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    Home builder providing tailored housing solutions

    By Marc Lutz,

    2024-06-21

    Housing, or rather a shortage of housing is a problem in every corner of the country.

    And with potential home buyers hampered by mortgage interest rates floating at about 7%, housing opportunities vary greatly for individual buyers and within each individual housing market.

    Compounding the issue, the national median house price, according to a recent report issued by Realtor.com , topped $442,500 in May, up 0.3% from May of 2023.

    And as population growth and shifts in where people are moving to and from continue to spur the demand for housing nationwide, the result is a huge housing gap with demand outpacing supply as home builders work to keep pace in the arena of new home construction.

    To help alleviate this persistent housing crisis, one home builder, Simplicity by Hayden Homes, is zeroing in on one particular segment of the future housing market: Landowners.

    A subsidiary of Hayden Homes, Simplicity is simply aiming to help turn property owners into homeowners.

    “Housing can be complex, but the solutions don’t have to be,” said Erin Foote Morgan, communications coordinator for Simplicity. “We offer a wide range of plans and project management services that make building housing simple.”

    Simplicity works with an assortment of customers, including property owners, investors and even land trusts.

    President Ryan Jennings said the strategy for his firm is to serve as a fee builder for clients who already own the land on which they intend to build a home.

    “Our core business it to deliver single-family housing to a buyer who owns a lot,” Jennings said. “Someone owns a great piece of land but needs someone to build their house. That’s where we come in.”

    And where they’re now coming in is south central Idaho, specifically in the counties of Twin Falls, Cassia and Minidoka.

    Throughout the Pacific Northwest, Simplicity currently builds in 72 counties across Oregon, Washington and Idaho, providing what Jennings refers to as “uniquely tailored housing solutions.”

    “We’re able to offer single family residential, multi-family housing, accessory dwelling units (ADU), workforce housing and maybe even some higher-end custom homes,” he said. “The difference is our clientele already owns the land.”

    Depending on the buyer, housing options offered by Simplicity for those who own a parcel can range from a 600 square foot ADU, to signature series homes as large as 3,500 square feet.

    The land piece remains the central or critical piece of the project, even if that means in some cases dividing up the lot.

    “We see many buyers in our markets being gifted land from family,” he said. “Some may own a larger piece and can split the land and carve out a piece for other family members. That might be the only way a family member can then build a brand new home.”

    Dwellings can also include duplexes, triplexes and even nine-plex apartments.

    “When it comes to the duplexes and triplexes, a buyer may choose to live on one side of it and rent out the other to help supplement their income and payments,” Jennings said. “When you apply the cost of the land to the build, it creates more efficiencies with the land asset one already has.”

    Targeting communities underserved from a housing standpoint Jennings said is the gameplan for Simplicity.

    “It’s really fit for the individual who wants to build a really good house at an affordable price on their own piece of dirt,” he said.

    And by offering an array of products or home options, Simplicity can deal with a variety of potential clients within such markets.

    “Traditionally what we see are couples, both with jobs, not minimum wage, more higher paying jobs, and they’re looking for long-term housing solution,” Jennings said. “We also have a lot of retirees who are looking for a spot or forever home to live out their retirement years.”

    No matter the client, constructing these tailored dwellings also helps create jobs and economic prosperity within these communities, as well as partnerships among fellow builders.

    In Mountain Home, Simplicity is teaming with the Ginn Group, a developer based out of Vancouver, Washington, that is responsible for the Turner House Depot, a 28-acre planned development slated to accommodate 300 lots when finished.

    Ginn President Phil Wuest said his group engaged Simplicity to help build what he calls “attainable housing” for those connected to Mountain Home Air Force Base, plus prospective buyers coming from the rental market.

    “Our goal with this project is to produce housing that is attainably-priced for working families in that community in Idaho,” Wuest said. “It’s a mixture of first-time buyers and those associated with the military base.”

    An added bonus from the partnership shared by Ginn and Simplicity is that it helps stir up much needed competition within the home building market.

    “Hayden is active in the marketplace, they’re good at what they do and have solid relationships,” he said. “They can deliver the product we want to deliver without us having to go into that market and recreate all of those relationships.”

    And such relationships keep homes more affordable for working families.

    “We try to make it attainable by offering smaller lots, smaller homes,” Wuest said. “There is an affordability element to these homes, but not in the manner as the term affordable is applied as defined by [the U.S. Department of Housing and Urban Development] standards.”

    Building on the Turner House Depot started last year, with 26 homes completed so far. Wuest said it should take about five years before the entire subdivision is completed.

    Similarly, the amount of jobs created by a project such as the Turner development positively impacts local economies.

    “Every house we build is employing probably north of 100 people from lumber supply to roofing contractors touching that home in one way or another,” Jennings said. “We’re not bringing in labor and trades from out of town. These are all local subcontractors we have to partner with. They are our lifeblood. The subcontractor partnership is so critical.”

    And those who choose to build on property they own benefit as well.

    “It’s complicated to build a home on your own lot,” he said. “What we do at Simplicity is remove barriers, help navigate city and jurisdiction requirements, geotechnical and topographical issues. We deal with these things so the homeowner can feel comfortable moving forward with the home build.”

    However, for Jennings, the work is more than just building homes.

    “We look forward to supporting economic development, access to affordable homes, and giving of our time and resources to support the vibrant communities of south central Idaho,” he said.

    Whether homes are being built on pre-owned land or within developments deemed as either affordable or attainable, it’s the lack of home options here in Idaho and nationwide that is driving new construction.

    And developers and builders are working to tailor their efforts to meet the varying needs of families and others who want to achieve the dream of owning a place to call home.

    “Everyone, meaning developers and builders, are trying to figure out how to deliver housing at a lower cost,” Wuest said.

    As the housing market goes, current mortgage rates will continue to have a strong impact on a bevy of first-time homebuyers.

    It’s a “pretty high bar,” Wuest said for those looking to get into their first home, one that initially may be priced in the ballpark of roughly $400,000.

    “Prospective buyers would need two full-time jobs at a pretty substantial pay rate, maybe $24 an hour or higher, and not carrying a lot of debt in order to qualify,” he said. “Such factors play a role in our partnering with a group like Simplicity. We’re trying to deliver homes at a much lower cost so that hard working families can afford them.”

    With ever-changing population shifts in the housing market these days, Wuest said that typically means less land, smaller lots and, of course, smaller homes.

    “This development is part of that trend. Trying to keep these homes attainable to working families and reduce the amount of income going into their housing costs every month,” Wuest said. “Simplicity is on the same page as us in terms of the community, their values and how they treat people.”

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