Who's the target customer for this?
Who's the target customer for this?
If I had a flat lot that was accesssble, I would look into this further.
In my town, even with the protections Gov. Neusome provided, getting an ADU is still a hassle.
In my town, rich people are using ADU's to add square footage to their existing houses. Some are actually successful with getting a variance, if they kiss enough ass. Or, know someone on that council, but I can't prove this alleviation now. I could a few years ago. Variances are over $1000, and until recently very few, like less than 1 percent, were granted. The town kept those fees though. Gotta keep those fees, and fines.
That said, it's still a rich man's game:
1. Council members go over every aspect of your ADU.
2. They even had the gall to ask an older homeowner whom will be living in the ADU. The guy said it would probally be a attendant, but felt he didn't need to discuss his medical history on tv. (San Anselmo tapes their meeting. I guess it's for litigation fend offs? If that's the case, they are not doing themself's any good. They are obviously biased.)
3. The town has a right to tell you what color paint your addition will be.
4. The town tells homeowners to go to their neighbors, and basically beg for their remodel.
5. The town can determine where you place windows.
6. The town can tell you what kind of roof they will approve.
7. The town can tell you what kind of siding to use. Better not use stucco, if they want wood?
8. The town can dictate what plants you use around unit.
(I'm conflating an ADU, and a remodel--a remodel usually requiring a variance. I'm not sure how difficult is is to just put in an ADU. If any town signed off on these modular units, they are quite a buy. I have my doubts.)
We worked out that it would cost us $30k in fees, and required spending before we could even dig the footers. Things like a soil test, inspections, variance’s etc.
You can always build an ADU, but it’s a rich mans game. And not really accessible to most people. We calculated our unit to cost roughly $80-90k, and would be almost 2x $/sqft of our home. A remodel made more financial sense, but the above problems still persist.
This is a feature not a bug.
They don't want people who can't writing a 30k check doing development.
They want the old elderly couple of limited means to move out and make way for some yuppie who will pay big taxes, not slap a bottom dollar ADU up so that they can be cared for by live-in relatives.
That's why they want them out. To replace them with someone who pays big $$$$. What's so hard to get about this?
They don't want them moving their caregiver into an ADU. They don't want them renting their ADU to supplement a fixed income. They want them gone. Since they can't tax them out they just prevent them from making money on their land value (via zoning) and let the COL do the rest.
>and can spend their life blocking housing for new middle class families (and they do, all the time).
The elderly sometimes do this but they are mostly scapegoats. The primary culprits are the 30-something on up through middle aged crowd who still need to work and need property values to remain high long enough that they can cash out of the ponzi scheme and retire to elsewhere.
I'm not with you on the guy whom justs wants to remodel, with no increase on footage.
(I don't like the increase in Permit fees either. It prevents basic upkeep on a home. Towns/cities know they can increase revenue by raising fees on anything. That's why we have $270 green righ turn citation. (you can only turn left on a green in certain situations. You need to wait for a green arrow.) If a county can't afford to fund employees, especialy nonessential personnel--fire them. We are not running a charity ward, as they like to say when asked about helping the homeless?)
Most builders of spec houses intentionally buy just a few scattered lots in many different neighborhoods - that way they can build the same house they always build, yet not neighborhood has two houses that look alike. But there are neighborhoods where all houses are built exactly alike...
It’s obvious if you’ve ever set foot anywhere south of San Francisco: depressing, no common architectural style, really dumb land use, yet somehow you’d need a million permit to change a window on your house.
Having to say "Number 12702" really isn't the same.
This was my thought as well. Seems like a quick and dirty solution to getting a house on an existing lot for immediate move in.
If you're cost conscious then going the longer term route of building your own might be better.
About one-third of the cost of new multifamily development is typically tied up in zoning/permitting/planning processes. Against that backdrop, ADUs -- particularly if the city pre-approves designs, which seems like something this product would be ideal for -- are a growing part of housing inventory and housing affordability in many cities.
Educated twenty-somethings don't have much of a future to look forward to. They can't even afford the land to put an Accessory Dwelling Unit on, they'll have to rent one from an existing home owner. They will be living on a salary that stalled in the 90s, dealing with ever rising food and environmental costs, and subsisting in a world where we have a perma-health watch reducing their freedom to socialize.
[1] https://www.ft.com/content/1c7266b1-1fad-458e-8585-12dc3164f... https://nationalpost.com/news/postpandemic/its-only-the-end-... https://www.cnbc.com/2021/01/13/moderna-ceo-says-the-world-w... https://www.businessinsider.com/when-will-the-pandemic-end-d...
I guess 'dwelling' and 'unit' don't have all those connotations to you?
Why not just say 'home'? Even 'Accessory Home'.
Guess it comes down to your target audience. If you're market primarily consists of landlords looking to make rental income, ADU seems to fit the bill.
We were close to pulling the trigger with a builder last fall and it was going to be around $180/sqft, and it was a custom build, and included around .8 acre. Lumber and material spike through the winter here has put that on hold (and put a lot of their building on hold) and we might not be able to afford a revised price when things 'get back' to normal. We'd actually had plans sent to an engineering firm who came back and said "you have to redesign this, because some of the foundational materials aren't available, and won't be for at least 6 months". So we couldn't even get a final price had we wanted to, without revising the original plans, and... there was no guarantee that whatever the redesign included would be available at that point (possibly now it would - this was back in March/April?). We're basically in a holding pattern for a bit longer (as are some of the other customers they had lined up).
At a granular level maybe some comparisons are possible.
The original premise of the comment above that because it’s not the same as where I am.. it can’t exist anywhere else is all I was shedding some light on.
Before COVID I just built a fully custom house in the OKC area for $142/sq. ft. including all my upgrades (base was $135 including land in a subdivision). Prices have definitely gone up due to lumber and are now in the $155-165/sq. ft. range base including land.
I mean, it's an ADU, designed to be small, but would basically have the same fixed costs (appliances, plumbing, electrical) of a house twice the size, and I'm sure the manufacturers could make a house twice the size with only a marginally increased cost. But keeping it small is obviously ideal for people with limited yard space who are using this as an ADU.
This headline caught my eye as I'm interested in how the fuck people are going to afford homes in the near future. I am disappointed. The "home" is not somewhere young people can raise a family. It appears to be aimed at home owners who want more home which is entirely uninteresting to me.
The modular home does not innovate in the way an iPod uncovered a new consumer market. It does not exercise a cost advantage, or size advantage, nor does it out-compete a double-wide in terms of locatability.
It's really just a stylistic advantage that wealthy people will find appealing. So putting "ONLY $50k" in the headline is misleading as that is not the real story here.
factory construction alone is a huge innovation - and if they have figured out a way to solve some of the transportation and assembly issues in a creative way they will literally be solving the biggest barrier to factory home construction.
Factory constructed modules are far more consistent and can be of far higher quality that field construction. The biggest factor - your building indoors out of the weather! Factory constructed parts can be built on jigs, making the resulting product a lot higher quality and more consistent. Finally factory construction makes creating specialized tooling that speeds construction while increasing overall quality financially feasible.
The big bugaboo with factory construction is getting the thing from the factory to the job site - and that's something they have a new take on and is what's really exciting. Within the next year or so I will be looking for a new house. If I could get a lot and plop something like that on there I would love it.
Thus is such a bizarre complaint. So what, of course not all housing types are for people in all situations. But a primary reason housing costs are so high is there is simply not enough housing. If something like this became popular and added considerable density it would make housing generally more affordable for everyone because currently unused land would have people living on it.
I hope they don't stop there because I think there is a huge need for simple two bedroom one bath or two bedroom one full and one half bath layouts for single people or couples where you can use the second bedroom as an office or guest room. Not everyone has herds of kids running around. Nor do I need separate formal living or dining rooms. And I absolutely do NOT need two stories. Stairs suck for everyone but the builders who get to pile more square footage onto smaller lots.
This looks to be their first foray into this kind of modular housing. I will be keeping an eye on them - if they do come out with something slightly bigger like I talk about above then I could be very interested. Indeed I'm thinking of moving and there is a decent lot in the community I'm looking at where a micro house like this would be perfect. Just prepare a slab with the utilities and call them in. It's very appealing.
Quality control is the biggest thing that this kind of housing solves and why I'm very keen on them being successful. I've got friends with modular homes where the modules (walls as units, entire smaller rooms, entire sections of the roof) are built in a factory and the results are a LOT more consistent and the houses go up a lot faster too. Speed of construction is significant. My current house was stick framed on site. The main subfloor in my current house was open to the elements for almost a month while it was under construction. I'm surprised my stairs look as good as they do as they were exposed for weeks too. The amount of time it takes before at least the roof sheathing goes up is pretty vexing. I was here every day as the house was being built and I got a pretty good framing crew (I also brought them snacks, water and a few cases of beer at the end of the day - building rapport with people goes a long way) - some of my neighbors who were more hands off had all kinds of structural issues later where stuff was framed wrong and wasn't caught by the building inspectors or their home inspectors. If people even bothered with a home inspector; I found one that used to be a building code inspector and he caught a load bearing wall that was under framed under my dining room - so even though I was scrutinizing the crap out of stuff and was here every day even I missed it. When you have the same components being made in factories - indoors out of the weather, on jigs with specialized tooling, etc. you get dramatically more consistent results.
Factory building modular components removes A TON of variables.
I could see them being able to design customizable and modular homes where you pick the various parts of your home and link them up - want three bedrooms instead of two or one? Pick a different mix of modules. Roofing would be the biggest challenge but there are probably some solutions there with a little creativity.
Next to a house, a car is the 2nd biggest purchase most people make - could you imagine if four different trades showed up over a few weeks with various parts and assembled a car in your driveway? It's kind of nuts when you think about it...
I agree with the iPod analogy.
Certainly beats bringing a pile of raw lumber to a job site and constructing crap from scratch in the open elements for a few months before you get it closed in!
80% people who want the ease of setup of a double wide but really, really, really want to visibly distance themselves from the stereotypes and can afford to pay a premium and give up a lot of square footage to do so. (There's a reason this is on the front page of HN.)
20% developers who will pay big bucks to skirt some local busybody ordinance that says "no trailer homes".
Pricing ADUs is tricky because the some of things in a house cost same for a small to medium size home. For example, the costs of plumbing, electrical, kitchen, bathroom, etc are more of less the same between a 500 sq.ft. house and a 1000 sq. ft house.
Don't larger houses have multiple bathrooms, thus not the same cost for plumbing? At least when I watched Selling sunset, it seemed it's about having at least 3-4 bedrooms and 4 bathrooms in a house...
Or someone who thinks it's the future and love telling his or her guests about it. Or someone who's fascinated by IKEA furniture.
They also seem to be getting into the tiny house game: https://dornob.com/flat-pack-ikea-house-built-shipped-for-un...
There were even tent cities for people there after the flooding.
Yes, these modular houses would have been quite welcome there.
A tangent question to this is "how easy is it to undo it?"
A guy I know wants to do some major renovations on the house - gut it and fix it. It will take a year or two to do. In the meantime... where do you live?
Another situation where this could have been useful would have been Biloxi after Katrina where, again, housing is needed in short order.
To answer your question, one possible target customer is the rich (wo)man who wants a cabin house far away but something more comfortable than a cabin house.
Small aside, I just looked up what houses look like in other parts of the world. Very few look like houses found in the US.
There is simply no comparison. Buying an RV to park it permanently would be daft.
'Person' is the non-gendered word that goes here.
Point being, perception of a word can be more meaningful to some people than the historical meaning.
Good 'ole prescriptive vs descriptive linguistics...
For example, some have claimed that if we had no separate terms for "man and woman", "male and female", etc, we'd be unable to perceive a difference between the two.
> the etymological root was gender neutral, with a separate word attested for "masculine" man
For anyone playing at home, this is "were" or "wer". The phrase "man and woman" would once have been something like "were and wif", which is where the "were-" in "werewolf" comes from, and is the ancestor of "wife".
If we want English to be more gender-neutral, we could revert to werman, wifman and man.
(and probably more who use examples of it in bad faith arguments presuming that such groups exist in larger numbers, e.g. "look at those crazy feminists!")
> If we want English to be more gender-neutral, we could revert to werman, wifman and man.
There's a part of me that loves this idea, even if I recognize the absurdity of suggesting it. I guess it's made more sense to me than trying to replace a large portion of English vocab en masse, like all the vocational terms ending in "-man".
A curious example of a Germanic cousin of English that underwent the same "masculinization" of the word man but "came back" is Swedish, where the word "man" means "adult male", but is also used as a neuter pronoun meaning "generic person" (usually translated as "one" in English).
As far as I know the other Nordic languages didn't develop this usage, but I'm less familiar with them.
We sort of have this in English too: "That's one small step for a man, one giant leap for mankind". Although I can't think of any cases where we use "man" alone to mean "one".
Time to rewrite the history books! (1984 anyone?)
"_Man_ borde inte tvinga andra att anpassa sig efter en skrikig minoritet" (_One_ should not force others to conform to a loudmouthed minority)
Which surely means it has little relevance to a conversation about modern English then, no?
The target audience for these are squeezed between owners of trailer parks and cheap shacks.
Some great posts are:
https://constructionphysics.substack.com/p/building-componen...
https://constructionphysics.substack.com/p/operation-breakth...
https://constructionphysics.substack.com/p/construction-effi...
https://constructionphysics.substack.com/p/book-review-indus...
https://constructionphysics.substack.com/p/industrialized-bu...
Despite this, he's cautiously excited about some of the potential future industrialized systems such as Foldable Buildings https://constructionphysics.substack.com/p/folding-at-home 3D printing https://constructionphysics.substack.com/p/3d-printed-buildi... Plywood Systems https://constructionphysics.substack.com/p/facit-homes-wikih... And Broad Homes https://constructionphysics.substack.com/p/broad-group-part-...
Although I don't quite understand why they initially excited about B-Core but later call it poorly thought out. Is it because of the cost of stainless steel?
This is a folded system - exactly what you indicate he's cautiously excited about. As am I. Let me link together two or three of those modules - say a living room/kitchen/laundry and two bedroom/bathroom modules. Would be perfect!
Part of it is the cube square law's little brother, the "square linear law?" You have proportionately more wall for the enclosed area. On top of that you still have the expensive bits… bathrooms and kitchens.
Most houses that are classified as tiny are in the 200-400sqft area, so while a "small home" is about twice as large at 500-700sqft, we gotta remember that most houses are 1500sqft anyways, so we are still coming out ahead.
Plus, I think it's much much easier to convince the average joe to live in a 500-700sqft home than in a 200-400sqft home.
How about cost of utilities per square foot over 10 years? My money is on the smaller, vastly better constructed smaller home than traditional build to minimum code mass market crappy tract housing that dominates much of American suburbia.
Who lives in one house for the majority of their life any more? It's pretty rare. In my development it was only a few thousand more to double the insulation and convert to more efficient HVAC - less than half the people building a new house did it. Heck it was $750 to insulate the garage - maybe 1/3 did - you can tell because the people who did got insulated garage doors with windows. A neighbor across the street bought a house where the previous owner didn't insulate the garage. The master bedroom is over the garage. I asked him if his master bedroom got cold in the winter - he got wide eyed and said that as a matter of fact it did. I pointed out the insulation difference - he had a buddy come over and help him pull down the drywall in the garage, they insulated all the walls and added more to the ceiling and re-drywalled and the difference was night and day. Building codes tightened up quite a bit in 2010 so I think they force builders to do that insulation for everything now, but that's just one example of how people care more about granite countertops than paying attention to core infrastructure that could impact a building for it's entire life.
A pithier way to put it - much of your square footage discrepancy is from people sacrificing short term cost for long term costs we all pay for.
And the contractor is only making overhead and profit on half the work of a tiny budget which means that you are not a priority…even if the construction cycle was flat which it isn’t.
The efficiency of the market is why people don’t build this way much. As Heinlein says every generation thinks it invented sex. They think they invented modular housing too I think.
How big were you thinking? Something like 400 SF? Or a proper house?
As I said in another comment on this thread I think it’s possible to build something totally custom for a similar budget (200-250 psf) as long as it’s on a trailer because you avoid most of the code and inspection issues in several western states by putting it on wheels.
https://imgur.com/gallery/KbPlbPR
Still working on the interior but this house is built better than my actual house in a high-cost market in California. It is super tiny though (200 sf and that includes the loft).
edit: formatting
Some of these would cost AU$70-110k though.
The exception appears to be where there is already an approved dwelling on the land, and even then a Caravan can only be used temporarily (eg in your example of temporary AirBNB accommodation).
I know because I've just lost exactly this battle with the local council.
I hadn't considered a trailer because that usually requires a commitment to owning a huge truck. But are these trailers you are referring to more semi-permanent?
Re needing a truck, plenty of folks tow tiny houses so that's no problem assuming you don't want to constantly move it. If you wanted to be truly mobile I personally question whether a tiny house really is the right vehicle (ha!) for that lifestyle. And the trailer we're using has jacks, which stabilize the trailer so, no, it's not semi-permanent, but when you jump around in ours you can't feel it moving at all. We also had a thought about adding a skirt to the trailer itself to increase curb appeal if someone purchasing it is going to leave it fixed in one location, but that's for when/if we sell. Gotta finish the interior first.
https://www.forestriverinc.com/rvs/destination-trailers/sier...
But I guess you need to deliver the thing, and that means truck and crane anyway, unless they're towed to site and the trailer is part of it. Couldn't slide it off a trailer without damaging it. Unless you reinvent the trailer which significantly ramps up your costs.
You could rope a few friends in and put it up with cribbing and a come along but it would take longer.
Plus it can be self assembled
This[0]
Is[1]
A[2]
Solved[3]
Problem[4]
But many municipalities prohibit it because if you make housing too cheap the "wrong kind of people" might move in. In the desert you shouldn't have problems though.
[0] http://www.illmoveit.com/wp-content/uploads/2012/04/IMG_1521...
[1] https://i.ytimg.com/vi/x9MwVxBK254/maxresdefault.jpg
[2] https://ewscripps.brightspotcdn.com/dims4/default/994f83b/21...
[3] https://i.ytimg.com/vi/BhU7yhMVdfE/hqdefault.jpg
[4] http://www.pacificwalkhomes.com/wp-content/uploads/2014/08/a...
It's been shown that the best solution for many (non-mentally-ill) homeless is to literally provide a home. E.g., merely the fact of falling on enough hardships to lose a home and having no fixed address is a major impediment to getting a new job and becoming a homed, taxpaying resident.
Yet I've read repeatedly that California is spending net $1 million per home to create low-standard living spaces for the homeless. This is more than a 10X improvement in these costs.
So I think the reality of these schemes is often...difficult because they are a non-ideal solution to a non-ideal problem (and unf, the alternative in the UK is sheltered housing with huge levels of crime, B&B which cost taxpayers £150-200/day, or council housing that is worth £500k-1m...again, there are no real solutions here).
EDIT: btw, I should add...I have actually lived in a shipping container, I went to a boarding school and part of the school was being re-developed so a small number of proportion of the group had to spend a term in converted containers...no issue. It was totally fine. These kind of housing solutions are used pretty extensively in mining/oil and gas, and they are quite comfortable.
Although they are obviously not spacious mansions, they can be highly functional and comfortable, and obviously WAAAY better than nothing.
If I were in a situation where it was that or nothing, I'd be grateful for a small spot to call home (but then I decided to live for one summer job in a tent in a secluded spot outside of town instead of getting an apartment, and it was very enjoyable and functional).
1: https://www.kgw.com/article/news/local/tiny-home-pods-help-p...
Simply providing someone a home and trying to stuff them in there is only a minuscule part of the overall issue.
Cost savings on the surface but when things come together they're just not there.
A lot of the actual prefabricated style solutions that do save money seem to be small changes within your traditional systems.
I love the idea of modular houses, but they seem so expensive. Especially when factoring in the inability to sell the same as houses, etc etc.
The bay area is insane.
Anyway, the site work for something is not going to be less than $50k. 50k if you're very lucky or are a contractor yourself.
People who otherwise could not afford to buy a house, I assume.
Their advantage seems to be how quickly they can deliver and install them. Digging into their website, it sounds like they're targeting temporary housing for natural disasters, etc. which makes sense.
EDIT: They also state this in their FAQ (https://www.boxabl.com/faq/):
- Transportation = $2-$4 per mile from las vegas
- Assembly = "Boxabl only sells room modules. We will connect you with a Boxabl certified and state licensed installer in your area."
- The rest = "Whats not included in that price is your land and site setup. This can include utility hookups, foundation, landscaping, permits, and more. Depending on your location and the complexity of your site, this cost can range anywhere from $5,000 to $50,000."$5k to $50k is a big range. In the video on the article about Musk's unit[1] they state they're initially targeting Accessory Dwelling Units, and specifically California's recently relaxed laws regarding them. I'm not sure the laws specifically regarding those (but there's info here[2]), but I suspect it's a lot cheaper when you're allowed to hook up to the existing house's sewer and power.
It may well be closer to $100k all said and done for a unit not set up as an ADU, but I suspect that the answer to the original question (of who this targets) is "not the people that need to pay $50k in install fees, at least not initially".
1: https://www.teslarati.com/elon-musk-50k-house-texas-pictures...
2: https://www.hcd.ca.gov/policy-research/accessorydwellingunit...
As for the target audience, i think it is people who want a building within a few days.
As I mentioned, I looked at a number of similar systems myself (we have a number of providers of modular or flat-pack buildings in Europe).
I decided against modular, and had a custom built 6x12m 1.5-story log-build. The pricing was similar - but it took months to complete.
that's $5k revenue per month, or ~$165 per night averaged. Yes, some places could rent for ~$200/night, but I doubt you'll have 100% occupancy rate.
Besides, as an Airbnb rental it would definitely pay for its own mortgage over time.
https://www.centreforpublicimpact.org/case-study/eradicating...
People who fall for stuff like Hyperloop. The biggest problem with housing is not the building itself, its the land and the scarcity of it. This is yet another tech 'solution' in search of a problem. And that problem is political, not technical.
INB4: but we're gonna deploy these on Mars!!
Look at Manhattan or Hong Kong. You just stack the homes and offices and stores on top of each other.
https://blog.epa.gov/2015/07/14/the-manhattan-skyline-why-ar... https://en.wikipedia.org/wiki/Geology_of_Hong_Kong
Chicago typically doesn't have well accessible bedrock. I know of one civil engineer who unexpectedly ran into granite and was able to sell it for added profit on a project. Point being, CE's don't typically expect great bedrock yet have developed methods to build skyscrapers in a city that was formerly a swamp.
"He says even though new technology makes it easier to find solid bedrock beneath 100 feet of wet clay, it doesn’t always make sense to drill that deep. Modern engineers still use the same general principle Burnham & Root employed when they floated the foundations of the Monadnock Building on an even flimsier layer of soil known as desiccated crust: They just spread the load."[1]
[1] https://www.wbez.org/stories/building-skyscrapers-on-chicago...
And the choice it's entirely driven by financial speculation, nothing else.
And the problem they search for has been solved half a century ago — the modern highrise apartment building.
Then on the 6th floor have a pedestrian/cycle floor that's sheltered from the elements, and the 7th floor have open parks, with 30 stories of housing and offices above.