S.E.E.

D - Sustainable, Ethical, Equitable Development

Phase One Marketing Strategy and Research

Michigan New Housing Construction Market

The Home Builders Association of Michigan produced a report in 2017 titled ​Housing
Challenges Threaten Our Economic Growth ​stating that Michigan should build
25,000-30,000 new homes per year to keep up with demographic shifts, aging housing
stocks and economic growth. The U.S. Census Annual Building Permit Survey reported
16,652 single family permits in 2017 in Michigan.

Detroit’s Affordable Housing Crisis in 5 Bullet Points

● According to U.S. Census data, there are 673,104 people in Detroit and the
median household income is $30,344. There are 264,360 households with 2.5
people per household. 34.5% of Detroiters live below the poverty line. 53% of all
housing units in Detroit are said to be “renter occupied”.

● In August 2018 the Detroit Journalism Cooperative published an article on the

Bridge (www.bridgemi.com) saying that Detroit’s Land Bank Authority owns
around 95,000 properties, 30,000 of those properties are vacant homes and only
3% of those homes are currently listed for sale.

● Data Driven Detroit (www.datadrivendetroit.org) reported in July of 2018 that

95% of the homes in Detroit were built by 1956. The typical home in Detroit is
constructed of brick (about 56% of all homes) and 1-1.5 story with a 1.5 car
garage.

● Crain’s Detroit reported in March of 2017 that 710 out of 3,800 homes (19%)
were sold with a traditional home loan in 2016. Homes bought with a traditional
home loan sold for an average of $155,000 and homes bought with cash sold on
average for $30,000. The Urban Institute (www.urban.org) reported in October of
2016, the average credit score of a Detroit resident was 585 and 66% of Detroit
residents had “subprime credit or no credit”, 19% “healthy credit” and 68%
“delinquent credit”.
 ● Zumper (​www.zumper.com​) estimated median neighborhood rents for the
Summer of 2018 to be $610 for a one bedroom and $680 for a two bedroom
apartment. The most expensive area being Downtown Detroit at $1,025 and the
least being Greenfield and Rosa Parks neighborhoods at $410.

Detroit Tiny Home Industry Leader

Cass Community Social Services - https://casscommunity.org/tinyhomes

This development is a rent to own model and homes are $300 a month + $32 for heat in
the winter. People will be given an opportunity to own their home after 7 years. The
homes are 250-400 sq. ft. and each home is said to cost around $48,000 to build. This
social service agency plans on building 25 homes. To read a newspaper article about
this development, visit the link below:

https://detroit.curbed.com/2016/9/9/12860756/tiny-house-detroit-neighborhood-low-inco
me

S.E.E.D. Housing Options/Pricing Strategy

250 Sq. Ft. Home = $25,000

300 Sq. Ft. Home = $35,000
500 Sq. Ft. Home = $50,000

A basic and livable 250 sq. ft. tiny home is an energy saving concept when built with
energy saving appliances, low flush toilets, energy efficient faucets/shower heads and
up-to-date insulation materials. Our 300-500 sq. ft.. S.E.E.D. homes would have
additional green features like solar panels, micro wind power, LED lighting, biodigestor,
composting toilet, rocket stove, mini greenhouse, water catchment system and climate
battery.

The proposed housing options could be offered to any household that meets the
following requirements:

1) To be eligible to buy/rent a $25,000 tiny home, a household should not make

more than $25,000 in income and no less than $10,000.
 2) To be eligible to buy/rent a $35,000 tiny home, a household should not make
more than $35,000 in income and no less than $10,000.

3) To be eligible to buy/rent a $50,000 tiny home, a household should not make

more than $50,000 in income and no less than $15,000.

Based on U.S. Census data, 136,327 households fit the criteria for the 3 housing
options, almost 52% of the total 264,360 households in Detroit. Here is a breakdown of
income brackets and amount of households for each one:

Income Brackets Households Percentage of Target Market

Less than $10,000 52,976 20%

$10,000 to $14,999 21,795 8.2%
$15,000 to $19,999 21,080 8%
$20,000 to $24,999 18,592 7%
$25,000 to $29,999 16,114 6.1%
$30,000 to $34,999 17,930 6.8%
$35,000 to $39,999 15,742 6%
$40,000 to $44,999 12,844 4.9%
$45,000 to $49,999 12,230 4.6%

Potential Customer Marketing Nodes

We could market the 3 housing options to the following segments: Retirees, College
Students, Single Young Professionals, Service Workers, Factory Workers, Urban
Farmers, Artists/Designers, Single Mothers and Young Couples.

Marketing Partners Equation

FHA Loans + Credit Unions + Foundations/Grants + Local Government Agencies +

Community Organizations + Peer to Peer Lending + Crowdfunding + Land Trusts +
Colleges + Urban Farms = Affordable Housing