Home Store

HomeStore Home ownership for America’s working families A BUSINESS CONCEPT SUMMARY

Detroit thought the route to success was building bigger and bigger SUVs. Toyota, on the other hand, came out with the Prius. Isn’t it about time that someone came up with the Prius of affordable housing?

Challenge

The Problem
$41,340: national median income.
$381,250: median King County home price - growing faster than salaries.
High energy, gasoline, and housing prices drive demand for housing alternatives.
Affordable housing options drive longer commutes, impacting quality of life.
Families with limited incomes trade commute time for safety and security, increasing traffic and environmental impacts.

Concept

Home Store is a profitable business model for affordable, healthy, and sustainable residential communities in both urban infill and suburban green field developments.

The Home Store Concept COMMUNITY Panelized construction systems Next Home design Resident driven development Seller financed property acquisition CONSTRUCTION DESIGN LAND ACQUISITION

Next Home design
Flexible and sustainable
Adapts to diverse cultural and life-cycle needs
Adapts to both infill and large-scale land use applications
Reduces construction costs, eliminating 40% of materials waste through design
Energy efficient

Panelized Construction Systems
High quality, high efficiency
Ensure high quality, consistency, and reliability through production quality control systems
Reduce construction costs, by up to 25%
Shorten construction timelines
Minimize financing costs
Eliminate waste

Resident driven development
Builds healthy, safe, self-sustaining, communities
Sites woven into fabric of larger community
Clustered design balances privacy and community
Pre-selling reduces financing costs, and builds community based on relationships, promoting neighborhood safety and social well-being
Participatory design process teaches homeowners to effectively manage features and budgetary constraints, teaching financial literacy, home design, and maintenance

Seller financed property acquisition
Target market
Small real estate investors
Community organizations
Minority real estate investors
Seller financed loans
Subordinated mortgages
Installment contracts
Option agreements
Engage seller as partner
Reduces up-front costs
Yields higher ROI to seller over property market value

Scenario
1/2 to 1 acre of land
Twelve “stacks” of one to three units each
720 sf 720 sf 720 sf 1440 sf 720 sf 720 sf 1440 sf 2160 sf 720 sf 720 sf 720 sf 1440 sf 720 sf 720 sf 1440 sf 2160 sf 720 sf 720 sf 720 sf 1440 sf 720 sf 720 sf 1440 sf 2160 sf $350, 000 $125, 000 $225,000 $240,000 $110, 000 $125,000 $115, 000 $110, 000 $350, 000 $125, 000 $225,000 $240,000 $110, 000 $125,000 $115, 000 $110, 000 $125,000 $115, 000 $110, 000 $240,000 $110, 000 $125, 000 $225,000 $350, 000

Scenario economics

Market Strategy

Pricing Strategy Based on Median Area Incomes (MAI) customers can afford these purchase prices, and are pre-qualified at 30% of income.

Target market: studio/1 bedroom
Single women, young couples, older adults (single and couples) aging in place
600 square feet
$110,000 purchase price
$912 Monthly mortgage payment
Affordable by individuals and couples at 70% or higher of King County MAI

Target market: two bedroom
Families of 3-4
1200 square feet
Affordable by families of 3-4 at 100-120% or higher of King County MAI

Target market: four+ bedroom
Large and extended families
2160 square feet townhouse
Affordable by families with at least 3 working adults at 80-120% or higher of King County MAI

Target market: 1 bedroom + workspace
Couples and small families with home-based business
1200 square feet studio/1 bedroom unit
Affordable by couples and families of 3 at 120% or higher of King County MAI

Long range vision

The Home Store long range vision Panelized construction systems Next Home design Resident driven development Seller financed property acquisition HOUSING FACTORY HOMEOWNER LITERACY WORKSHOPS RETAIL STORE SELLER OUTREACH STRATEGIES

Next Steps

Objectives
Develop pilot business plan
Identify partners
Develop pilot site totaling 12-30 housing units in South Seattle/White Center
Evaluate lessons learned
Develop rollout business plan

Home Store

by Carlos Gasca on Jan 09, 2009

Accessibility

Categories

Upload Details

Usage Rights

1 Embed 3

Statistics

Home Store — Presentation Transcript