Technology is revolutionizing housing by introducing tech-enabled solutions, reducing construction and regulatory costs and removing transaction friction. Despite limited recent changes in how we build houses, the sector stands at the brink of a major transformation from these innovations.
New technologies such as full-size 3D printers are enabling the construction of concrete houses that offer disaster resistance, low labor requirements and improved insurability. Modular construction is gaining traction for its efficiency and cost savings, and could be further streamlined through robotics. Innovations in building materials and the use of AI to optimize raw material usage for traditional builders will all drive affordability through cost reduction and waste minimization.
AI could also be used by municipalities to speed up the processing of permits. Checking plans against local building codes could save builders administrative and legal review costs. Plans could be reviewed to determine compliance with existing zoning guidelines and, when they do not comply, AI could suggest redesigns that meet requirements.
Internally, AI has the capacity to quickly review local building codes to ensure consistency with state policy and identify obsolete regulations. In addition to these efficiencies, the city is already advancing technology-driven tools that support housing production. For example, the San Jose Housing Department will deploy a production data lake and a neighborhood-level production heat map designed by Policy Map in January 2026 as part of its Department Data Dashboard, offering developers clearer insight into local conditions and development opportunities.
Although the city does not directly build housing, these tools help facilitate and foster a stronger ecosystem for its production. Together, such innovations shorten timelines, provide greater certainty for builders and ultimately result in substantial savings.
As it relates to the buying and selling of a home, technology can be deployed to reduce friction in the transaction. The mortgage process is one of the most frustrating parts of the transaction. Imagine if you could fill out your application once and quickly and conveniently get preapproved. New technology will speed up the title process and allow transactions to close even faster than they do today.
Technology is reshaping every stage of the housing ecosystem, promising to lower costs, reduce delays and create a more efficient and affordable market. In some cases, the regulatory environment will need to adjust to allow for these emerging technologies to occur at scale. Land will always be a scarcity, so we need to find savings in other ways to create much-needed housing. More efficient building practices, faster approvals and greater certainty translate directly into savings for builders and ultimately for homebuyers.
San José Spotlight columnist Neil Collins is CEO of the Santa Clara County Association of Realtors, a trade association representing more than 6,000 real estate professionals in Santa Clara County and surrounding areas. Contact Neil at [email protected].
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