Commercial Insights

How technology is reshaping the industry for homebuilders

Technology, including AI, is helping homebuilders realize key efficiencies, in everything from building processes to transparency in financing.

Key takeaways:

• Profitability pressures are accelerating technology adoption
  Economic volatility, rising costs and supply chain challenges have pushed homebuilders to embrace AI and digital tools to protect margins.
• AI is driving efficiency across the entire building process
  From pricing and scheduling to design and construction, AI helps builders reduce delays, improve accuracy and better predict project outcomes.
• Faster build cycles are a major competitive advantage
  Real-time design updates and AI-driven manufacturing enable builders to shorten construction timelines and lower overall costs.
• Digital tools are transforming marketing and transactions
  AI-powered marketing strategies and electronic automated real estate transactions are helping builders reach buyers more effectively and close deals faster.
• Technology is reshaping construction financing and banking relationships
  Digital platforms like Regions’ Built solution provide real-time visibility into financing, streamline loan administration and enable faster, more informed decision-making.

Homebuilders have faced significant challenges in recent years from a combination of economic, operational, and regulatory pressures. According to David Jewell, Head of Homebuilder Finance at Regions, regardless of the source, the common denominator is the risk to profitability.

“The past five years have been a catalyst for homebuilders as they’ve sought new ways to protect their bottom line,” said Jewell. “Since the onset of the Covid-19 pandemic, the industry has faced supply chain disruptions, elevated inflation, rising costs and broader economic volatility. Builders have had to reevaluate their processes and leverage technology to ensure they can continue delivering quality homes while protecting margins.”

As a result, there has been a marked increase in adopting technology platforms, with artificial intelligence (AI) having perhaps the most pronounced impact.

How is AI reshaping the homebuilding industry? (4 key use cases)

1. Streamlining scheduling and pricing estimations – For homebuilders, time is money, making cycle time management a critical driver of profitability. Many builders are using AI to streamline pricing estimates and scheduling while improving visibility into vendor comparisons and material costs. “The primary benefit is that it gives builders greater insight into their expected margins by the time a home is completed and ready for sale,” said Jewell.
2. Marketing strategy – AI has transformed the way many builders and mortgage lenders think about marketing their product. “AI is fundamentally shifting homebuilder and lender marketing strategies. Previously reliant on realtor channels and signage, builders can now leverage AI to market directly, improve positioning versus peers and capture demand through owned platforms—with meaningful upside still ahead.”
3. AI-driven manufacturing – While it may require a significant upfront investment, building in a controlled environment is another way homebuilders can improve margins by reducing material and labor costs. By leveraging robotics and AI-driven manufacturing, builders can produce wall panels, trusses and other modular components in facilities free from weather delays, with a more stable workforce and greater quality control. This can reduce material waste, shorten cycle times and lower carrying costs. “Builders with the capital to invest and the scale to operate these facilities efficiently are generally seeing positive margin results,” said Jewell.
4. Digitizing real estate transaction processes – The rise of technology that eliminates physical signatures and traditional manual analog processes has significantly reduced transaction timelines—not only for homebuilders, but also for attorneys, mortgage lenders and other parties involved in real estate transactions. “Leveraging platforms that digitize end-to-end processes is helping reduce closing times,” said Jewell. “AI is also improving mortgage underwriting by streamlining workflows, reducing manual tasks and accelerating borrower qualification—ultimately shortening cycle times.”

Why technology matters in homebuilder banking relationships

Streamlining processes isn’t only important in terms of construction builds – it also matters in the back office. That’s where relying on a banking relationship that prioritizes technology can play a pivotal role.

“The homebuilder finance space is a highly administrative, high-touch business. In the past, builders often had to contact their bankers to obtain information on their lines of credit because the process relied on manually pulling data from the bank’s loan system,” said Jewell. “That has changed with the advent of digital banking technology, which provides clients with real-time visibility into their financing through online platforms.”

Regions’ centralized digital platform – powered by Built – is a real estate and construction finance portal that streamlines the flow of money and information to support how projects are financed, developed and managed. It helps clients make faster, more informed decisions and connects lenders, investors, inspectors, and other stakeholders, significantly simplifying loan administration.

“There are significant advantages for homebuilders in having direct access to their financing information whenever they need it. With Regions’ platform, clients can log in to review their credit facilities, sublimits, project details and collateral information, enabling them to make faster, more informed decisions about future business,” said Jewell. “The platform also helps accelerate loan draws by integrating the necessary parties and automating key steps in the process.”

Built represents a major departure from how homebuilders and stakeholders operated even as recently as five years ago, and it also offers a glimpse into the future of the industry.

“Regions is tremendously fortunate to have been able to collaborate with Built to identify pain points in the financing process and develop digital solutions, with the result that we now have a platform that will guide and ease the path forward,” said Jewell. “For homebuilders, when time is margin, having visibility and connectivity matter.”

Ready to help

Regions helps homebuilders operate with greater visibility, move faster on critical decisions and manage capital more effectively in a dynamic market. Through digital platforms and integrated financing solutions, we help connect projects, teams and capital—so builders can confidently execute from land acquisition through final close.

Regions Homebuilder Finance provides financing solutions for new home construction, lot purchases, acquisition and development, along with a dedicated team focused on supporting your long-term success. Connect with our team to learn how we can support your business.