Where are the economies of scale in homebuilding?

Overall affordability vs. construction efficiency

• Several comments argue the core problem isn’t construction inefficiency but wages, inequality, and land prices: when median incomes are low and houses cost many times that, process optimizations barely matter.
• Others counter that high prices mainly reflect constrained supply; if governments and local opposition allowed more building and density, prices would fall, especially via filtering from new to older stock.
• Land in desirable locations is often the dominant cost (sometimes multiple of structure cost), limiting what construction innovation can achieve.

Economies of scale and why they’re hard

• Many inputs (lumber, drywall, trusses) are already standardized and mass-produced; big builders don’t gain much extra scale because suppliers already sell by the railcar.
• The expensive part is on‑site fit‑out and coordination of many trades (plumbing, electrical, finishes), not the shell.
• Attempts at extreme modularity (central “pods” for utilities, entirely pre-cut lumber, all‑in‑one cores) are seen by some as possible efficiency gains, by others as logistical and design nightmares.

Prefab, modular, and historical mass housing

• Prefab whole houses face issues: changing tastes, varying codes and planning controls, transport constraints, and large upfront factory investment.
• Prefab components (trusses, windows, panels) are widely used and successful.
• Communist-era and European large-panel and mass housing programs show industrialized construction can work, but quality, monotony, and social design issues matter. Some modern prefab wooden house firms are cited as effective on speed, less clearly on cost.

Codes, planning, and fragmentation

• Fragmented zoning, planning controls, and design guides (often down to room dimensions, sunlight rules, heritage constraints) make one-size-fits-all designs difficult.
• Manufactured/mobile homes benefit from a national HUD code in the U.S., but are socially stigmatized and often separately regulated.

Density, location, and politics

• “Prime location” scarcity and resistance to density are seen as major constraints; others argue density, done well, increases desirable housing.
• Suburban sprawl is criticized as cross‑subsidized and infrastructure‑inefficient; supporters emphasize household preferences.
• Several note that homeowners and local voters often want high prices to protect wealth and exclude “undesirables,” making pro‑supply reforms politically difficult.