The homebuilding industry is at a turning point. With labor shortages, rising costs, and shifting consumer demands, innovation is no longer a luxury—it’s a necessity. That was the key takeaway from Higharc’s recent webinar, Winning Through Innovation in Homebuilding in 2025, hosted in partnership with Pro Builder Magazine, the Housing Innovation Alliance, and Ivory Innovations.
Featuring insights from industry leaders—including Dennis Steigerwalt (Housing Innovation Alliance), Dejan Eskic (Ivory Innovations), and Rich Binsacca (Pro Builder Magazine)—this discussion explored how builders are approaching emerging technologies, process improvements, and cultural shifts to stay ahead.
Homebuilding Innovation Happens on the Go
Innovation in homebuilding isn’t like tech, where companies can pause and spend years on R&D before rolling out a new product. As Dejan Eskic pointed out, “Other industries can research new products and technology, but innovation in homebuilding happens on the go.” Builders must adapt in real time, balancing new ideas with the realities of risk, regulation, and resource constraints.
A Growing Commitment to Innovation
While homebuilding has long been perceived as slow to change, Dennis Steigerwalt called out a surprising shift: “25% of builders now have a dedicated innovation function. A few years ago, no one thought this number would be above 10%.” That means more builders are proactively exploring ways to improve efficiency and reduce costs. But for the other 75%, the challenge remains: how to prioritize innovation in a traditionally risk-averse industry.
Why Builders Struggle to Innovate
The reluctance to embrace change often comes down to two key factors: cost and culture. Conor Sedam summed it up well: “We're always either too busy to change or too broke to change. Finding that middle ground for innovation is the hardest thing in the world.”
Dejan Eskic highlighted another obstacle—labor shortages. “A quarter of the construction workforce is now over 55. Innovation isn’t just about efficiency—it’s about survival.” With fewer skilled workers entering the field, builders must turn to new methods, materials, and processes to keep up.
The Role of Trade Partners in Innovation
Builders don’t operate in a vacuum. A major theme of the discussion was the critical role trade partners play in driving change. Dennis Steigerwalt noted, “The best founders are talking to the trades first—because the trades are the ones out there actually building the houses.”
Successful innovations—like Rheia’s air distribution technology—often start with trade professionals identifying ways to work more efficiently. If builders aren’t listening to their trade partners, they may be missing out on some of the most impactful opportunities for improvement.
Technology and the Future of Homebuilding
So where is innovation happening today? The webinar highlighted several key areas:
- Digital tools for sales and design: “Smart connected homes are now requisite,” said Rich Binsacca, pointing out that 66% of builders have already adopted some form of smart home technology.
- Alternative materials and offsite construction: Builders are increasingly exploring prefabrication and new materials to improve efficiency, though widespread adoption is still a few years out.
- Automation and AI: While still emerging, technologies like AI-driven design and robotics are beginning to reshape the industry.
Dennis Steigerwalt predicted an even bigger shift: “We’re in the middle innings of innovation in homebuilding. It’s going to look like a 10-year overnight success.”
Bold Predictions for the Next Five Years
The webinar closed with some predictions about what’s next for homebuilding innovation:
- Rich Binsacca: “Offsite construction is at 1-2% now, but in five years, it’ll be at 5% of all new homes.”
- Dejan Eskic: “If you're not involved in your local politics when it comes to housing policy, don't waste your time complaining about innovation not happening.”
- Dennis Steigerwalt: “Foreign investment in U.S. construction tech will continue to rise, and states will start adopting programs like Colorado’s innovative housing incentives.”
The Path Forward
Innovation in homebuilding isn’t just about technology—it’s about mindset. As Rich Binsacca put it, “The best builders identify a problem, find the right partners, and commit to solving it. There’s no single innovation for everyone, but there are multiple innovations for everything.”
For builders looking to stay ahead, the message is clear: embrace change, collaborate with trade partners, and start integrating technology into your processes. The future of homebuilding belongs to those who are willing to innovate.
Stay Connected
Want to keep up with the latest in homebuilding innovation? Subscribe to our newsletter for industry insights, webinars, and exclusive content.
See how builders are cutting costs and boosting efficiency in 2025, watch the on-demand webinar!
See higharc in action
Discover how Higharc can empower your team to conquer change, modernize your buyer experience, and decrease cycle times.
Book a demo
.jpg)
%20(1260%20x%20960%20px).jpg)
%20(1260%20x%20960%20px).jpg)
.jpg)
.jpg)
