As excitement builds around real estate as a potential safe haven in an AI-disrupted economy, a contrarian concern is gaining traction: what if AI, along with robotics and 3D printing, ends up hurting real estate too?
This fear centers around one idea — that new technology will radically reduce the cost of construction. And if building becomes dramatically cheaper and faster, the value of existing properties could fall. It’s a valid concern. In fact, the technologies already exist today. 3D printers can lay down the shell of a house in a matter of days. Robotic machines can frame, paint, or even install drywall. AI is already used to optimize floor plans, manage construction schedules, and reduce labor and material waste.
Just look at the video below:
Despite all this, most builders still aren’t using such 3D printers. And even where they are, the actual cost savings are far smaller than headlines suggest. So before writing off real estate as vulnerable to a new wave of construction tech, it’s worth looking closely at what’s really happening — and why the risks are far more limited than they may seem.
1. Land Is the Primary Source of Real Estate Value
The most important and misunderstood factor in real estate valuation is that structures depreciate, but land doesn’t. The majority of real estate value in high-demand markets comes from location, not construction cost.
Even if you could build a house for half the price, it wouldn’t make oceanfront Malibu property cheap. You’d still have to acquire the land, which is inherently scarce and increasingly regulated. The same logic applies to any city with tight zoning or entitlement restrictions.
Lowering the cost of a building by 20% doesn’t change much when the land underneath it represents 70% of the total value.
2. These Technologies Work Best for Simple, Low-Cost Builds
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