Prompt 2:
Construction & Design Innovation
Competition Prompt: Reducing the Cost of a Home
Propose an innovative construction and design solution to reduce a home’s cost and demonstrate how your solution can be applied to a small home (accessory dwelling unit or “ADU,” starter home, micro unit).
Context
Reducing the cost of a home and demonstrating how it can apply to a “small home”
Home prices in the U.S. have reached record highs, pushing affordable homeownership further out of reach for many, especially for first-time buyers or those seeking to downsize to smaller homes. Rising prices are influenced by land costs and construction costs, both of which have increased significantly in recent years due to inflation, material shortages, and labor shortages.
Innovation can combat rising prices from inflation, material shortages, and labor shortages. These cost savings come from innovative materials, new methods, different housing types (e.g., building a fourplex instead of a single family home), and efficiencies from new software or other technology. These innovations can have a significant impact on reducing the cost of building a home. These cost savings can and should be applied to small homes such as an accessory dwelling unit (ADU), starter home, or micro unit.
Why is construction and design innovation difficult to implement?
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Resistance to Change: Construction and design innovation is notoriously difficult to implement due to a combination of regulatory barriers, financial risk, and market hesitation.
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Fist-Mover Risk: Developers, municipalities, and funders often wait for someone else to take the first risk, leading to a lack of early adopters and limited proof-of-concept projects.
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Regulation: Local building codes and zoning regulations are frequently outdated and/or inflexible, making it challenging to approve or permit new materials, construction methods, or housing types.
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High Risk: Additionally, funders and lenders tend to be risk-averse, preferring familiar models with predictable returns over untested approaches.
This creates a cycle where innovation is restricted not by lack of ideas, but by an ecosystem that discourages experimentation. This is especially present in small homes, where profit margins are tight and risk tolerance is low.
The role of construction and design innovation in improving affordability
Historically, innovation in construction and design has played a key role in expanding access to homeownership. Programs like Sears Modern Homes made compact, ready-to-assemble houses available by mail in the early 20th century, lowering barriers for first-time buyers. After World War II, developments like Levittown used mass production techniques to rapidly build small, efficient homes for returning veterans. Over time, innovations such as engineered wood, panelized construction, and digital design tools like building information modeling (BIM) have helped streamline the building process, reduce waste, and lower costs. New housing typologies—like accessory dwelling units (ADUs) and micro-units—have also emerged as flexible, space-efficient options. These efforts, led by both public and private sectors, are central to meeting the demand for affordable small homes.
Today’s affordability challenge
The affordability challenge for small homes is grounded in design and construction. There is a misalignment between what the market builds and what buyers can afford. Homes are often too large, expensive, or inefficiently designed. Historically, construction practices tended to prioritize scale and luxury over simplicity and cost-efficiency, while permitting and zoning regulations often restrict more affordable typologies like duplexes, ADUs, or smaller-footprint homes. As mentioned above, the risk of innovation continues to limit the potential cost savings. As a result, design and construction practices have not kept pace with the needs of today's middle-income households.
This prompt challenges you to propose a new construction or design solution that can lower the cost of a home with applications for Accessory Dwelling Units, starter homes, or micro-units.
Solutions to inspire your brainstorming process
The organizations below have innovative construction and design solutions that support reduced home prices as well as concepts that can be applied to small homes. In addition to speaking with our industry experts, these solutions may be a source of inspiration as you brainstorm your ideas.
1. New Building Methods
Reframe Systems (2025 Ivory Prize finalist) exemplifies innovative approaches to construction through its offsite, panelized building system. By manufacturing wall, floor, and roof components in a controlled factory setting using robotics, Reframe reduces material waste, shortens construction timelines, and delivers higher-quality housing at scale. Offsite construction methods like these have the potential to address labor shortages and improve housing affordability by streamlining the build process from start to finish.
2. New Building Materials
The Lower Sioux Indian Community’s Hempcrete Program (2025 Ivory Prize finalist) integrates sustainable, locally grown hemp into home construction, creating energy-efficient, carbon-sequestering building envelopes. Hempcrete’s insulating and moisture-regulating properties can lower long-term utility costs while reducing reliance on high-carbon traditional materials. This program combines environmental stewardship with cultural preservation by supporting regional agriculture and indigenous economic development.
3. New Typologies
The Casita Coalition (2021 Ivory Prize finalist) advocates for expanding “missing middle” housing types—such as duplexes, triplexes, bungalow courts, and small multifamily buildings—that bridge the gap between single-family homes and large apartment complexes. These housing forms can increase density without altering neighborhood character, provide more attainable options for middle-income households, and help diversify housing stock in communities struggling with affordability.
4. New Software and Technology
Canvas (2024 Ivory Prize finalist) brings robotics and automation to the construction site, using advanced drywall finishing systems to improve speed, quality, and worker safety. By augmenting skilled labor with robotic tools, Canvas reduces physical strain on workers and mitigates the impacts of the construction labor shortage. Emerging technologies like this are reshaping how projects are delivered, creating opportunities for faster, safer, and more cost-effective building.
Getting Started
To develop a strong proposal, begin with the following steps:
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Choose the Right Prompt
Review the available prompts and select the one that most excites your group and aligns well with your team’s background, skills, and interests. -
Understand the Landscape
Investigate how this problem has been addressed in the past. Use the examples above as a starting point and explore additional case studies, organizations, policies, or innovations that relate to your chosen prompt. -
Brainstorm and Build
Think creatively. Generate new concepts or identify ways to improve on existing solutions. Focus on ideas that are both impactful and practical. -
Engage with Industry Experts
Attend sessions with industry professionals to refine your thinking. Use [this link] to view expert office hours and availability. Come prepared to share your idea and ask for constructive feedback. -
Iterate and Strengthen
Based on research and expert input, continue to refine and develop your proposal. A great idea becomes stronger through thoughtful revision and collaboration. -
Consult the Ivory Innovations Team
Reach out to the Ivory Innovations Team [using this method] to workshop your idea and receive early input on structure, feasibility, and presentation. -
(Optional) Use the Pitch Deck Template
You can find a suggested pitch deck format [here] to help organize your final presentation. It includes these slide titles, which we encourage all teams to consider as they craft their pitch decks:-
The Big Idea
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Who It Serves
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What It Solves
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What Makes It Possible
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