Skip to main content

Just Released: The Diffusion of Innovation in the Residential Building Industry

HUD.GOV HUDUser.gov
eList
HUDUSERNEWS
*********************************************************
NEWS FLASH: PD&R is hosting the National Fair Housing
Policy and Research Forum - March 12 & 13 in Washington
DC. Learn more at
https://www.huduser.gov/portal/whatsnew/whatsnew.html
*********************************************************

The successful diffusion of innovations in the
residential home building industry can have substantial
social, economic, and environmental benefits to American
homeowners, and to members of the housing industry as
well. By incorporating new technologies, techniques, and
materials into construction practices, it is possible to:

o Create more affordable housing;
o Improve energy efficiency and conserve energy
resources;
o Improve the quality of U.S. housing stock by reducing
the need for frequent repair and maintenance;
o Increase the longevity of the housing stock;
o Reduce the flow of scrap materials into the waste
stream; and
o Conserve scarce natural resources.

A recent study commissioned by HUD's Office of Policy
Development and Research (PD&R) and PATH titled "The
Diffusion of Innovation in the Residential Building
Industry" looks at how and why innovations diffuse within
the residential design and construction industry. Such
knowledge can potentially accelerate the adoption and
integration of new building technologies through more
effectively designed programs, demonstration projects,
channels of distribution, marketing strategies, and
policy incentives.

The authors first conducted a literature review to
summarize established theory and research on the
diffusion of innovative products and practices in the
construction industry. Then, using information collected
through a survey of U.S. homebuilders and longitudinal
data collected through the National Association of Home
Builders Annual Builder Practices Survey, the authors
examined how and under what circumstances residential
housing innovations become standard industry practices.

The research is focused on "early adopters" -
homebuilders who adopt particular products and materials
at an early stage of market penetration.  While early
adopters represent only a small percentage of all
builders, they are critically important in demonstrating
the benefits of these products and materials to other
builders. The authors also note, however, that middle-
stage adopters deserve greater research attention, as
they are the lynchpin to significant market penetration.
They additionally note that late-stage adopters are
heavily influenced by the 'bandwagon' effect, when the
pressure is on to adopt products, materials, and
practices that are rapidly becoming industry standards.

The research indicates that at the early stage of
diffusion, national and regional firms, multifamily and
modular builders, and custom builders are more likely to
adopt innovations than are smaller volume single-family
production builders. And while building product supplier
representatives, subcontractors, and trade shows are
important sources of information about new products and
materials for all builders, early-stage adopters rely on
technology transfer programs and universities more than
middle or late-stage adopters do.

The research suggests that the perception among
homebuilders that homebuyers want the "tried and true"
construction materials plays an important role in the
diffusion of residential construction technology.
Further, the presence of "technology advocates" within
the firm is also an important indicator in the diffusion
of residential building technologies. More innovative
firms are likely to stress the importance of being
creative and innovative, and so are often among the first
to use new products. Later adopters are more likely to be
local firms and single-family production builders who
emphasize marketability and profit, as well as those who
associate the firm's success with land development.

"The Diffusion of Innovation in the Residential Building
Industry" is available for download from HUD USER at
https://www.huduser.gov/portal/publications/destech/Diffusion_report.html.
--------------------------------------
Please contact HUD USER at:
HUD USER
P.O. Box 23268
Washington, DC 20026-3268
1-800-245-2691
1-800-927-7589 (TDD)
202-708-9981 (fax)
--------------------------------------
The HUD USER News listserv was created to keep
professionals in the fields of housing and community
development abreast of new research and resources
available from the U.S. Department of Housing and Urban
Development's Office of Policy Development and Research
(PD&R). Periodically, publications and announcements will
be sent via the listserv.

Share HUD USER's resources and information with a
colleague. Please consider forwarding this e-mail to an
associate who may be interested in the resources HUD USER
has to offer. Thanks!

To stay abreast of new HUD research and resources,
subscribe to HUD USER News. This listserv will
automatically e-mail you publication announcements and
other notices from HUD's Office of Policy Development and
Research. To subscribe, send a message to:
hudusernews@huduser.gov. In the subject of the message,
type: subscribe. For example:
To: hudusernews@huduser.gov
Subject: subscribe

You will receive a confirmation message with instructions
on how to post messages to the list, search the message
archives, and how to unsubscribe. You may use your web
browser to search the listserv message archives at
https://www.huduser.gov/portal/elist/archive.html