America's Large Homebuilders Shift the Cost of Shoddy Construction to Buyers

I feel like shoddy construction/craftsmanship isn't limited to new home construction. My wife and I just wrapped up a 6 month renovation of a >100 year old house. I used to work in industrial maintenance, so I knew how to do a lot of stuff already (electric, natural gas lines, drain lines, etc.) We had to farm out a couple of jobs to contractors we didn't have time to do ourselves. With the exception of one guy, they all did horrible work. I actually had to redo some of the work the plumber did. I was so disheartened with the quality that I decided I was going to just do everything myself from now on. I realized even if I read a book about how to do it and watched a few YouTube videos, I could do better.

I really don't think it's a skill issue, because these people knew what they were doing. It just feels like nobody gives a sh*t. If I bend a piece of conduit that's in a visible part of my basement and it's crooked or off, I'll take it down and re-bend it. If I install a piece of base trim and there's a huge gap between pieces, I'll cut a new piece. There's no attention to detail, and I am _willing to pay extra_ for that. Charge me for the extra conduit or base trim.

I've actually entertained the idea of starting my own electrical contractor company and hiring/training ex-software engineers. I feel like we as a profession generally don't like sloppiness and most of us are nitpicky enough (myself included) to produce quality work. I can't be the only one out there that's happy to pay a little extra if they know they're not getting garbage.

For anyone who wants to see clear examples of these defects from an inspectors point of view… For a while I was completely addicted to watching inspection videos of brand new homes where the inspector shows poor craftsmanship and sometimes even dangerous defects - the best in the genre IMO is Cy https://youtube.com/@cyfyhomeinspections?si=zldoP3BpzK6mUzDc check out his YT shorts. Example after example of terrible defects in brand new homes in Arizona

Locally (rural Western Australia) we've faced the same shortage of builders relative to demand that many places have and new builds have increased in number while still falling short of demand.

Traditionally this state near the capital city has had a lot of double brick builds, more so than other parts of the world - due to a combination of the "right" soils and a long standing still expanding massive brick company (Midland Brick).

The greatest growth in "alternative" building has been in the factory built modular home area - not just dumpy dongars and demountable shipping container like homes, but multi part slide together modules that together make up a large "pre built home" - say, four large oversize truck loads each with a complete foundation (thick concrete floor) framed, walled, roofed, plumbed and wired chunk o'house that gets lowered slid and jacked in place, then all parts are pulled into together to make a seamless appearing whole.

It's a day to land, a second day to hook up to septic + water + power and drop verandahs and shading in place attached to the home.

That approach has seen a rapid increase in build time as the chunk parts are all created in large warehouse spaces with overhead crane rigs and racks of supply chain parts allowing multiple home builds to be interwoven in a pipeline that concentrates tradesmen and allows (say) an electrician to pull and plate several partial homes in a day or two.

The build quality (so far, from several I've seen) has been consistently up to code with a significant time and money cost saving to owner over other build methods.

I recently bought a home built by Lennar. The project manager kept telling me up until closing about how great the warranty was. He said that the drywall in the hallway going to the basement was going to be finished. When I reported this to the person who handled the warranty he said that the basement wasn't going to be finished. I reported some issues with the cabinets and he said they wouldn't fix it until the 11 month period since he said other things could break until then. He also tried to discourage me from getting an 11 month inspection. When I moved in the grass was almost a foot long and there was a vole infestation in the backyard due to the grass being long. Whenever someone talks about how there is a warranty I usually chuckle a little. The companies know how much it would cost you to sue them.

To be clear small builders have done things far worse in Minnesota. There's a builder on the South side of the Twin Cities that has left many homes with foundation issues. They're no longer in business. My issues look tiny compared to theirs.

This is not new. I just watched a video a few days ago talking about Levittown, built in the post-WWII boom, where the house lots were just big enough to build septic systems for each, given the current state of the ground/drainage. So as the soil compacted/absorbed the output of the houses, and as people installed washing machines, and and as people converted their attics to additional bedrooms (which they were originally told was fine to do) and occupancy/water use went up, hundreds (thousands?) of backyards became soft, smelly swamps. Eventually the whole neighborhood had to switch to sewers, at enormous expense.

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Not saying that these complaints aren’t valid, but this is PR dressed up as reportage by a short seller/litigation investor.

I bought a home a few years ago. We chose an older 1940's wood home near downtown in a California town. Its solid. Meanwhile, friends of ours have bought newly constructed homes with all the modern features, and the horror stories they have...

I've owned a range of 21st century construction in Texas. 2023, 2021, 2012 (current), 2009. The one built in 09 is easily the best out of the bunch. I'm currently looking at homes built in the 70s and 80s.

I've learned my lesson about cheap builds with 13 foot ceilings and gigantic rooms. I am over the scale of it all because the acoustics are so goddamned awful you can hardly sleep. Not one of these houses will ever have interior insulation or god forbid actual Rockwool installed anywhere, so the rooms resonate at frequencies that are impossible to mitigate. 13' ceilings have an axial room mode of ~43hz. Good luck mitigating that. Oftentimes the master bedroom has a dimension even larger than this. Your audio system might be tuned to avoid these ranges but traffic noise and the way the hvac system rumbles in your crawl space is much harder to. Pushing into infrasonic is only a viable option when you have an entire stadium at your disposal. This in between realm is awful. The inside of a Walmart feels better acoustically than many of the new homes built around it.

I am looking forward to having 9 foot ceilings and thick-ass brick all the way around again. I'll lose about a thousand sqft of living space and have to deal with all kinds of legacy issues, but at least it's built better.

>“You have to start value-engineering every component of the home, which means making compromises, not in quality, but in the way that you actually configure the homes,” Lennar CEO Stuart Miller said in an interview with Bloomberg Television last year.

>D.R. Horton similarly promised its investors it would find ways to cut costs, like “replacing certain high quality fixtures and finishes with less expensive yet still high-quality fixtures and finishes.”

Enshittification to the max

Companies enshittify in every sector to meet growth targets, and if you believe Bernanke the pressures on growth targets come from the global investment market struggling to find enough places to invest, but where does the undersupply of places to invest come from?

Is it just a civilization-wide structural incentive to overbuild investment capital relative to uses for it or is there a structural cause for inadequate quantities of reliable investment sinks?

Wouldn't surprise me. I live on a small loop that had a vacant lot next door to me (home burned down in the 80s shortly after construction and had stayed vacant until 3 years ago).

One of the big name builders in our county bought the land (we had only just bought our home next door and wish we had been in a position to buy the land) and through up the usual cubical blob with no eaves, no personality, and maximum possible square foot.

It's been three years and not two-three months has gone by without contractors being there to repair damage... fix the fence, fix the foundation, lift the foundation, repair drywall cracks, repair sagging floor, fix HVAC issues. All for the bargain basement price of $600K "builder grade" (Hah, once upon a time I was naive enough to think this meant high-end, not "cheapest shit that will pass code").

Almost all new homes in the last 20 years are terrible. Every builder cuts corners. Inspections often can’t see where those savings were made. And insurance or warranties won’t help for many of them. It’s a huge scam and needs legislation.

My experience as a homeowner with relatives in the construction trades is that any tract home / production builder will be equally shoddy. They don't need to be a large publicly traded company like Lennar, DR Horton, or KB Homes to do a terrible job, they just need the wrong incentive structure coupled with no enforcement of quality standards.

Realistically the only way to get a properly built house in the United States is to have a reputable custom home builder do the job, invest heavily in things like engineering up front to minimize geotechnical issues or structural issues that might arise later due to poor homesite choice or architect artistic overreach. That, or buy a well-built home that's already there from before we went fully into production building, which is really just houses made from around 1970 to 1995, before 1970 we were slapping up badly made houses to deal with the postwar boom and after 1995 we went fully into the corporate enshittification hellscape that we currently exist in.

Never, ever, skip an inspection, even on a brand new house, in fact that goes double for a brand new house.

Hmm. We (many of us, anyway) keep saying that the solution to housing shortages is to build more homes. But if they're going to be built badly, that somewhat lessens the value of that approach as a solution.