How is AI Transforming Homebuilding with Will Zhang of Openhouse.ai

Speaker 0: with them.

Speaker 1: now after talking with you, the home building industry seems like a natural place, but i would not have thought, hey. let's apply ai to this industry. how is ai transforming the home building industry today, and how do you see open houses, role in this changing?

Speaker 0: so if you think about industry, like, there are three problem we solve for them, today. so a home builder actually while people are saying, well, home builder, land developer, they're actually not a high margin business. just kind of like for those who are not in home building. it took us a long time to learn. a major home builder typically have twenty to twenty five percent gross margin per home unit, but that's just gross margin. their net margin is between seven to thirteen percent. now if you compare that to many other industry like entertainment or retail business or even tech industry, typically, is actually eighty percent gross mark no. gross margin. you can see home building actually the margin is very, very small. there therefore, that's why i would say there's not not enough homebuilder to building homes and houses for the market, unless we all say that government use taxpayer money to build houses, which is part of the solution but not cannot be total solution. it has to be more participant, more player to come to build more houses for the masses, but they're not very profitable business compared to our industry. now then we actually look into that. how do we help the home builder to become more profitable and building better house for the market more efficiently? this come down to three element. how do you increase your gross margin? how do you reduce the construction cycle time so that you can be more efficient and you can turn your capital more time within a year without, increase of overhead. that's the key things. right? so if increasing overhead, your margin gonna erode it, and it's actually very difficult to move forward. and the only solution is ai. the only solution is ai to basically predict where the market is coming from and where the markets will be going, sorry, and what would be the potential future home that actually best fit you to market so you can create more value. but at the same time, controlling cost, anticipating and better organize your trade partner so that they can be on more efficient. they can reduce their price. that's the gross margin piece. but, also, how do we strategically prioritize the scheduling and operation that's in the outside field unlike a factory that you're getting right people, right material at the right time so that they can batch process the construction? that's a huge game changer. so, and then leveraging a lot of automation so they don't have to increase your overhead. that's where we see ai is actually complete changing again for the industry.