Significant shifts in housing demand and macro-economic conditions are creating a major gap between supply and demand for properties in desirable locations. Increasing numbers of U.S. residents are moving closer to city centers where jobs and social experiences are greater. Home ownership has been declining from its high of 67.7 percent in 2004 to 63.2 percent in 2014, with a forecast of only 60.8 percent ownership by 2024¹. These effects are driving urban real estate prices and need for rental properties higher.
At the same time, building raw material costs on items such as lumber, concrete and steel are skyrocketing while the industry is facing a significant decline in skilled workers. Since its peak in 2005, the industry has lost a full 1.5 million workers, arguably the biggest threat to the construction industry today. These cost and labor pressures are making it much more expensive and risky to develop new units. Unfortunately, there is little upside left to price units higher given the slow rises in wages and the increasing burden housing costs are forming of household budgets. For recent graduates with large student loan debts, the problem is magnified even further. Finding a suitable housing situation in a good location is becoming less and less attainable.
Enter Prescient. With manufacturing facilities in both Colorado and North Carolina, our “faster, better, greener, cheaper” building revolution can help every major market in the United States quickly revitalize their urban communities as we provide attainable housing for all.
At Prescient, we have developed a fully integrated BIM design and building platform that dramatically reduces the time and cost of constructing multi-unit housing using a proprietary system, changing the way buildings are designed and built. Perfect for senior and military living, student housing, hotels and multifamily structures, our software captures the structural and engineering details to be built and transforms them into detailed, 3D virtual models early in the design process, unlocking true building information modeling (BIM).
Our proprietary Digital Thread drives new levels of cost efficiency, environmental sustainability and quality, ultimately ensuring buildings perform better, cost less and take less time to build, significantly reducing development risk and opening the door for communities to become more inclusive.
Today, developers are testing out new methods of increasing density in new communities, putting more residences in smaller spaces and designing interiors to be more compact and efficient while continuing to provide adequate space for everyday activities. Helping to tackle the issue, the Prescient system has the ability to accommodate different types of units, enabling architects the flexibility and freedom to be as creative as they’d like in the design of the building, creating the types of dwellings homeowners need.
By integrating every stage of design, from layout to creation of the building’s structural model, the structural performance of each component is built into our software. The software then calculates the most efficient component arrangement, laying out all prefabricated structural elements required for construction. From there, computer guided laser drills and automated manufacturing robots create components of the highest quality to precise specifications and dimensions. This level of precision ensures tight tolerances of no more than one millimeter, unlocking the ability to construct a sturdy, predictable product at a rapid pace.
This is the kind of innovation that may be necessary to solve the nation’s attainable housing dilemma. Our approach allows for improved productivity, higher quality, fewer last-minute conflicts on site, less waste, shorter schedules and a better ROI for builders. All of these savings can then be passed along to residents, unlocking truly attainable housing for all.
¹Source: John Burns Real Estate Consulting, LLC based on US Census Bureau data