Houston-grown partnership completes innovative pilot program promoting affordable housing

innovating an impact

A Houston pilot program created a way to design stylish homes at a fraction of the cost — and in less than half the time. Photo courtesy of BoxPrefab

For families who want to live near downtown, Houston's affordable housing deficit in and around the Inner Loop is no secret.

For thirty years and counting, Houston-based nonprofit Avenue has confronted this reality by creating affordable housing opportunities and comprehensive community development programs for families in Houston neighborhoods.

"One of our chief objectives is to help stabilize neighborhoods and give opportunities for people to stay in the neighborhoods by providing moderately-priced homes," says Robert Fiederlein, Avenue's senior director of real estate development.

After an audit of Houston's Northline neighborhood revealed the community's affordable housing shortage, the Avenue team began to explore various methods to deliver new construction to the community, through sustainable housing at affordable prices. Research of diverse construction methods led Avenue to the innovative solution of prefabricated family dwellings.

In their effort to find a smart, sustainable alternative to traditional construction, Avenue came across BoxPrefab, an innovative off-site construction company that produces precision-built prefabricated homes from design to completion.

BoxPrefab's sustainable-oriented attributes and efficient processes checked all of Avenue's 'must-have' boxes and the two entities kicked off their partnership with their premier pilot program for modular home development.

"We care a lot about bringing affordability to housing and bringing good designs to affordable housing. We were really excited to work with Avenue because we are really in tune with their mission," says Rame Hruska, BoxPrefab's co-founder. "This is a great solution for homeowners."

This housing solution is not your run-of-the-mill "affordable housing." Besides its sleek finishes and modern look, BoxPrefab's modular home design and construction process is practical and ultra-simplified. Using prefabricated components, the company specializes in building homes in a factory, a controlled environment, instead of building on-site, where the construction process is subject to external variables, like rain, inclement weather, or any labor diversions.

The BoxPrefab houses are created offsite and then set up on the property. Photo courtesy of BoxPrefab

"Reliability is a big factor for our clients. There's so many unknowns and variables, from weather to other various delays, so we can really give people a much more definitive price, time and set quality," says Hruska.

After producing the factory-built components, BoxPrefab then assembles the prefabricated modules on the home's lot. With this streamlined process, BoxPrefab is able to build homes faster and in a more systematic manner, all while reducing waste output and overall cost.

"We have confidence that if we placed higher orders, costs would go down," Fiederlein says. "This could be a way to build less costly affordable housing. Construction costs came out $130 per square foot, which is comparable to the other site-built homes that we're working on right now.

"Another thing we've learned was that we can do it in half the time as a site build," Fiederlein continues. "It takes six to seven months to build a site-built home and we completed this home in just over three months. Russell, with tighter scheduling, said he could've built quicker. We can half the time it would normally take. As you know, time is money."

BoxPrefab's construction process, fiscal efficiency and waste output reduction is exactly what Avenue was looking for in a partner. Together, the two entities successfully completed their pilot program by placing a three-bedroom-two-bathroom prefabricated home on the market in Houston's Northline neighborhood.

"We're really excited about this potential and see it as becoming a much more standard way to build," Hruska says.

Prefabricated building options are considered the future of construction, due to its increased reliability and quality in the construction process, Hruska says. Based on the success of their pilot program, Avenue anticipates investing in more modular housing in the future. BoxPrefab, while Houston-based and focused, has their sights set on expanding regionally, to service more clients with prefabricated solutions, says Russell Hruska, BoxPrefab co-founder.

"Modular is a viable path going forward," Fiederlein says. "It's going to take additional work to get there, but the pilot shows that it's certainly a method that helps to reduce costs…We're confident that it can be the way of delivering affordable housing at lower prices."

Houston will end this decade with 114,100 new apartments having been built in the last 10 years. Photo courtesy of Dolce Midtown Apartments

Houston area sees more new apartments than almost any other city

built up

You might call this the Decade of the Renter in Houston. New data shows H-Town ranks third in the U.S. for most new apartments from 2010 through 2019.

In a housing review of the 2010s published December 16, apartment website RentCafé estimates Houston will end this decade with 114,100 new apartments having been built during the 10-year span.

Houston is eclipsed by only two markets: DFW, with an estimated 149,000 new apartments, and New York City, with an estimated 125,100 new apartments added during this decade. In the rankings, Houston is followed by Washington, D.C. (113,300) and Los Angeles (98,000).

Two other Texas metros made the top 20:

  • Austin, claiming the No. 8 spot with 75,400 new apartments.
  • San Antonio, grabbing the No. 13 spot with 47,700 new apartments.

All told, the four major metro areas in Texas have added 386,200 new apartments from 2010 through 2019, RentCafé data shows. At the same time, their populations have exploded.

From April 2010 to July 2018, the DFW metro area's population soared by more than 1.1 million, according to the U.S. Census Bureau. Houston nipped on DFW's heels from 2010 to 2018, adding almost 1.08 million residents, the Census Bureau says.

During the same period, comparatively rapid growth occurred in the Austin metro area (nearly 452,000 new residents) and San Antonio metro area (more than 375,000 new residents).

As Texas' major metro areas keep experiencing a population surge, the rise of the apartment renter promises to continue.

Data from Richardson-based property management software RealPage shows construction of 22,879 new apartments had been approved from October 2018 to October 2019 in the Houston area. That's a year-over-year jump of 77.8 percent.

The numbers for DFW (19,562 permits, up 7.3 percent) and Austin (13,981, up 15 percent) were lower, but they still ranked among RealPage's top 10 metro markets for the number of apartment construction permits issued.

Within U.S. metro areas, the cities of Houston, Austin, and San Antonio ranked among the top 10 places for apartment construction permits issued from October 2018 to October 2019, according to RealPage.

------

This article originally ran on CultureMap.

Ad Placement 300x100
Ad Placement 300x600

CultureMap Emails are Awesome

Property Showcase

Rice Alliance names Houston healthtech exec as first head of platform

new hire

The Rice Alliance for Technology and Entrepreneurship has named its first head of platform.

Houston entrepreneur Laura Neder stepped into the newly created role last month, according to an email from Rice Alliance. Neder will focus on building and growing Houston’s Venture Advantage Platform.

The emerging platform, which is being promoted by Rice Alliance and the Ion, aims to connect founders with the "people, capital and expertise they need to scale."

"I’ve spent a lot of time thinking about what it takes to make an innovation ecosystem more navigable, more connected, and more useful for founders," Neder said in a LinkedIn post. "I’m grateful for the opportunity to do that work at Rice Alliance, alongside a team with a long history of supporting entrepreneurship and innovation."

"Houston has the talent, institutions, and industry base to create real advantage for founders," she added. "I’m looking forward to listening, learning, and building stronger pathways across the ecosystem."

Neder most recently served as CEO of Houston-based Careset, where she helped bring the Medicare data startup to commercialization. Prior to that, Neder served as COO of Houston-based telemedicine startup 2nd.MD, which was acquired for $460 million by Accolade in 2021.

"Laura brings a rare combination of founder empathy, operational experience and ecosystem leadership," Rice Alliance shared.

Neder and Rice Alliance also shared that the organization is hiring developers to design the new Venture Advantage Platform. Learn more here.

Elon Musk's SpaceX files initial paperwork to sell shares to the public

Incoming IPO

Elon Musk's space exploration company has filed preliminary paperwork to sell shares to the public, according to two sources familiar with the filing, a blockbuster offering that would likely rank as the biggest ever and could make its founder the world's first trillionaire.

A SpaceX IPO promises to be one of the biggest Wall Street events of the year, with several investment banks lining up to help raise tens of billions to fund Musk's ambitions to set up a base on the moon, put datacenters the size of several football fields in orbit and possibly one day send a man to Mars.

The sources spoke on condition of anonymity because they were not authorized to talk publicly about the confidential registration with the Securities and Exchange Commission.

SpaceX did not respond immediately to a request for comment.

Exactly how much SpaceX plans to raise has not been disclosed but the figure is reportedly as much as $75 billion. At that level, the offering would easily eclipse the $29 billion that Saudi Aramco raised in its IPO in 2019.

The offering, coming possibly in June, could value all the shares of SpaceX at $1.5 trillion, nearly double what the company was valued in December when some minority owners sold their stakes, according to research firm Pitchbook, before an acquisition that increased its size.

Musk owns 42% of the SpaceX now, according to Pitchbook, though that figure will change with the IPO when new owners are issued shares. In any case, he is likely to pierce the trillion dollar mark because he is already close. Forbes magazine estimates Musk's net worth at roughly $823 billion.

In addition to making reusable rockets to hurl astronauts and hardware into orbit, SpaceX owns Starlink, the world’s largest satellite communications company. The company also recently brought under its roof two other Musk businesses, social media platform X, formerly Twitter, and artificial intelligence business, xAI, in a controversial transaction because both the seller and the buyer were controlled by him.

SpaceX has become the biggest commercial launch company in its industry, responsible for sending payloads into orbit for customers across the globe, but has also benefited from big taxpayer spending. That has raised conflicts of interest issues given that Musk was the biggest donor to President Donald Trump's campaign and is still a big backer.

In the past five years, SpaceX won $6 billion in contracts from NASA, the Defense Department and other U.S. government agencies, according to USAspending.gov.

Among current SpaceX owners is Donald Trump Jr, the president's oldest son. He owns a shares through 1789 Capital. That venture capital firm made him a partner shortly after his father won the presidency for a second time and has been buying up federal contractors seeking to win taxpayer money ever since.

The White House and Trump himself have repeatedly denied there are any conflicts of interest between his role as president and his family's businesses.

8+ can't-miss Houston business and innovation events in April

where to be

Editor’s note: Houston's weeklong innovation festival kicks off April, followed by Rice University's globally recognized pitch competition returning for its 26th year. Plus, find coworking pop-ups, industry meetups, pitch battles and even a crawfish boil on the calendar. Here’s what not to miss and how to register. Please note: this article might be updated to add more events.

March 30-April 4 — H-Town Roundup

Celebrate innovation, entrepreneurship and collaboration at Houston Exponential's sixth-annual H-Town Roundup. During the free event series, previously known as Houston Tech Rodeo, attendees can expect insightful talks, workshops and networking events at venues across the city.

This event began March 30. Register here.

April 2 — Industrious Coworking Day

Enjoy a complimentary day of cowering at Industrious and network with professionals at the Ion. Breakfast, snacks, wifi and workspace tours are included. Following the cowering day, Industrious will host happy hour at Second Draught from 4-6 p.m.

This event is Thursday, April 2, from 8:30 a.m.-5 p.m. at the Ion. Register here.

April 2 — Technology Summit for Women

The fourth annual Women in Tech Cummil will feature speakers across three core tracks: Transformation + Digital strategy, Cyber + Risk + Resilience, and AI in Practice. Pearl Chu, director of technical domains and university relations at SLB, will give the opening remarks. Other panelists come from CenterPoint Energy, BP, Technip Energies and other leading companies.

This event is Thursday, April 2, from 2-5 p.m. at the Ion. Register here.

April 8 — Veterans Business Battle

Hear pitches from veterans and entrepreneurs as they compete for more than $10 million in investments at Rice Businesses' 12th annual Veterans Business Battle. This year, the two-day event will also feature a Small Business Expo, which invites Houston-based, veteran-owned businesses to participate in education, networking and the opportunity to showcase their business. Moonshots Capital and Mercury Fund will also host a fireside chat.

This event begins Wednesday, April 8, at 11 a.m. at the Ion. Click here to register.

April 9-11 — Rice Business Plan Competition

The Rice Alliance for Technology and Entrepreneurship will host the 26th annual Rice Business Plan Competition this month. Forty-two student-led teams from around the world, including one team from Rice, will present their plans before more than 300 angel, venture capital, and corporate investors to compete for more than $1 million in prizes.

This event begins Thursday, April 9. Find more information here.

April 10 — BioHouston Chili Cookoff

Connect with Houston's life sciences community at BioHouston's 21st annual chili cookout. This event is geared toward startup founders, researchers and industry veterans alike.

This event is Friday, April 10, from noon-4 p.m. at Bayou City Event Center. Register here.

April 14 — Mercury Fund Day at the Ion: Agentic Commerce

Don’t miss the latest installment of Mercury Fund Day at the Ion, previously known as Software Day. The recurring monthly event features office hours (by application), a keynote and networking opportunities. This month's topic focuses on agentic commerce.

This event is Tuesday, April 14, from 3:30-7 p.m. at the Ion. Register here.

April 19 – UH Energy Industry Crawfish Boil

Head to the UH Cullen College of Engineering Green Space for the 35th annual UH Energy Industry Crawfish Boil. The event will include a student showcase, STEM activities, a kids zone, live music, networking and, of course, crawfish. Proceeds from the event will support the multidisciplinary capstone fund that aims to increase professional readiness for Cullen College engineering and technology students.

This event is Sunday, April 19, from 1-5 p.m. at the Cullen College of Engineering Green Space. Find more information here.

April 24 — Rice Business Healthcare Conference

Leading experts, innovators and the next generation of healthcare leaders will converge at the Rice Business Healthcare Conference. Hosted by the Rice Business Healthcare Association, the conference will explore AI's potential impact on the sector.

This event is Friday, April 24, from 8 a.m.-2 p.m. at McNair Hall on Rice University's campus. Find more information here.

View All Listings