Brattle Principal Hans Weemaes Examines the Characteristics that Impact Australian Housing Costs
In a new article, Principal Hans Weemaes examines the cost structure of housing construction in Australia, applying a cost accounting and systems lens to explore how product design and production systems lock in much of housing’s underlying cost structure.
The article, “Why Housing Can’t Be an iPhone: The Cost & System Characteristics Behind Australian Housing,” examines how the characteristics of housing design and construction shape the industry’s underlying cost structure, explaining why housing construction has not experienced the same productivity-driven cost reductions as mass-manufactured products.
Mass-manufactured products, such as consumer electronics and smartphones, rely on highly standardized, controlled, and automated production processes, which enable greater efficiency and lower costs over time. By contrast, construction is shaped by factors such as size, materials, site conditions, geographic constraints, and local labor, which can vary by location and often require the involvement of numerous independent organizations.
Although housing construction can benefit from productivity improvements, industry characteristics and product design requirements prevent the same degree of standardization and efficiency as seen in mass-produced consumer electronics, such as the iPhone.
Read the full article below.
