaults, AI technology can increase the efficiency of the risk assessment process. This information can be used by builders and lenders to avoid ventures that are less profitable and instead focus on properties that promise the greatest return.

Improved safety equipment. Construction work has always been associated with accidents that in some cases turn fatal. With more and more smart equipment coming into use, the industry is becoming much safer for workers. For instance, you now have ‘smart’ construction boots fitted with transmitters that show the location of a worker. Such boots will show whether the worker is trapped in a dangerous area of the construction site or is moving slower due to fatigue. Cooling vests and fabrics that absorb moisture have also improved in quality, improving the comfort and health of workers.

Using drones at the new home construction site. This is arguably one of the hottest trends to hit the construction industry in a long while. Drones outfitted with thermal imaging and sensor technology are being used to deliver quantifiable data about materials, processes and personnel on site.


The new home construction industry is long overdue for disruption. There are many exciting changes and new technologies poised to disrupt this crucial part of the U.S. economy. These changes are wide-reaching and are ready to improve not only the design and construction of structures but also the health and safety of workers.

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