Freakonomics Radio 566. Why Is It So Hard (and Expensive) to Build Anything in America?
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Nov 23, 2023 
Chad Syverson, an economics professor at the University of Chicago, Ed Glaeser from Harvard, and Vaughan Buckley, CEO of Volumetric Building Companies, dive into the perplexing inefficiencies of the U.S. construction sector. They discuss why construction productivity has stagnated since the 1970s, explore the potential of modular and prefabricated solutions, and share insights on the impact of regulations and labor dynamics. The conversation challenges preconceived notions about modular designs and highlights innovative approaches to address housing shortages.
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Declining Construction Productivity
- Construction productivity has fallen significantly over the past 50 years, unlike other industries.
- This decline has societal impacts, affecting citizens and the economy.
Construction Productivity Anomaly
- U.S. labor productivity typically increases by 2% annually over the long term.
- However, construction productivity has been declining for 50 years, which is unusual and concerning.
Multiple Factors Affect Construction Productivity
- Several theories attempt to explain declining construction productivity, including regulation and labor market issues.
- No single factor seems solely responsible, suggesting a complex interplay of factors.
