Charles R. Goulding and Preeti Sulibhavi explore how Kamala Harris’ housing proposal, combined with 3D printing technology, could redefine affordable homeownership in America.
It is well recognized that it is very difficult for first-time home buyers and renters to obtain adequate housing. Rising costs, limited inventory, and economic instability have all contributed to a housing crisis that makes it nearly impossible for many Americans to achieve the dream of homeownership. Recognizing this, Presidential candidate Kamala Harris has proposed new incentives aimed at addressing these critical supply-short housing sectors.
Kamala Harris’ proposal focuses on providing substantial financial support to first-time homebuyers, particularly those from historically marginalized communities. The most significant aspect of this plan is the proposed US$25,000 downpayment assistance for first-time homebuyers. This one-time grant would be provided upfront and could be a game-changer for millions of Americans who struggle to save enough for a downpayment. The grant is particularly targeted at families earning up to US$100,000 annually, or US$150,000 in high-cost areas, ensuring that those who need the most help can access this support.
Harris’ plan also includes provisions for renters. Recognizing that the path to homeownership often starts with stable and affordable rental housing, her proposal aims to expand federal support for affordable rental housing development. This could include increased funding for the Low-Income Housing Tax Credit (LIHTC), which incentivizes developers to build affordable housing, and the establishment of new public-private partnerships aimed at accelerating the construction of affordable rental units.
Additionally, Harris has proposed a federal grant program to help first-time homebuyers with closing costs, which can be another significant financial barrier. By reducing the financial burden at both the downpayment and closing stages, Harris’ plan could dramatically increase homeownership rates among lower-income and minority households, addressing long-standing disparities in the housing market.
The new housing incentives would need to consider the reality that first-time incentives don’t completely address the issue of affordability and rising home costs.
The Role of 3D Printing in Addressing Housing Shortages
As the housing crisis continues to escalate, innovative solutions are needed to meet the growing demand for affordable housing. One of the most promising technologies in this space is 3D printing. 3D printing, also known as additive manufacturing, involves creating physical objects layer by layer from a digital model. In the context of housing, 3D printing can be used to construct homes more quickly, efficiently, and affordably than traditional methods.
The demonstrable cost savings from 3D printed housing addresses the affordability challenges. Moreover, the federal government has made tremendous investments in 3D printing technology and should support its utilization in any housing program.
The potential of 3D printing in the housing sector has already been demonstrated in various parts of the world. In Mexico, for instance, the world’s first 3D-printed neighborhood was developed, providing affordable homes for families living on less than US$3 a day. The project, led by New Story, a nonprofit organization, and ICON, a construction technologies company, showcased how 3D printing could revolutionize affordable housing on a global scale.
In the United States, 3D printing technology has also begun to gain traction. One of the most significant developments in this area is the partnership between D.R. Horton, the largest U.S. residential homebuilder, and Apis Cor, a leading 3D-printed home provider. This collaboration could pave the way for 3D printing to play a crucial role in addressing the housing shortage in the U.S.
D.R. Horton and Apis Cor: A Partnership Poised to Transform the Housing Market
D.R. Horton, a Fortune 500 company, has been a dominant force in the U.S. housing market for decades. Known for its large-scale developments and focus on affordability, Horton has built millions of homes across the country. However, with rising construction costs and labor shortages, the company has faced challenges in maintaining affordability in recent years. This is where the partnership with Apis Cor comes into play.
There have been approximately 17 million homes built in the US since the end of the 2008 financial crisis and that is down about 20% compared to 14 years prior despite 9% population growth since the crisis.
Since it was founded in 1978, D.R. Horton has built over a million homes across 33 states. Horton has identified building materials as being approximately 40% more expensive than prepandemic.
Apis Cor is a pioneer in the field of 3D-printed homes. Founded in 2016, the company has developed a proprietary 3D printing technology that can produce homes faster and at a lower cost than traditional construction methods. Apis Cor’s 3D printers can construct the walls of a house in just a few days, using a concrete mixture that is both durable and sustainable. The technology also allows for greater design flexibility, enabling the construction of homes that are not only affordable but also innovative and aesthetically pleasing.
The partnership between D.R. Horton and Apis Cor marks a significant milestone in the adoption of 3D printing technology in the U.S. housing market. By leveraging Apis Cor’s technology, Horton aims to reduce construction costs, shorten build times, and increase the supply of affordable homes. This is particularly important in the current housing market, where demand far outstrips supply, driving up prices and making homeownership unattainable for many.
How 3D Printing Aligns with Kamala Harris’ Proposal
The integration of 3D printing into the housing market could be a key component of Kamala Harris’ proposal to address the housing crisis. Here are several ways in which 3D printing aligns with and supports Harris’ vision:
- Cost Reduction: One of the primary goals of Harris’ proposal is to make homeownership more affordable. 3D printing can significantly reduce construction costs by minimizing labor expenses, reducing material waste, and speeding up the construction process. This cost reduction can be passed on to buyers, making homes more affordable for first-time homebuyers.
- Speed of Construction: The housing shortage is exacerbated by the slow pace of traditional construction. 3D printing technology can dramatically accelerate the construction timeline, allowing for quicker delivery of homes to the market. This increased speed can help meet the demand for affordable housing more effectively.
- Sustainability: Harris’ proposal emphasizes the need for sustainable housing solutions. 3D printing technology aligns with this goal by reducing material waste and enabling the use of eco-friendly building materials. Additionally, 3D-printed homes can be designed to be energy-efficient, further contributing to sustainability.
- Design Flexibility: The flexibility of 3D printing allows for the construction of homes that can be customized to meet the specific needs of different communities. This can include everything from small, affordable homes for first-time buyers to more complex structures for multi-generational families. By providing a wide range of housing options, 3D printing can support Harris’ goal of increasing homeownership among diverse populations.
- Scalability: The scalability of 3D printing technology makes it well-suited for large-scale housing developments, which are necessary to address the housing shortage. The partnership between D.R. Horton and Apis Cor demonstrates the potential for 3D printing to be deployed on a large scale, providing a significant boost to the supply of affordable homes.
The Future of Homeownership and 3D Printing
As Kamala Harris’ proposal gains traction, the role of 3D printing in the housing market is likely to become increasingly important. The technology offers a unique solution to many of the challenges facing the housing market today, from high costs to slow construction times. By integrating 3D printing into her proposal, Harris can help ensure that more Americans have access to affordable, sustainable, and high-quality homes.
The partnership between D.R. Horton and Apis Cor is just the beginning. As 3D printing technology continues to evolve, it has the potential to revolutionize the housing market on a global scale. From reducing the cost of homeownership to increasing the supply of affordable housing, 3D printing could be a key player in solving the housing crisis and making the American dream of homeownership a reality for millions.
The Research & Development Tax Credit
The now permanent Research and Development (R&D) Tax Credit is available for companies developing new or improved products, processes and/or software.
3D printing can help boost a company’s R&D Tax Credits. Wages for technical employees creating, testing and revising 3D printed prototypes can be included as a percentage of eligible time spent for the R&D Tax Credit. Similarly, when used as a method of improving a process, time spent integrating 3D printing hardware and software counts as an eligible activity. Lastly, when used for modeling and preproduction, the costs of filaments consumed during the development process may also be recovered.
Whether it is used for creating and testing prototypes or for final production, 3D printing is a great indicator that R&D Credit-eligible activities are taking place. Companies implementing this technology at any point should consider taking advantage of R&D Tax Credits.
Conclusion
Kamala Harris’ proposal to support first-time homebuyers and renters is a crucial step towards addressing the housing crisis in the United States. By providing financial assistance and expanding affordable housing options, her plan could make homeownership attainable for many who have been locked out of the market. The integration of 3D printing technology into the housing sector, through partnerships like that of D.R. Horton and Apis Cor, aligns perfectly with Harris’ goals. With its potential to reduce costs, accelerate construction, and promote sustainability, 3D printing could play a pivotal role in transforming the housing market and ensuring that all Americans have access to the homes they deserve.Top of Form
