The term Moonshot is a bit overused in marketing circles, but in the case of Austin-based startup homebuilder Icon, it’s not just applicable…it’s actually true.

That’s because this rapidly growing pioneer in 3-D printer based homebuilding has just signed a $57 million contract with NASA to develop, and eventually build out the lunar infrastructure. This would include, roads, landing pads and habitats. The project, which builds upon the already existing relationship between NASA and Icon will be based on the use of local (extraterrestrial) materials to build settlements and related infrastructure on the moon, and eventually Mars.

The process will involve the transportation of Icon’s hardware and software via a lunar gravity simulation flight in order to work with lunar materials which were brought back from Apollo missions in order to develop the methodology necessary to put the plans to work in real time.

Software, Materials, and Robots

Icon’s structures are built via a combination of proprietary hardware and software developed by Icon called the Vulcan 3-D printer coupled with Magma, a portable cement factory which creates Lavacrete, the cement which is deposited by the 3-D printer in order to create the home’s frame. All aspects of design and construction are controlled by the company’s BuildOS software.

The process is based on the transformation of the digital architecture design in BuildOS into instructions for the Vulcan 3-D printer system to follow. The framing process can often be accomplished within 8-10 days.

Icon unveiled, its House Zero project in March 2022. The house is 2000 square feet, three bedroom, one story with a 350 foot accessory building next door. The company has also built homes for non-profit working with the homeless in Austin, as well as in Mexico.

In 2021, Icon delivered a 3D a simulated Mars habitat.

Home on the Range

While the moon mission grabs the headlines, Icon’s been busy at home, where in partnership with Florida-based Lennar (NYSE: LEN), it has developed a 3-D printer built community in the Austin suburb of Georgetown; part of the Wolf Ranch development. Reservations for new homes begin in 2023. The homes will be powered by solar energy and are billed as being state of the art energy efficient.

Perhaps what makes 3-D building from other home construction strategies is that a 2,000-plus square foot home could be built in a period of days. There are some limitations, however, such as some areas of the home will still require traditional framing. Costs, at least at the start of this new phase of the development process are still difficult to assess.

On the other hand, these are some indisputable pluses:

• 3-D homes area able withstand nature’s fury such as earthquakes and storms better than traditional frame homes. This might make them increasingly attractive in coastal areas, such as Florida;
• Architectural uniqueness is a foregone conclusion given the design process and requirements;
• Digital building allows for last minute design changes;
• Less wasted materials improve environmental consequences;
• Potential 40% cost reduction including labor and materials once the process reaches appropriate scale.

On the down side, 3D construction does not include the cost of foundations or roofing. Moreover, windows, doors, electrical wiring, painting, and other finishes would be subject to market prices at any one time.

The company also notes that a home that is framed in June may take as long as 8 months to be fully finished out.

Lennar Doubles Down on Icon

It’s early days for 3-D building, but one major homebuilder, Florida based Lennar sees a future in the process, as it took part in the latest funding round for Icon, although the details of the relationship were not disclosed.

Lennar, for its own part has been weathering the storm in the housing market that has resulted from the Federal Reserve’s interest rate increases and their negative effects on mortgage rates.

I’ve written about this situation recently, especially in terms of a potential rebound in housing due to the recent decline in mortgage rates.

Specifically, it will be interesting to see how any decrease in mortgage rates, especially if it lasts into 2023 will affect Icon’s ability to sign up customers for its Wolf Ranch development.

This is especially prescient based on a review of the Georgetown web site from competitor builder David Weekly, which compares its prices in nearby areas to those of Wolf Run. Interestingly, many of the prices from competitor builders using traditional framing and building methods start at lower prices than the Icon/Lennar homes.

Some of this is based on the sizes of the homes. For example, Weekly’s homes start at 1500 square feet with prices near $400,000. Meanwhile, Icon homes at Wolf Run start at 2200 square feet for $597,000.

Icon is privately held, but Lennar’s shares have recovered recently as investors start to price in the return of buyers to the homestead as mortgage rates have dropped.

Bottom Line

Icon may be onto something with its 3D printed homes, both on Earth and perhaps throughout the nearby Universe.

There is a lot that remains to be developed, tested, and built. But, given NASA’s money and Lennar’s interest in the company, this is not your average startup.

I’ll be watching the Wolf Run development’s progress and keeping up with news on Icon.

I own shares in Lennar in my private account.

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