Author Topic: The $20K house  (Read 991 times)

Poundwise

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The $20K house
« on: December 10, 2018, 05:00:41 PM »
Don't know if this has been profiled here before, but this sounds really awesome:

"After designing an incredibly cheap home, the 20K Initiative is now working with Fannie Mae and others to redesign mortgages and the other factors that make home ownership so expensive. "
http://www.ruralstudio.org/initiatives/20k-house
https://www.fastcompany.com/90204757/they-built-a-20k-house-now-they-want-to-fix-the-housing-system

soccerluvof4

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Re: The $20K house
« Reply #1 on: December 12, 2018, 03:16:26 AM »
There are definitely areas that need low or more affordable costs of living. The one thing the article didn't touch on or I missed it was running power etc... to the homes as well as the cost of the land. Also If the land isn't near anything then is the housing affordable if you cant get anywhere.

ATMD

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Re: The $20K house
« Reply #2 on: December 12, 2018, 06:54:08 AM »
The information that we got from the article is that Fannie Mae tries to use a holistic approach to supply low cost housing by connecting different stakeholders involved; the lenders, the buyers, the contractors etc

It seems like the current housing situation is completely disconnected, a holistic approach to align objectives and incentives seems like a great idea to me.

zolotiyeruki

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Re: The $20K house
« Reply #3 on: December 16, 2018, 06:45:42 AM »
Even if you ignore the cost of the land, at least in our town, just the building permits and utility hookups will exceed $20k.

If you're looking for inexpensive housing, I think multi unit buildings are going to be a lot more efficient than any standalone house.

Poundwise

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Re: The $20K house
« Reply #4 on: December 17, 2018, 08:33:51 PM »
Even if you ignore the cost of the land, at least in our town, just the building permits and utility hookups will exceed $20k.

If you're looking for inexpensive housing, I think multi unit buildings are going to be a lot more efficient than any standalone house.

Absolutely. But their goal was to design an affordable single-family home, and though it sounds like the $20K price cap for materials was too difficult to hold for long, still a worthy quest! 

And they have some interesting ideas.
Quote
If the house is efficient enough to save someone $25 a month on energy bills, for example, and the bank offering a home loan knew that, it could bring a house within reach of someone living in poverty. “In a conventional mortgage product, for every dollar you can increase your monthly mortgage payment, you can buy about $200 of additional construction that you otherwise couldn’t afford,” says Smith. “So suddenly that $25 that doesn’t seem like much just became $5,000 of added construction cost that you can finance at no additional cost to you . . . The problem is, is that the primary lender has no way to know that.” By connecting various organizations involved in housing, these types of savings can emerge.


I think this sounds like it could be a good thing, by baking in the long-term advantages of an energy efficient house into an up-front advantage.