566. Why Is It So Hard (and Expensive) to Build Anything in America?

This podcast episode delves into the complexities of the construction industry, discussing challenges such as declining productivity, regulations, and innovation adoption. It highlights the potential of modular construction as a solution to address productivity issues and explores the need for increased investment in R&D, industry partnerships, and innovative construction methods to drive transformation in the sector. Takeaways • Productivity in the construction industry has significantly declined in the past 50 years, leading to higher prices for housing and infrastructure. • Regulations, such as minimum lot size requirements, have contributed to the housing shortage and the intergenerational transfer of wealth. • Innovations in construction methods, such as modular construction, have the potential to address productivity challenges and improve building quality. • The adoption of new technologies in construction is often hindered by safety concerns, separation of roles between designers and contractors, and a lack of understanding of the benefits. • Modular construction has shown promise in increasing productivity and reducing construction time, exemplified by the Croydon Towers project in South London. • Increasing investment in R&D, forming industry partnerships, and implementing government policies can promote innovation and facilitate the adoption of new construction technologies. • Addressing housing affordability requires innovative solutions, such as increasing density, considering land buyouts, and exploring the possibility of transforming agricultural land into dense urban centers.