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Disruption is Coming to the Housing IndustrySam RashkinRetooling the U.S. Housing Industry
2012 2014 2020
Basis for Presentation
Retooling Executive Workshops/Boot Camp:
• Vetting• Feedback• Ongoing Research
Lectures
Disruption Happens
Fifth Ave. Easter Parade, NYC - 1903 Fifth Ave. Easter Parade, NYC - 1913
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DisrupterWorld’s Largest
Ownership
Uber Taxi Company No Vehicles
Facebook Media Company No Content
Alibaba Retailer No Inventory
AirbnbAccommodation
ProviderNo Real Estate
TBD in ~3 YearsHome Building
CompanyNo Construction
Disruption Happens
• 3 New Realities
• 5 Housing Crises
• 3 Housing Disruptions
The Path to Housing Disruption
Housing New Reality
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• Younger Buyers
• Age of Acceleration
Housing New Reality
• Informed Homebuyers
“Millennial demand for homeownership was one of the biggest trends influencing the housing market in 2018. This is unlikely to reverse going into next year, the year after that, and many years to come.”Odeta Kushi, senior economist for First American
Younger Buyer Pent Up Demand
Housing New Reality Younger Buyers Age of Acceleration Informed Buyers
Younger Buyer Pent Up Demand
Source: “Where are the Millennials Buying Homes? – 2018 Edition,” Derek Miller, Smart Asset, January 26, 2018
• No big city cracks the top ten where millennials are buying homes
• Across 200 largest cities, only 18 saw millennial home‐ownership rate increase from 2007
Housing New Reality Younger Buyers Age of Acceleration Informed Buyers
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60% expect to live in detached single‐family home within five years
75% plan to get married which has historically driven suburbanization
~$200 Billion purchasing power currently that will increase as the generation ages
~50% of the global workforce by 2020Source: “Three Myths About Millennials that Impact Commercial Real Estate,” Nick Romito, Realcom Advisory, Vol. 17, No. 28, June 12, 2017 and ULI survey
Younger Buyer Pent Up Demand: Millennial Data
Housing New Reality Younger Buyers Age of Acceleration Informed Buyers
Younger Buyer Pent Up Demand Out of the City
Housing New Reality Younger Buyers Age of Acceleration Informed Buyers
• Huge Debt
• Sharing Economy
Younger Buyer Reality
• Delayed Commitment
• Job Volatility
• Crash Experience
• Experiences vs. Savings
• Wage Stagnation
Housing New Reality Younger Buyers Age of Acceleration Informed Buyers
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Younger Buyer Reality: Huge Debt
$1.48 Trillion Student Loans
44.2 Million Americans
11.2% Student Loan Delinquency Rate
$351 Average Monthly Loan Payment (20-30 years old)
Source: “A Look at the Shocking Student Loan Statistics for 2018,” Student Loan Hero, May 1, 2018, https://studentloanhero.com/student‐loan‐debt‐statistics/
Housing New Reality Younger Buyers Age of Acceleration Informed Buyers
Younger Buyer Reality: Huge Debt
Source: College Board (dollars inflation‐adjusted to 2016)
+250%
Housing New Reality Younger Buyers Age of Acceleration Informed Buyers
Younger Buyer Reality: Huge Debt
+50%
Source: U.S. Census Bureau
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Younger Buyer Reality: Wage Stagnation
Source: U.S. Census Bureau (dollars are inflation‐adjusted to 2016)
+0%
Source: U.S. Census Bureau (dollars inflation‐adjusted to 2016)
Housing New Reality Younger Buyers Age of Acceleration Informed Buyers
A staggering 74 percent of Americans prioritize experiences over products. The focus on experiences is closely related to the growth of the sharing and experience economy.
Younger Buyer Reality: Experiences vs. Savings
Housing New Reality Younger Buyers Age of Acceleration Informed Buyers
While 27% of US online adults report using at least one sharing service in the past six months, Millennials’ usage rate
is more than quadruple that of Boomers.
Younger Buyer Reality: Sharing Economy
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Younger Buyer Reality: Delayed Commitment
+150%
Source: Pew Research Center analysis of the 1960‐2000 decennial censuses and 2010 and 2016 American Community Survey (IPUMS)
Housing New Reality Younger Buyers Age of Acceleration Informed Buyers
Younger Buyer Reality: Job Volatility
Housing New Reality Younger Buyers Age of Acceleration Informed Buyers
How job predictions apply to 2016 U.S. employment statistics. Black fields are jobs likely to be automated and white fields are jobs that are likely to remain.
Robots will take over half of today’s jobs in 10-20 years
Sources: U.S. Bureau of Labor Statistics; Frey & Osborne, The Future of Employment, 2013
Younger Buyer Reality: Job Volatility
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“ Looking to the future, 65% of
children at school today will work in
jobs that do not yet exist.”Source: U.S. Department of Labor, 2013
Younger Buyer Reality: Job Volatility
Housing New Reality Younger Buyers Age of Acceleration Informed Buyers
“People are realizing that houses are not necessarily the best places to store wealth.”Michael Cook, Operations Chief, Streetlane Homes
Source: “Meet Your New Landlord: Wall Street,” Ryan Dezember and Laura Kusisto, Wall Street Journal, July 21, 2017
Younger Buyer Reality: Crash Experience
Housing New Reality Younger Buyers Age of Acceleration Informed Buyers
Younger Buyer Reality: Crash Experience
-20%
Source: U.S. Census Bureau
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1. If it [a better experience] can be done, it will be done.
2. If you don’t do it [a better experience], someone else will.
* Daniel Burrus, “Flash Foresight”
Acceleration Rules
Housing New Reality Younger Buyers Age of Acceleration Informed Buyers
• Data;
• Software; and
• Technology
That Deliver a Better Consumer Experience
Acceleration Drivers
Housing New Reality Younger Buyers Age of Acceleration Informed Buyers
“Accelerating rate of change…will disrupt catastrophically every aspect of every industry…
—except for those who see it coming.”Daniel Burrus, “Flash Foresight”
Acceleration Reality
Housing New Reality Younger Buyers Age of Acceleration Informed Buyers
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Imaging• Kodak• Polaroid
Phones• Motorola• Nokia
Transport• Taxis• U.S. Cars
Retail• Retailers• Malls
Acceleration Graveyard
Housing New Reality Younger Buyers Age of Acceleration Informed Buyers
Frequently or Occasionally Search Web Before Buying Homes
71%77% 79% 80% 84% 87% 90% 89% 88%
92%90%
Source: National Association of Realtors®
Homebuyers Searching Web First
Content
Housing New Reality Younger Buyers Age of Acceleration Informed Buyers
Plymouth University psychologists 2014 study showed that householders who received thermal images of their homes were
4.9 times more likely to install draught proofing than those just presented
with an energy audit
Homebuyers will know… Good and Bad Enclosures
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Homebuyers will know… Insulation DefectsHousing New Reality Younger Buyers Age of Acceleration Informed Buyers
Homebuyers will know… Air Leakage Defects
Housing New Reality Younger Buyers Age of Acceleration Informed Buyers
Homebuyers will know… Advanced WindowsHousing New Reality Younger Buyers Age of Acceleration Informed Buyers
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Homebuyers will know… Leaky WindowsHousing New Reality Younger Buyers Age of Acceleration Informed Buyers
Homebuyers will know… Moisture DefectsHousing New Reality Younger Buyers Age of Acceleration Informed Buyers
Homebuyers will know… Healthy LivingHousing New Reality Younger Buyers Age of Acceleration Informed Buyers
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Homebuyers will know about… True ComfortHousing New Reality Younger Buyers Age of Acceleration Informed Buyers
Homebuyers will know about… Smart PlumbingHousing New Reality Younger Buyers Age of Acceleration Informed Buyers
Homebuyers will know about… Quality Lighting
Housing New Reality Younger Buyers Age of Acceleration Informed Buyers
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Homebuyers will know about… High-Tech Convenience
Housing New Reality Younger Buyers Age of Acceleration Informed Buyers
Homebuyers will know about… Aging Homes
Median Age of Owner‐Occupied Homes in U.S.
1985 1990 1995 2000 2005 2010 2015
40
30
20
10
2327
31
38
Source: HUD, American Housing Surveys
Housing New Reality Younger Buyers Age of Acceleration Informed Buyers
TruHomeFAX™: Report – Summary
Report for 6207 Sudley Church Ct., Fairfax Station, VA 22039 Prepared March 4, 2017
Based on the information provided and general cost assumptions, this home is estimated to have the following costs and grades associated with the five key risks of home ownership.
For more information CLICK HERE
10‐Year Cost Assessment
Low High GradeMonthly Cost to Maintain
$108,000 $199,000 B‐ $900 – $1,700
Interior Systems Exterior Report Summary
Based on the information provided, research data, and cost assumptions, this home is estimated to have the following costs and grades based on three key maintenance costs.
>
Homebuyers will know… Added Cost of Older Homes
Housing New Reality Younger Buyers Age of Acceleration Informed Buyers
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Homebuyers already know… Poor Energy Efficiency
Source: The Housing Satisfaction Gap: What People Want but Don’t Have, Demand Institute, 2014
71%think it’s important
35%satisfied with current home
36%Satisfaction Gap
“very energy efficient with low monthly utility costs.”
Housing New Reality Younger Buyers Age of Acceleration Informed Buyers
Homebuyers will know about… Relative Energy EfficiencyHousing New Reality Younger Buyers Age of Acceleration Informed Buyers
Homebuyers will know… The Excitement of ZeroHousing New Reality Younger Buyers Age of Acceleration Informed Buyers
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Monthly Utility BillSavings
AddedMonthly Mortgage
Lower True Cost
Monthly Utility BillSavings
Lower True Cost
Homebuyers will know about… True Cost of ZeroHousing New Reality Younger Buyers Age of Acceleration Informed Buyers
Hurricane Harvey Aftermath: Houston, TX
Homebuyers will know about… Disaster RisksHousing New Reality Younger Buyers Age of Acceleration Informed Buyers
Homebuyers will know about… Disaster Risks
The states that are most in harm's way are California, Florida, New York, New Jersey and North Carolina, while the metros with the most risk include New York City, Los Angeles, Miami, Houston, and the Riverside-San Bernardino area of California.
43% of U.S. Homes with an Estimated
Market Value of $6.6 Trillion in Counties with High Natural Disaster Risk
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Homebuyers will know… Disaster Protection is Harder
Insurers refused to renew thousands of polices in fire areas after a wildfire disaster
Housing New Reality Younger Buyers Age of Acceleration Informed Buyers
Homebuyers will know… Disaster Risk Affects Value
Flooding has erased nearly $7 billion in value for homeowners in New York New Jersey and Connecticut since 2005, a new study finds.
Housing New Reality Younger Buyers Age of Acceleration Informed Buyers
Source: American Planning Association, https://www.planning.org/research/postdisaster/briefingpapers/floodinsurance.htm
Homebuyers will know… Disaster Protection Saves
Housing New Reality Younger Buyers Age of Acceleration Informed Buyers
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Homebuyers will know… Disaster Protection Saves
13% ‐ 15%*
16% ‐ 19%*
6% ‐ 8%*
Housing New Reality Younger Buyers Age of Acceleration Informed Buyers
Homebuyers will know about… Certified PerformanceHousing New Reality Younger Buyers Age of Acceleration Informed Buyers
Homebuyers will know about… Consumer ReviewsHousing New Reality Younger Buyers Age of Acceleration Informed Buyers
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Homebuyers will know about… Consumer Builder ReviewsHousing New Reality Younger Buyers Age of Acceleration Informed Buyers
Homebuyers will know about… Consumer Builder ReviewsHousing New Reality Younger Buyers Age of Acceleration Informed Buyers
Housing New Reality Summary
Younger Buyers,
Age of Acceleration, and
Informed Homebuyers…
…are creating a
Consumer Experience Imperative.
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5 Housing Crises
• Supply
• Affordability
• Trades
• Productivity
The Five Crises in U.S. Housing
• Innovation
Historic Housing Shortage
Home construction per household a decade after the bust remains near the lowest level in 60 years of record-keeping, according to the Federal Reserve Bank of Kansas City.
Housing Crises Supply Affordability Trades Productivity Innovation
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Housing Starts per 100 Households 3-Month Moving Average
Source: Federal Reserve Bank of Kansas City
Housing Supply Has Not Recovered
Housing Crises Supply Affordability Trades Productivity Innovation
Source: Urban Institute American Community Survey, July 21, 2016
Over Supply
SupplyDemand
Shortage
Housing Supply Short 430,000 Units
Housing Crises Supply Affordability Trades Productivity Innovation
“Only 10 of the nation’s 50 largest metros has managed to create enough new housing to keep up with growth.”Source: https://www.curbed.com/2017/7/26/16033876/rent‐housing‐shortage‐jobs
Shortage in 80% of Largest Metros
Housing Crises Supply Affordability Trades Productivity Innovation
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Where We Live in the U.S.
11 Megapolitans contain 70% of U.S. Population in less than 20% of land area in 2008
Housing Crises Supply Affordability Trades Productivity Innovation
Where We Live in the U.S. is Unaffordable
Housing Crises Supply Affordability Trades Productivity Innovation
House Price to Income Ratio Not Sustainable
~3.5X~3X ~2X
The long used real estate agent and homebuyer rule of thumb is you can afford a house if its price is equivalent to roughly 2.6 years of your household income. That ratio is based on historical nationwide averages under healthy economic conditions.
Source: ‘Where the House‐Price‐to‐Income Ratio Is Most Out of Whack,’ Richard Florida, May 29, 2018, CityLab
Housing Crises Supply Affordability Trades Productivity Innovation
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Meet Your Buyers
Housing Crises Supply Affordability Trades Productivity Innovation
72% said affordability was the primary obstacle to buying a home
$1.3 trillion student loans by the end of 2016
20%+ of salaries go to student loan payments
Millennial Debt Crisis
Housing Crises Supply Affordability Trades Productivity Innovation
Nearly 70% have saved less than $1,000 for a down payment
About 40% aren't saving anything on a monthly basis
8 and 20+ years to purchase home in NYC and LA/San Jose respectively
Less than 30% can save enough for 10% down payment in next 3 years
Millennial Savings Crisis
Housing Crises Supply Affordability Trades Productivity Innovation
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Source: Census Bureau
< 1,600 sf
1,600 – 1,999 sf
2,000 – 2,399 sf
2,400 – 2,999 sf
> 3,000 sf
Affordable Housing Supply Crisis
Housing Crises Supply Affordability Trades Productivity Innovation
Declining U.S. Homeownership Rate
% U.S. Households That Own Homes
Source: ‘Meet Your New Landlord: Wall Street,’ Ryan Dezember and Laura Kusisto, Wall Street Journal, July 21, 2017
Housing Crises Supply Affordability Trades Productivity Innovation
200,000 Homes
Affordability Impact on Homeownership
Housing Crises Supply Affordability Trades Productivity Innovation
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Affordability Impact on Homeownership
Single-Family Homes Owned by Large Investors
200 thousand
150
100
50
0
Cumulative Total Since 2010
2010 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16Source: ‘Meet Your New Landlord: Wall Street,’Ryan Dezember and Laura Kusisto, Wall Street Journal, July 21, 2017
Housing Crises Supply Affordability Trades Productivity Innovation
Affordability Driving Historic Increase in Renting
Housing Crises Supply Affordability Trades Productivity Innovation
Affordability Crisis for Rental Housing
Housing Crises Supply Affordability Trades Productivity Innovation
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Affordability Crisis for Rental Housing
$63/Hr.
Housing Crises Supply Affordability Trades Productivity Innovation
Affordability Driving Ownership Alternatives
Housing Crises Supply Affordability Trades Productivity Innovation
Affordability Will Impact Where We Live
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Source: “Where are the Millennials Buying Homes? – 2018 Edition,” Derek Miller, Smart Asset, June 8, 2018
Affordability Impacting Where Young Buyers Moving
Housing Crises Supply Affordability Trades Productivity Innovation
Home Prices Not Sustainable
Housing Crises Supply Affordability Trades Productivity Innovation
• Land
• Regulation
• Hard Costs‒ Labor‒ Materials
• Design Services
Where Are the Cost Savings Going to Come From?
• Marketing/Sales
• Transaction Costs
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Relative Price Levels[PPP = Purchasing Power Parities]
Source: “Cost of Living, South Africa vs. the World,”Business Tech, April 20, 2015
Why Affordability So Critical
Housing Crises Supply Affordability Trades Productivity Innovation
Australia
United States
Why Affordability So Critical
Housing Crises Supply Affordability Trades Productivity Innovation
Trade Partner Issues
•Availability•Quality •Training•Cost•Productivity•Waste
Housing Crises Supply Affordability Trades Productivity Innovation
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Source: NAHB Eye on Housing, “Builders Report Labor Shortages on the Rise,” August 23, 2017
Large Labor Shortages
Housing Crises Supply Affordability Trades Productivity Innovation
Source: NAHB Eye on Housing, ‘California, Texas, and DC Most Reliant on Immigrant Construction Workers,’ Natalia Siniavskaia, January 24, 2018
Large Labor Shortages Tied to Immigrant Workers
Housing Crises Supply Affordability Trades Productivity Innovation
Source: 2016 ACS, PUMS, NAHB estimates.
Large Labor Shortages Tied to Immigrant Workers
Housing Crises Supply Affordability Trades Productivity Innovation
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Trade Partner Problems Not Getting Better
Two Headed Monster:“Our inability to attract new talent, combined with the aging of our present workforce, is the most serious issue affecting growth…there is no single, concerted, industrywide effort that attacks this issue head‐on.”
Tony Mancini
Housing Crises Supply Affordability Trades Productivity Innovation
1984 2000
100%%
60%
180%
140%
Construction Industry ‐28%
All Non‐Farm Industries +76%
Labor Productivity Index
Source: U.S. Bureau of Labor Statistics, U.S. Dept. of Commerce
3X
Housing Industry Productivity Lagging
Housing Crises Supply Affordability Trades Productivity Innovation
Source: FactSet –Compound annual growth rate for productivity, defined as GDP per worker
Average Year‐Over‐Year
Productivity Growth 2005‐2015
For Major Industries
Housing Industry Productivity Lagging
Housing Crises Supply Affordability Trades Productivity Innovation
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Individual Auto Assembly
1903
Ford Model T Assembly Line
1913
Automobile Offsite Productivity Innovation
Ford EdgeRobotics Assembly Line
2017
Housing Crises Supply Affordability Trades Productivity Innovation
Glacial Progress with Framing Innovation
1877 Wood Frame Source: Wood frame house on a Omaha Reservation in Nebraska (Photo by William Henry Jackson: The National Archives, Smithsonian Institution)
2015 Typical Wood FrameSource: Wall Street Journal, Construction Workers ‘Left the Business and They Didn’t come Back’, Oct. 13, 2015
Housing Crises Supply Affordability Trades Productivity Innovation
150,000
50,000Home Builders
Typical Industry Housing Industry
RemodelingContractors
100,000
Number of Producers
Housing Innovation Challenge: Fragmentation
Housing Crises Supply Affordability Trades Productivity Innovation
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Manufacturers
4%
3%
2%
1%
Corporate America Housing Industry
Builders
R&D Investment as % of Revenue
Housing Innovation Investment: Miniscule
0%
Housing Crises Supply Affordability Trades Productivity Innovation
Production100%
75%
50%
25%
Land
Europe/Asia U.S.
Home Builder Assets
Home Builders: Europe/Asia vs. U.S.
0%Land
Production
Housing Crises Supply Affordability Trades Productivity Innovation
“Despite the importance of the housing industry to the national economy,
there is very little investment in residential technologies… it can take 10 to 25 years for a new housing technology to achieve full market penetration."
Source: ‘The Diffusion of Innovation in the Residential Building Industry,’ Center for Housing Research Virginia Tech & NAHB Research Center, Jan. 2004
Housing Innovation Outcome: Painfully Slow
Housing Crises Supply Affordability Trades Productivity Innovation
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Offsite Construction Accessing Resources for Innovation
Housing Crises Supply Affordability Trades Productivity Innovation
Computer 3D Modeling Critical to Auto Industry
Housing Crises Supply Affordability Trades Productivity Innovation
Building the Home Twice, Virtual Before Actual, Allows Greater:
• Speed
• Quality
• Accuracy
• Efficiency
• Waste Reduction
• System Integration
Building Information Modeling (BIM) Benefits
Housing Crises Supply Affordability Trades Productivity Innovation
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3 Housing Disruptions
Crisis Driven Disruption
5 Housing Crises: 1. Supply2. Affordability3. Trades4. Productivity5. Innovation
3 Housing Disruptions: 1. Mass‐Customization2. Offsite Construction3. SaaS Aggregator
Crises Driven Disruption
Housing Disruptions
Housing Crises
Supply Affordability Trades Productivity Innovation
Mass‐Customization
Offsite Construction
SaaS
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1. Optimized Floor Plans
2. Expert Building Blocks
3. Limited Quality Finishes
Mass Customization: 3 Concepts
• Diverse Choice• Rich Streetscapes=
Disruptions Mass Customization Offsite Construction SaaS
Mass Customization: Optimized Floor Plans
Disruptions Mass Customization Offsite Construction SaaS
DigiBilt
Mass Customization: Expert Building Blocks
AB BC
DE F
A B C D E F
First Floor
• Design• Technology• Health• Zero Energy• Quality
IntegrateWorld‐Class
Experts Second Floor
Disruptions Mass Customization Offsite Construction SaaS
DigiBilt
AB BC
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Mass Customization: Limited Quality Finishes
Options:
• Roof Trusses• Pop‐Out Windows
• Front Porches
• Siding/Trim• Color Packages
Disruptions Mass Customization Offsite Construction SaaS
DigiBilt
Mass Customization: Diverse Consumer Choice
Disruptions Mass Customization Offsite Construction SaaS
DigiBilt
Mass Customization: Rich Streetscapes
Disruptions Mass Customization Offsite Construction SaaS
DigiBilt
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Mass Customization: Rich Streetscapes
Disruptions Mass Customization Offsite Construction SaaS
DigiBilt
Mass Customization: Kitchens
Disruptions Mass Customization Offsite Construction SaaS
Katerra
1. Eliminate Waste
2. Improve Quality
3. Improve Speed
4. Reduce Trades
5. Lower Cost (potentially)
Offsite Construction: 5 Benefits
Disruptions Mass Customization Offsite Construction SaaS
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Visibly Poor Field Productivity
Disruptions Mass Customization Offsite Construction SaaS
Imagine Auto Field Fabrication Like Housing
Disruptions Mass Customization Offsite Construction SaaS
Visibly Poor Waste
Source: Scott Sedam, TrueNorth Development
Disruptions Mass Customization Offsite Construction SaaS
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Imagine Auto Waste Like Housing
Disruptions Mass Customization Offsite Construction SaaS
Offsite Construction: SIPs
Disruptions Mass Customization Offsite Construction SaaS
Offsite Construction: SIPs
Extreme Panel
Disruptions Mass Customization Offsite Construction SaaS
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Offsite Construction: SIPs
Disruptions Mass Customization Offsite Construction SaaS
Unity Homes, Walpole, NH
Offsite Construction: SIPs
Disruptions Mass Customization Offsite Construction SaaS
Unity Homes, Walpole, NH
Living Homes: Environmental Design
World‐Class DesignWorld‐
Class Perf.
World‐Class Quality
Offsite Construction: High-Performance Modular
Disruptions Mass Customization Offsite Construction SaaS
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Living Homes in Santa Monica
Offsite Construction: High-Performance Modular
Disruptions Mass Customization Offsite Construction SaaS
Living Homes in Santa Monica
Offsite Construction: High-Performance Modular
Disruptions Mass Customization Offsite Construction SaaS
HercuWall
Offsite Construction: Insulated Concrete Panels
Disruptions Mass Customization Offsite Construction SaaS
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Superior Wall
Offsite Construction: Precast Concrete Walls
Disruptions Mass Customization Offsite Construction SaaS
Offsite Construction: Robotics
Disruptions Mass Customization Offsite Construction SaaS
Blueprint Robotics
Offsite Construction: Robotics
Disruptions Mass Customization Offsite Construction SaaS
Sekisui House
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Source: Building Design + Construction, David Malone, August 29, 2018
Offsite Construction: Robotics
Disruptions Mass Customization Offsite Construction SaaS
SaaS Aggregator: 3 Concepts
1. Integrate World‐Class Expert Solutions
2. Digitize BIMWorthy Designs
3. Continuously Improve with Data
Disruptions Mass Customization Offsite Construction SaaS
SaaS Concept: Branding Opportunity
Design Technology Health Zero QualityCommunity
[Your Builder Name]Featuring Aggregator World-Class Innovation
Disruptions Mass Customization Offsite Construction SaaS
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SaaS Concept: Branding Opportunity
Design Technology Health Zero QualityCommunity
[Your Builder Name]Featuring Aggregator World-Class Innovation
Architecture
Color
Lighting
Materials
Trim/Details
Enclosure
Comfort
Convenience
Entertainment
Security
Organic
Fresh Air
Filtration
Advisor
Monitoring
Energy
Outages
Water Waste
Auto Fueling
Disaster Risk
Products
Installation
Certified
Warranty
Service
Open Space
Nature
Landscaping
Maintenance
Enduring
Disruptions Mass Customization Offsite Construction SaaS
SaaS Concept: Address Housing Fragmentation
Other Major Industries:Limited Key Players
Housing Industry:Unique Fragmentation
Disruptions Mass Customization Offsite Construction SaaS
SaaS Concept: Address Housing Fragmentation
Individual
Design
Individual
Technology
Individual
Health
Individual
Zero Energy
Individual
Quality
Disruptions Mass Customization Offsite Construction SaaS
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SaaS Concept: Address Housing Fragmentation
World‐Class
Design
World‐Class
Technology
World‐Class
Health
World‐Class
Zero Energy
World‐Class
Quality
SAASAggregator
Individual
Design
Individual
Technology
Individual
Health
Individual
Zero Energy
Individual
Quality
Disruptions Mass Customization Offsite Construction SaaS
Integrated Packages
SaaS Concept: Optimize World Class Experts
Disruptions Mass Customization Offsite Construction SaaS
World‐Class
Design
World‐Class
Technology
World‐Class
Health
World‐Class
Zero Energy
World‐Class
Quality
SAASAggregator
SaaS Concept: World-Class Expert Packages
SaaS Aggregator
‘Brand’Promise
SaaS ServicesWorld‐Class Expert
Solutions
Design
Big Data
Supply Chain
BIM Integrated Design
Scheduling
Bill ofMaterials
Performance
Technology
Quality
World‐Class Design
Superior Consumer Experience
• Design• Performance• Quality • Sales
Builder Pain
Design
Performance Risk
Technology
Trades Construction Docs
Superior Builder
Experience
• Risk• Cycle Time• Waste• Quality• Brand
Disruptions Mass Customization Offsite Construction SaaS
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SaaS on Steroids: Bundle with Offsite Company
Offsite Plant/SaaS Aggregator
‘Brand’Promise
Offsite PlantWorld‐Class Expert
Solutions
Design
Big Data
Warranty
BIM Integrated Design
Marketing
Setup
Performance
Technology
Quality
Mass Customization
Superior Consumer Experience
• Design• Performance• Quality • Sales
Builder Pain
Design
Performance Risk
Technology
Trades Factory Built Quality
Superior Builder
Experience
• Risk• Cycle Time• Waste• Quality• Brand
Disruptions Mass Customization Offsite Construction SaaS
SaaS Concept: Gentle Disruption
Like Uber but Different:• Like: Leverages technology and data for a better consumer experience
• Different: Leverages existing builder supply chain rather than displace it
• Result: Builders embraces changerather than fights it!
SaaS = Gentle Disruption
Disruptions Mass Customization Offsite Construction SaaS
• Prepare sales for the informed homebuyer
• Move to zero energy ready performance
• Continually improve your customer experience
• Look for opportunities to integrate with off‐site production
• Work with upcoming housing SaaS aggregators
Disruption is Coming Builder Recommendations
Disruptions Mass Customization Offsite Construction SaaS
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Sam Rashkin6207 Sudley Church Ct.Fairfax Station, VA [email protected]
Thank You and Questions
Builder Events:
Executive Workshops:• Charleston, SC:
March 6-7, 2019
• Loudon, VA: June 6-7, 2019
• Aspen, CO:Setember 19-20, 2019
Boot Camp:
• Scottsdale, AZ: November 15-16, 2019