This episode is all about attainable housing, and how innovation may be able to help first-time home buyers with new options.
Jamie Saunders is a Leeds MBA alumna and the founder of Affix Communities, a startup with a mission to create new ways for potential home buyers to become homeowners. Jamie was inspired by her sister's struggles with fluctuating income and rent increases, shifting from architecture to developing innovative, smaller homes in Colorado for people also struggling.
Jamie explains how the concept of prefabrication, creative land use, and designs that allow for short-term rental income can help make housing more affordable. This episode delves into zoning laws, the housing market, and the strategies being implemented to address the affordability crisis. Jamie also outlines what her company's future could look like, aiming to create a replicable system for developers nationwide and foster accessible homeownership.
Leeds Business Insights Podcast is a production of Leeds School of Business and is produced by University FM.
EPISODE QUOTES:
On innovative paths Affix is taking to affordable homeownership
[19:37] One thing that we learned that was kind of mind-boggling while we were doing all of these interviews of potential homebuyers is that it came up again and again that younger folks, they're like, I would love to offset some of the cost of my mortgage by renting out a room, maybe not all the time, maybe just occasionally, maybe just on weekends, whatever works for them. But it did come up quite a bit that that's something that the younger buyer is interested in. So we listened to that, and we designed our pilot home with an area in the back that can be locked off that has its entry bedroom and a private bathroom. So that enables people to make the decision if they want; they can just lock off that area and rent it whenever they want.
How Affix is trying to create affordability in housing
[20:29] There's only two ways to make housing more affordable. The most common way that we see right now is through government subsidy. That's what people usually think of when they hear “affordable housing.” And in that scenario, a house is built, same house, same materials, same, in a lot of cases, almost the same finish quality, even. And then the government will just pay for a portion of the construction costs, which makes the end product cheaper to the consumer. That is not the way that Affix is trying to create affordability. We're trying to create naturally occurring affordability, which means that we are looking for innovative ways to build, more affordable ways to build the actual construction costs, basically. And land costs themselves are actually lower. So, we're not using any kind of government subsidy to accomplish this.
On the impact Jamie hopes to create for Affix in the coming years
[24:32] In five to 10 years, my hope is that we've created a system that can be replicated by developers across the country. And I'm really hoping that we can all work together to bring real starter homes back to America. I think, historically, homeownership has been one of the top ways that Americans have built wealth for themselves and for their families. And that's something that everyone deserves access to. I think there are a lot of developers out there who share my opinion on that. And I think if we all work together, we could really make a big difference in this.
SHOW LINKS:
- Affix Communities | Website
- Jamie Saunders | LinkedIn
- Jamie Saunders | Email Address
- Deming Center for Entrepreneurship | Leeds School of Business
- Michael A. Klump Center for Real Estate | Leeds School of Business
