A Brighter Future for Affordable Housing Construction Is Coming
New technologies should ease some of the burdens while promoting sustainability, writes Ann Nerona of NHP Foundation.
The affordable housing industry is grappling with both longstanding and emerging challenges in its mission to meet America’s housing needs.
One major challenge? The U.S. construction industry needs more than 500,000 workers to meet demand, driven by an aging workforce and compounded by a declining interest in trades among younger people.
The pandemic has also contributed to the shift away from material availability whereby manufacturers and distributors are maintaining fewer quantities on-hand. This has resulted in longer project schedules based upon lead times for once readily available materials or longer lead times for specialized equipment/materials.
In response to the global climate crisis, sustainable practices have added supplemental costs to rising construction budgets.
Regarding the specific challenges facing the construction needs of the industry, we are seeing some solutions to make more affordable housing and make it more accessible and environmentally sustainable. Some of these initiatives include regulatory reforms and policy changes that support affordable housing development, such as zoning reforms that make it easier to build multifamily housing.
Additionally, innovative construction methods and strategies are being implemented to reduce costs and streamline building processes, ensuring affordable housing is financially viable. Some of these include:
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Modular or component-based construction that allows for the prefabrication of building components off-site, reducing both construction time and costs. This method offers a sustainable, energy-efficient solution, aligning with the need for greener construction practices and minimizing environmental impact. As a result, modular construction has emerged as a top choice for increasing affordable housing supply without compromising on sustainability.
Innovative practices such as 3D printing to economize the build process, interactive technologies–including virtual reality, augmented reality, and mixed reality–to mitigate design conflicts, and AI and machine learning to streamline workflow are just some of the emerging technology-based solutions to the construction industry.
Support of federal efforts such as the establishment of a federal reinsurance fund, which would allow insurers to cover affordable housing developments more confidently despite climate-related risks. This forward-thinking approach and integrating climatology into building practices encourages developers and insurers to consider both current and future climate scenarios. By assessing a development’s long-term sustainability, developers and insurers can make informed decisions on how to protect residents and assets, ultimately reducing insurance costs and fostering continuous investment in vulnerable communities.
Access to all available data is increasingly possible for developers through the use of tools that allow them to model climate, social and demographic shifts at the local level. By utilizing these tools, developers can determine where to build and identify the necessary infrastructure upgrades to meet future needs. This data-driven approach allows developers to pinpoint optimal locations for housing, reducing the risk of building in areas prone to natural disasters or other potential risks.
Addressing the skilled labor shortage in construction is essential for affordable housing development. Nearly 90 percent of construction companies struggle to find qualified workers due to the educational focus on college degrees, diverting students from trades. To reverse this trend, investing in skills training in middle and high schools, reviving vocational classes and creating partnerships with technical schools for scholarships, internships and apprenticeships can attract young talent. Additionally, skills-based hiring opens opportunities for veterans, formerly incarcerated individuals, immigrants and other less traditional sources, helping to bridge the labor gap and increase workforce opportunities.
While the challenges facing affordable housing construction are complex, a combination of policy reform, sustainable practices and skilled labor development can make a significant impact. By investing in sustainable construction methods, leveraging data for strategic decision-making, and fostering a skilled, diverse workforce, the affordable housing industry is poised to provide long-term solutions to the nation’s housing crisis. Collaboration across the public and private sectors will be essential in realizing this vision, ensuring that affordable housing remains an attainable goal for all Americans.
Ann Nerona is construction administrator for NHP Foundation.
