CUSTOMER ORIENTED APPROACHES TO HOUSING AFFORDABILITY IN INDUSTRIALIZED HOUSE BUILDING

Introduction

Housing affordability remains a pressing issue globally, with many urban centers experiencing escalating housing costs that outpace income growth. In Australia, for instance, Sydney’s median housing price reached nearly 13 times the median salary in recent years, highlighting the severity of the affordability crisis. Traditional construction methods have struggled to meet the demand for affordable housing, prompting exploration into alternative approaches. One such approach is Industrialized House Building (IHB), which leverages prefabrication and customer-oriented strategies to enhance affordability and efficiency in housing delivery.​

Understanding Industrialized House Building

Industrialized House Building refers to the application of industrial production principles to residential construction. This includes the use of prefabricated components, standardized processes, and assembly-line techniques to produce housing units more efficiently and cost-effectively. IHB aims to reduce construction time, minimize waste, and improve quality control, all while addressing the specific needs and preferences of customers.​

While prefabrication has long been considered a means to lower housing costs, its effectiveness in achieving affordability is influenced by various factors, including market perceptions, regulatory environments, and the degree of customization offered to consumers. Therefore, a customer-oriented approach within IHB is essential to align housing products with user expectations and market demands.​

Case Studies: BoKlok and Pettit & Sevitt

The paper presents a comparative analysis of two IHB companies that exemplify customer-oriented approaches to housing affordability: BoKlok in Sweden and Pettit & Sevitt in Australia.​

BoKlok (Sweden)

BoKlok, a joint venture between IKEA and Skanska, operates in the multi-residential housing market in Sweden. The company focuses on delivering affordable, sustainable, and well-designed homes for people with average incomes. Key features of BoKlok’s approach include:​

• Standardization: Utilizing a limited range of standardized housing models to streamline production and reduce costs.​

• Prefabrication: Manufacturing building components off-site in controlled environments to enhance quality and efficiency.​Harvard Joint Center for Housing Studies

• Customer Engagement: Involving customers in the design and customization process to ensure homes meet their needs and preferences.​

• Sustainability: Incorporating energy-efficient designs and materials to reduce environmental impact and operational costs.​

BoKlok’s model emphasizes affordability without compromising on quality or design, demonstrating the potential of IHB when aligned with customer-centric principles.

Pettit & Sevitt (Australia)

Pettit & Sevitt was an Australian homebuilding company that operated during the 1960s and 1970s, specializing in architect-designed project homes. Their approach was characterized by:​

• Architectural Design: Collaborating with renowned architects to create modern, functional, and aesthetically pleasing homes.​

• Customization: Offering clients the ability to modify standard designs to suit their individual needs and preferences.​

• Affordability: Balancing design excellence with cost-effective construction methods to make architect-designed homes accessible to middle-income buyers.​

Pettit & Sevitt’s success lay in their ability to democratize architectural design, providing high-quality homes at affordable prices through a customer-focused approach.​

Comparative Analysis

Despite operating in different countries and time periods, both BoKlok and Pettit & Sevitt share commonalities in their customer-oriented strategies within the IHB framework:​

• Focus on Affordability: Both companies prioritized delivering homes that were financially accessible to their target markets.​

• Standardization with Flexibility: They employed standardized designs and construction methods while allowing for customer customization.​

• Quality and Design: Emphasis was placed on providing well-designed, functional homes without excessive costs.​

• Customer Engagement: Active involvement of customers in the design and selection process ensured that the final product met their expectations.​

These case studies illustrate that integrating customer preferences into the industrialized building process can enhance housing affordability and satisfaction.​

Challenges and Considerations

Implementing customer-oriented approaches in IHB presents several challenges:​

• Perception of Prefabrication: Prefabricated homes are sometimes perceived as lower quality or less desirable, which can affect market acceptance.​

• Regulatory Hurdles: Building codes and zoning regulations may not always accommodate innovative construction methods, hindering the adoption of IHB.​

• Balancing Standardization and Customization: Offering customization options while maintaining the efficiencies of standardization requires careful planning and design.​

• Supply Chain Coordination: Effective IHB relies on a well-coordinated supply chain to ensure timely delivery of components and materials.​

Addressing these challenges necessitates collaboration among industry stakeholders, policymakers, and consumers to create an environment conducive to customer-oriented IHB.​

Implications for Policy and Practice

The insights from BoKlok and Pettit & Sevitt offer valuable lessons for policymakers and practitioners aiming to enhance housing affordability through IHB:​

• Supportive Policies: Governments can facilitate IHB by updating building codes, providing incentives, and streamlining approval processes for prefabricated construction.​

• Public Awareness: Educating consumers about the benefits and quality of industrialized housing can improve acceptance and demand.​

• Industry Collaboration: Partnerships between architects, builders, and manufacturers can foster innovation and efficiency in housing delivery.​

• Research and Development: Investing in R&D can lead to advancements in materials, design, and construction techniques that enhance the viability of IHB.

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