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They are still too small to innovate (to take risks, to invest in better technology), the jobs are also small for better tooling, everything requires too much on-site labor, etc.

SFH is itself a waste of money. And land, which is especially expensive where housing costs are high. For every small house different crews need to go there, prepare the site, do the foundation, etc.

Half of the hard costs is labor. (Which is, again, usually high in areas with high housing costs.)

https://www.construction-physics.com/p/what-makes-housing-so...

And of course the opportunity cost due to lost density effect is substantial, blablabla.

The tragedy is that there's a huge discontinuity here, and overcoming that would require a lot of capital (social, political, financial).

And in general construction productivity is extremely meh, to phrase it politely.

https://www.mckinsey.com/capabilities/operations/our-insight...






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