The topic of housing affordability and achiveability has remained a hot topic of conversation as of late. Despite a record number of housing starts in Halifax, completions remain flat, and time to completion has increased. Developers are building flat out, and even with a slowing in population growth, not enough units are getting finished to drive down prices, though they have stabilized.

The discourse focuses on luxury units suggesting that new units being constructed are unaffordable. Luxury is mostly a marketing term, likely used to justify higher rents, but it does beg the question, what would non luxury affordable housing that first time buyers could acquire look like?

Halifax’s Hydrostone neighborhood is an example of rapidly erected, well designed suitable housing. The neighborhood was established to be permanent suitable housing for survivors of the Halifax Explosion. Its construction made use of readily available local materials, Including the Hydrostone block, that the areas name is derived from.

Since the Second world war, average house sizes have more then doubled, but today fewer couples are having children. Do first time home buyers need 2000sqft+? what if we can achieve housing economy through design.

Back in 1990, Avi Freedman, a professor of architecture at McGill university developed the Grow Home. The Grow Home was designed to be sold for $70,000 making it affordable for a family with a income of $50,000.

The grow home is a 1000sq ft, 2 story house, designed to be built as a town home configuration with 4-8 units. It was Immediately noticed, and featured on the front page of the New York Times Homes section. A Montreal home builder, Leo Marcotte, looked at the units, which had a construction cost of $40,000 and took a leap. he sold 24 in weekend, and all 87 units were spoken for within 2 weeks. Marcotte knew his buyer, and built his units with basements, instead of on a slab. he offered some upgraded options and a brick facade, so his units were not bare bones, but still affordable.

Between 1990 and 2000, over ten thousand grow homes have been built in Canada, selling at prices between $69,000 and $95,000. 9 out of 10 buyers were first time home buyers.

The home is built to be 14′ wide, which is the maximum span of a 2×10″ floor joist on 16″ center. This also made the design flexible, as there were no interior load bearing walls. Builders offered full height unfinished basements, and several offered brick facades – options which added cost, but resulted in more flexibility.

Most municipalities didn’t allow land to be subdivided into 14′ lots. this resulted in units being sold as condos, which also reduced construction costs, as condos had a reduced fire separation between units. this also permitted cost savings from utility hookups, since the entire structure could receive one, rather then duplicating for each unit.

The Grow Homes small size,open plans, limited openings, and townhouse style also resulted in the homes being very energy efficient. they were originally heated with electric baseboards.

The Grow Home Today

Using the Bank of Canada’s CPI inflation Calculator, A grow home today could be built for ~$90,000 and Sell for $149,000-205,000. That makes a new build at less then half the median sale price in Halifax, of $545,000 and almost a third of the Average sale price of $592,000 (NSAR numbers)

The Grow Home 30 Years Later.

Thanks to research, I was able to track down the original Grow Homes built be Leo Marcotte. One of those first 87 units is listed today for $475,000. The home has seen updating over its 30 year life, and now commands a premium over comparable in the neighborhood. a third bedroom has been added in the basement, and various finishes have been upgraded.

while some might bemoan an affordable house, that now isn’t, the project appears to have achieved its goal – Provide an affordable entry point to home ownership, and allow flexibility to update, and change as the owners life changes. The owners were able to enter the market, and build equity over time. There are 1000sqft houses on the market in Halifax that command higher prices, and are in worse condition.

The Grow Home certainly looks to still be a viable housing option. with HAF changes allowing 4. units as of right, a 4 pack can be affordably constructed on many existing lots in hrm, adding gentle density, and providing an on ramp to home ownership for first time buyers.