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Declining construction productivity in housing is an overlooked issue. When you think of other sectors, from manufacturing to resource extraction, and agriculture, production processes have changed drastically over the past 50 years. Housing, however, is done in much the same way as it was midcentury.
Part of the reason lies in the low firm concentration in the industry, reflective of inconsistent policies across municipalities and provinces that increase compliance costs and make economies of scale a challenge to pursue.
Based on a recent paper for @MLInstitute, @regionomics and I put forward ideas to make housing construction more productive. 👇
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“Canada cannot build its way out of the housing shortage through labour expansion alone.”
–“More Hammers, Fewer Homes” MLI paper
In the latest MLI report Murtaza Haider (@regionomics), Simeon Ranxha, Meet Shah, Chris McCulloch and Stephen Moranis examine productivity of residential housing construction in Canada. Its central finding is clear: while some commonly cited measures suggest productivity has improved, they are poorly suited to housing policy.
Read full paper to learn more⬇️
"@regionomics co-authored a report... which identified that the construction industry relies on increasing labour rather than investing in newer technologies.
Those labour costs add to the higher house prices & lack of affordability."
https://t.co/20ZJ2itGsc