Dirt to Doorbell in record time!
It sounds too good to be true. And it was until now. Not only possible, but with EcoDream Homes LLC it is a reality. Tilt-up concrete construction was used primarily in commercial construction to allow structures to be built fast, inexpensive, and strong.
On average, it takes seven to 18 months to build a [stick built] house from start to finish, according to a 2019 U.S. Census Bureau report.[i] But you may also need to include time for an architect to draw up plans (1–4 months). Then tack on another month to get your project authorized before shovels can hit the dirt.[ii] Add those all up and you’re looking at a grand total of a year-long commitment.
[i] https://www.census.gov/construction/nrc/pdf/avg_starttocomp.pdf
[ii] https://www.census.gov/construction/nrc/pdf/avg_authtostart.pdf
Market and Economic Challenges
The housing crisis in the US has made it impossible for many to even entertain the hope of home ownership. Criteria for getting bank loans often means that those who currently pay $1,500+ a month for rent, often cannot get approved for a bank loan large enough to purchase even a small house. With changes in society due to Covid-19, economic down turns, wildfires causing lumber shortages and cost skyrocketing have pushed home ownership even further out of reach for so many.
Current homeowners have taken advantage of the low mortgage rates to increase home equity to refinance their homes and reduce their monthly payments. “According to Freddie Mac’s Primary Market Mortgage Survey®, the 30-year fixed-rate mortgage rate averaged 2.9% in the first half of 2021. House prices have risen 19.2% for the first half of 2021 compared to the first half of 2020. In inflation adjusted 2020 dollars, there were about $1.6 trillion in first-lien refinance originations in the first half of 2021. This was a 33% increase in refinance activity compared to the first half of 2020. However, the pace so far this year is still below the pace registered during the refi boom in 2003, when refinance volumes reached $3.9 trillion in inflation adjusted 2020 dollars.”[i] But that does not help lower income or first-time buyers. Freddiemac Consumer Research, Oct. 13, 2021, reports that the last two years have disrupted the wealth building among single women who are heads of the household and has had a greater impact on minorities. Nearly three out of ten women employed before Covid have had either disruption in their work schedules due to the pandemic or left the workforce altogether. Generation X and younger have found difficulty in earning enough to even afford an apartment alone without multiple roommates or have had to move back in with family members to survive. [ii]
Despite the economic and market challenges, the housing market is expected to continue in growth notwithstanding continued high home prices and rising mortgage rates. Residential home construction will continue to be in demand and if the homes are extraordinarily affordable, energy-efficient, built quickly and built solid to withstand climate challenges, the business proposed here is a solid investment.
New home construction has shifted upward of $500 per square foot for a home with nicer accommodations like a walk-in closet or energy-efficient features. Buying an older, smaller home will still be around $270 to $370 per square foot. The demand for homes has added additional challenges to buyers. If you qualify for a loan, if you can save up for the down payment and if you find a home in your price range, then you have to compete with other buyers who have more cash.
[i] Refinance Trends in the First Half of 2001 – Research Note, 2021 October 29. Available at: http://www.freddiemac.com/research/insight/20211029_refinance_trends.page?
[ii] http://www.freddiemac.com/research/consumer-research/20211013_survey_single_women.page?
The pandemic as well as environmental crisis have changed the global economy and the fluxuations between supposed recovery and continued shutdowns have created a roller coaster of uncertainty. “In the United States, nonresidential construction remains 20% below the prepandemic level, while consumer purchases of durable goods soared to almost 30% above the prepandemic level before starting to decline in the second half of this year. Faced with such large swings in demand, it’s not surprising that businesses have had trouble calibrating their operations and, in many cases, finding key supplies. The broad shift from services to goods has been particularly difficult, since it’s often much harder to ramp up goods production quickly than it is to ramp up production in services industries “ [i]
“Economic Forecast Summary (December 2021) - Real GDP is anticipated to grow by 5.6% in 2021, before rising by 3.7% and 2.4% in 2022 and 2023 respectively. Supply disruptions will gradually ease, facilitating a rebuild of business inventories and stronger consumption growth in the near-term.” [ii]
[i] United States Economic Forecast – 4th Quarter 2021 Bachman, D. Deloitte Insights at:
https://www2.deloitte.com/us/en/insights/economy/us-economic-forecast/united-states-outlook-analysis.html
[ii] OECD.org – United States Economic Snapshot: available at: https://www.oecd.org/economy/united-states-economic-snapshot/#:~:text=Economic%20Forecast%20Summary%20(December%202021,growth%20in%20the%20near%2Dterm.
Climate Crisis
Wildfires, flooding, and severe storms have all taken their toll on the economy and the communities that have been directly affected. September 2020 Gates Oregon was part of the Beachie Creek wildfire that spread quickly with 50-75 mph winds, and it burned through the town. Extreme weather, high winds, low humidity, and long drought created a disaster for the entire town. The result was a $13.5 billion dollar settlement between Pacific Gas & Electric and residents of Gates, and a $190 million bill that Oregon Legislature had to pass aimed at preventing wildfires and regulations concerning utility company developing wildfire mitigation plans. If the homes in Gates had been designed and built better those costs could have been mitigated. Traditional stick-built homes will continue to be a higher risk than concrete homes.
Our concrete homes are built on site! This is to decrease costs to our customers, reduce time of construction and reduce our carbon footprint! Eco-friendly and economical!
Construction Value
In 2017 Dr. Pieter VanderWerf and Nicholas Haidari of Boston college conducted a study of insurance costs for both traditional wood home construction and concrete construction. “The study, commissioned by the National Ready Mixed Concrete Association (NRMCA) and conducted by Boston College’s Dr. Pieter VanderWerf and Nicholas Haidari, obtained builder’s risk and commercial property insurance premium quotes for two hypothetical buildings – one with a wood frame, and the other made of concrete. The study drew quotes for locations such as Edgewater, NJ, Towson, MD, Orlando, FL, Dallas, TX, and Los Angeles, CA.”[i] The study found that builder’s risk insurance quotes for concrete buildings were about 22-27% less than traditional wood frame, stick built, homes. Concrete buildings cost less to insure because they’re not going to combust and are less prone to other problems such as dry rot, pests like termites, warping, damage due to flooding, and other various forms of dilapidation over the lifespan of the structure. While a concrete home will sustain some damage in a flood or wildfire, the structure will not be destroyed, and repair costs will be significantly less than a stick-built home. The market’s demand for commercial buildings to go up faster, stronger, and cheaper have created a demand for construction companies to further develop the method of construction called Tilt-Up construction.
Tilt-up construction was developed in the 1920’s by a California architect, Irving Gill as an affordable way to carry on construction during a struggling economy. It was developed as an efficient technique of raising a concrete structure without needing to go through a vertical forming procedure. As the global economy dropped to an all-time low during WWI and WWII, tilt-up construction rose in popularity because of its speed, convenience, and affordability. However, these advances have not carried over to the residential market primarily due to the limitations in aesthetics. While Asia and the eastern block countries have utilized concrete in residential construction, they have not had the aesthetic quality to make them popular in the US. However, Middle Eastern and Mediterranean residential construction has developed in concrete prefabricated homes which are brilliantly more aesthetically pleasing.
Why should commercial building be so much faster and economical than residential. We don't think it should. EcoDream Homes is taking the value of tilt-up and combining it with the aesthetics of the Mediterranean and building fast, economical, beautiful Mediterranean style homes right here in the Pacific North West!
[i] Insurance Business America, ‘Underwriters aware of the risks of wood-frame construction: Survey’. Adriano, L. Oct. 19, 2017 Available at: https://www.insurancebusinessmag.com/us/news/construction/underwriters-aware-of-the-risks-of-woodframe-construction-survey-82387.aspx