On Thursday night I spoke at Product Hunt Toronto about the overlap between real estate and tech. My slide deck will be made available online and I’ll be sure to tweet it out and link to it in the comment section of this post.
What was amazing to see was a room filled with 250 people coming together from almost two different worlds. I’m generalizing here, but you had the real estate people in suits and the tech people in t-shirts. But they were all mixing together to figure out how technology is going to disrupt the real estate industry. That is great to see.
This was not the case 5+ years ago when I started obsessing about the overlap between these two spaces. I remember pitching at a Startup Weekend here in Toronto where I was pegged as the fringe outlier for wanting to work on a real estate idea. Now I can’t keep track of all the startups who are tackling this space.
But this is a trend that is happening not only in real estate but in almost every other vertical. Here’s a quote from Fred Wilson that I used last night:
“One of NYC’s great strengths is the diversity of its economy – finance, real estate, media & entertainment, retail, fashion, health care, education, and now tech. And the reason tech is growing so fast in NYC is that it is embedding itself in all of these other industries.”
It’s an exciting time.
In any event, for those of you weren’t able to attend, the 3 startups that presented were Evercondo, PiinPoint, and MappedIn.
Evercondo is a condo communication and management tool for property managers and boards. PiinPoint is a data-driven tool that helps businesses find the best places to locate within a city. And MappedIn creates digital wayfinding solutions for (primarily) retail stores and venues.
If you know of any other interesting startups tackling the real estate space, please share them in the comment section below. Early stage companies need all the support and exposure they can get.
The Neptis Foundation here in Toronto just recently published a fantastic report looking at the regional economic structure of the Greater Golden Horseshoe area. It’s called Planning for Prosperity.
In it they identity the polycentric nature of employment in the Toronto region by way of downtown Toronto and three suburban “megazones.” Here’s one of their maps showing overall employment density and the megazones (light blue circles):
Here’s a snippet to give you an idea of the scale of these megazones:
“The Airport megazone, one of the three employment megazones outside Downtown Toronto, is the second largest concentration of employment in Canada, after Downtown Toronto. It represents almost 300,000 jobs, more than the central business districts of Montreal, Vancouver, or Calgary individually.”
And here’s a chart showing the hard numbers:
Downtown Toronto dominates in terms of employment. But it’s also fascinating to see how much more efficiently it provides that employment. It has the smallest physical area of all the employment zones (2,540 hectares or 6,276 acres) and the lowest percentage of car trips (29%).
But the big takeaway from their report is that we have not been focused enough on employment in our planning. Instead, we seem to be thinking residentially. Here’s a final snippet:
“This study shows that the Growth Plan and The Big Move, which are currently under review, do not address the challenges and opportunities of a globalizing regional economy or the reality of a transforming economic landscape.
The Growth Plan’s focus has largely been on managing residential growth rather than non-residential and employment-related development. Indeed, the Growth Plan is based on shockingly little hard evidence on the evolving economy of the region. Plans for city-regions a fraction of the size of the GGH typically involve more economic research, analysis, and evidence.”
Clearly we need to be looking at both the residential and non-residential sides of the equation as we grow the region. To read the full report, click here.
I recently had the opportunity to visit the 200,000 square foot manufacturing facility of H+ME Technology here in Toronto.
Here’s a photo of myself and Nick Zicaro:
H+ME (originally called Brockport Home Systems Ltd.) is a division of developer Great Gulf, but they were never intended to be just an in-house provider and much of their business is now with outside clients.
What H+ME Technology does is manufacture and assemble factory-built wood panels for both low-rise and mid-rise new construction homes. That is, instead of the walls and floors being framed outside on the construction site, they are fabricated ahead of time in a controlled facility (see below) and then delivered to site. This allows for a single-family home to be framed in as little as 2 days on the job site.
What’s interesting about all of this is that architects have long been obsessed with the idea of shifting construction away from the actual job site. A great book on this topic is Refabricating Architecture by Stephen Kieran and James Timberlake. In it they talk about how inefficient our construction processes are and how we ought to move towards a fully integrated approach that brings together technology, materials, and production methods.
And in 2006 they put their money where their mouth is and built a fully prefabricated house on Taylors Island in Maryland. Here’s an snippet from their website:
“Most houses are built from thousands of parts, which are transported separately to the construction site and pieced together by hand—a process of extraordinary duration, cost, and environmental impact. With Loblolly House, by contrast, we wanted to use integrated assemblies of those parts, fabricated off site, to build a house in an entirely different way.”
The big advantage of this entirely different way is that you’re able to dramatically improve efficiencies, quality, and performance by fabricating the components in a controlled environment, as opposed to on-site by hand.
Despite all this, the industry has been incredibly slow to change and most houses are indeed not built this way. But H+ME is working to change that, which is why I was keen to check out their facility and learn about their business.
So here’s how it works:
H+ME starts by modeling out the entire home in 3D CAD according to the project drawings. This allows them to catch any design coordination errors before they happen on-site. And it’s why their slogan is “Twice built. Assembled once.” They are literally building the entire house in 3D ahead of time.
Once the house has been modeled, they then send the designs for the walls and floors to their factory and begin production. During this process, all of the rough-ins for electrical, plumbing, and so on, are provided, which makes it super easy for the trades on-site later on.
Here’s what that looks like in the factory:
A video posted by Home Technology (@twicebuilt) on Sep 25, 2015 at 10:56am PDT
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And here’s what the scene looks like on-site when the panels get delivered:
A video posted by Home Technology (@twicebuilt) on Oct 30, 2015 at 8:32am PDT
//platform.instagram.com/en_US/embeds.js
Ultimately, their vision is to be able to deliver fully closed walls to site. This would mean that all the plumbing, electrical, insulation, and so, would already be in the walls and be ready to get connected/assembled. All of this is a significant step forward.
Because as Stephen Kieran and James Timberlake argued in their book, this is where the industry is headed. We are headed towards much closer integration across design, technology, materials, and production methods.
And in the end this is a great thing for both the industry and for consumers. It will translate into less coordination errors. Less construction waste. Less environmental impact. Greater construction efficiency. And much higher quality homes. I can’t wait to see more of this.
A big thanks to the folks at H+ME Technology for taking the time to speak with me and tour me around their facility. If you’re interested in this space, they will be hosting a Q&A session on Twitter this Wednesday, November 25th at 8pm eastern time. You can join here or using the hashtag #TalkHomeTech. I’ll be tuning in.