The goal is to improve affordability for those living in Colorado but also to make the state a leader in a sector that has suffered from severe productivity problems for decades, one that mounting labor shortages will worsen over time.
new units it needed to average per year over the next five years to fill the existing shortfall and keep up with population gains. And there are concessionary loans, meaning they have lenient terms, for those looking to build or expand factory space tied to housing construction. And in some cases, those housing grants can be stacked with incentives for bringing new jobs to the state., extended $4.2 million to three companies in return for the construction of 1,000 homes. The firms expect to complete more than 4,000 homes over the next three years.
Although the company’s pre-fabricated homes are competitive with stick-built homes in terms of cost, where the savings really kick in are in assembly times, Hopfenbeck said. “It allows us to be competitive on savings. We can pass some of those savings to customers, who pass those on to their end customers,” he said. Once customers try Simple Homes, and a lower price-point can help, they tend to be “sticky,” he added.
Kit builders, who assemble and ship all the components needed for a home to a construction site, are another innovative approach the state will fund. But they aren’t new. Sears Roebuck offered kit homes in its catalog in 1908 and shipped more than 70,000 before stopping in 1940. “Prefabricated factory-built housing costs about one-third as much as traditional ‘stick-built housing,’ but it constitutes just 10% of new single-family home construction today,” notes Jason Mejia, a visiting fellow with the Foundation for Research on Equal Opportunity,Last month, Golden startup Addazu unveiled its first prototype, a small mining cabin at 130 square feet made of panels put together in a factory.
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