The landscape of home buying is undergoing significant changes as the National Association of Realtors reports a surge in median household income for home buyers, reaching $107,000 this year. However, the supply of homes in the U.S. has hit a record low, presenting challenges for prospective buyers.
In response to the increasing cost and diminishing supply of homes, startups like BotBuilt are leveraging technology to revolutionize homebuilding. Founded in 2020 by Brent Wadas, Colin Devine, and robotics engineer Barrett Ames, BotBuilt aims to introduce a robotic system that streamlines the homebuilding process.
Ames, drawing on personal experience, highlights the housing industry's struggle with a shortage and the need for rapid construction to meet demand. He emphasizes that rising interest rates discourage people from leaving their existing homes, further fueling the demand for new housing.
BotBuilt's innovation focuses on a specific aspect of home construction: framing. The company's robotic systems piece together panels for walls, floor trusses, and roof trusses, offering flexibility and reprogrammability at an estimated cost of $1 per hour.
Ames argues that by automating the framing step, BotBuilt's system can significantly accelerate the pace of homebuilding while reducing costs. Traditional framing, taking about a month and costing $7 to $16 per square foot, faces challenges like weather disruptions and skilled labor shortages.
BotBuilt doesn't sell its frame-building system but operates robot-equipped factories to produce framing for homebuilders. Ames notes that their robotic labor empowers builders, enhancing both volume and margin while providing high-quality and affordable construction components.
While acknowledging competition from other robotics homebuilding companies, BotBuilt has started its journey by building nine homes, generating around $75,000 in revenue. Ames envisions a ramp-up in 2024, with plans to ship trusses and scale general operations.
To support this growth, BotBuilt has secured $12.4 million in seed funding, valuing the company at $35 million post-money. The funds will be directed toward expanding the team from 13 to about 20 members, underlining BotBuilt's commitment to transforming the homebuilding industry through innovative robotic solutions.
