What Makes a Home Affordable?

Over the past two weeks, we've shared some of the ideas K-10 Development Group is exploring to help make housing more affordable in Beacon Landing. We’ve looked at construction methods, energy efficiency and the long-term cost of living in a home.

As we’ve continued talking with people who actually build homes, another important part of the affordability equation has become clearer: builders need build-ready lots, and they need enough of them to build efficiently.

A Local Builder’s Perspective

Local builder Trent Santee has spent years thinking about affordable housing from both the policy and building sides. He has served on Lawrence’s Affordable Housing Advisory Board and the local Home Builders Association board, and currently serves on the Kansas state Home Builders Association board. Creating more opportunities for people to own homes is something he cares about personally.

When we asked Trent what would help local builders produce more moderately priced homes, his answer was surprisingly simple: more build-ready lots and enough of them to build at scale.

“We don’t need to reinvent building little houses. We just need the opportunity to.”

Trent believes smaller, relatively flat lots could support simple starter and retirement homes. He also sees volume as an important part of lowering costs. Building many homes creates efficiencies that aren’t available when building one at a time, and a steady pipeline of work makes Lawrence more attractive to subcontractors who are currently traveling elsewhere to find it.

What I appreciated most was Trent’s enthusiasm. His message was clear: Lawrence has talented local builders who want to build more homes at prices more people can reach. They need the opportunity to do it.

Getting Lots Ready to Build

Just as important as supply, lots need to be build-ready and competitively priced. That means streets and utilities need to reach them without adding unnecessary costs.

The proposed STAR Bonds project can help. State and Douglas County incremental sales tax generated within the district would repay more than 80% of the proposed $37.7 million in STAR Bonds funds K-10 Development Group proposes to provide the City for public infrastructure projects within Beacon Landing.

That public investment would also allow us to use more of our private development dollars to bring utilities from the public lines directly to individual lots. Our intention is to pass those savings along to home buyers and renters through the cost of the lots.

And that’s where the scale of Beacon Landing could make a real difference. With approximately 1,200 single-family homes planned, we have an opportunity to greatly expand Lawrence's supply of competitively priced, build-ready lots and give builders the volume they need to build more efficiently.

Affordability Doesn’t Stop at the Front Door

Last week, we talked about energy costs as another part of housing affordability. This week, we're looking at another household expense that also affects quality of life: transportation.

Housing and transportation are closely connected. Where you live affects how often you need a car, how far you drive, and how much you spend on fuel and vehicle maintenance.

That's part of how we’re planning Beacon Landing. Housing, retailers, services, recreation, parks and trails are being designed together. Our goal is to give residents more opportunities to reach everyday destinations by bike or other options without needing to use a car for every trip.

We also want Beacon Landing connected to the rest of Lawrence. Our plans include designated rideshare and public transportation pickup areas within the retail district, making it easier to reach employers, businesses and destinations throughout the community.

What We’ve Learned

If there’s one thing this series has reinforced for me, it’s that there isn’t one answer to affordable housing.

• It’s how we build.

• It’s what it costs to operate the home.

• It’s whether builders have build-ready lots.

• It’s whether there’s enough volume to build efficiently.

• And it’s what it costs people to live everyday life.

We’re going to keep learning from policy-makers, builders, engineers, and the community as Beacon Landing moves forward. And as we make decisions and begin building, we’ll keep sharing what we learn along the way.