In our work, understanding why we build a home in a certain way is key in addressing the fundamental challenges of affordability. And while it is certainly important to ask, “what does a house cost to build?” it is perhaps more useful to consider what a house actually affords.
In other words, what impact might we have on the creation of more attainable housing if we could begin to consider the total cost of homeownership in the overall financial equation? Stated more directly, we have found that many low-wealth homeowners are not primarily challenged because they cannot afford their monthly mortgage payments. Instead, they are more often at risk of missing a payment and perhaps even losing their home because of one or more of the four following circumstances.
First, a homeowner may have an unexpected energy bill. In our part of the world, our homeowners may have an energy bill of $35–45 a month in March and April, and an energy bill of $350–400 in July and August.
Second, a homeowner may have an unexpected maintenance or repair bill. We live in an area of highly volatile climatic activity. Maintenance and repair due to storm-related events and the long-term displacement they often cause play a significant role in the financial security of our homeowners.
Third, a homeowner might have an unexpected healthcare event in their lives. Where you live matters, and living in substandard housing is one of the best-understood negative social determinants of health.
Fourth, a homeowner may face various forms of income disruption. Many rural homeowners rely predominantly on part-time work, shift work, and seasonal work to make ends meet. Additionally, they live in complex kinship networks in which everything is shared, from housing, transportation, and income to food, eldercare, and childcare. Any disruption in these community networks can be disastrous for generations of a family.
So, in addition to managing the upfront cost of construction of the home, it is even more important and impactful to understand how the actual performance of the home in four key areas—energy efficiency, durability and resilience, health and wellbeing, and the strengthening of community networks—all contribute in profound ways to financial and economic security.
Working with our builder partners and homeowners, the Front Porch Initiative provides the information, knowledge, and know-how around each of these instrumental areas to help them make informed decisions regarding both the quantitative and qualitative aspects of building performance, allowing for a clear decision tree that considers the cost and value of action, as well as the hidden cost of inaction.
Below, you see five variations of Joanne’s Home built in Alabama, Georgia, and Tennessee.
One of the important aspects of this iterative research is our ability to build multiple versions of each home in various climatic conditions and with different performance objectives as necessitated by our housing partner’s particular circumstance. Taken together, these homes become “Test and Learn Laboratories,” and this iterative process of evaluating both the cost and value of building performance criteria lends itself to a highly customizable process and yields a wide variety of housing options and variations.
Each house we build offers the opportunity to study different issues of efficiency, resilience, wellness, and community building. One of our research questions focuses on finding the balance point between the front-end construction costs of improved performance and the back-end performance consequences in each of these areas. In our next post, we will share a case study of two versions of the product line homes (seen below), and how we use our homes to explore the pluses and minuses of different building standards in their delivery— specifically, we will take a deep dive into the intersection of energy efficiency and resilience, and we will share some of the surprising things we have learned along the way.
Joanne’s Home: Timothy Hursley
AIR Serenbe: J. Ashley Photography
Ree’s Home: Timothy Hursley
AHR Wharf Avenue: Ford Photographs, provided by AHR
Ophelia’s Home: AU Rural Studio
House 66 & House 68, Auburn Opelika Habitat for Humanity: Matt Hall