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105
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78
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JS Burnett
  • Real Estate Consultant
  • Houston TX
78
Votes |
105
Posts

I want to talk about what "affordable" actually means in new construction

JS Burnett
  • Real Estate Consultant
  • Houston TX
Posted

because most of what gets built and marketed as affordable is just cheap. And cheap costs more in year five than quality costs on day one.

I've been a GC and developer in Houston for thirty years. I've built houses, retail centers, office parks. I know what things cost to build, what they should cost, and what it costs when the spec gets value-engineered into the floor.

What I'm focused on right now is a two-part model.

Small-footprint homes for first-time buyers. 800–1,100 square feet, built with real materials, not the cheapest thing that passes inspection. The math on these works because the footprint is disciplined, not because the quality is sacrificed. A buyer in this house has a lower payment, lower utility bills, lower maintenance costs, and a genuine shot at building equity instead of treading water.

And 2-to-4-unit income properties for investors who want to start producing income without taking on a 20-unit complex as their first deal. Live in one unit, rent the others, let the property carry itself. Built to last. Built to the same quality standard as the single-family product.

What makes both work is the same thing: reducing the footprint instead of reducing the quality. Every square foot you don't build is a square foot you don't have to heat, cool, maintain, or eventually replace. That's not deprivation. That's efficient construction applied to a real financial model.

This scales. Slowly, sensibly, one to twenty well-built deals at a time.

Happy to talk through the numbers on either side of this if anyone's evaluating something similar.

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