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The Move Up Model

AUSTIN WILLIAMS, TAYLOR ANDERSON, PARKER ENCE

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Problem

Affordability for First-Time Buyers�The challenge for first-time homebuyers is the high cost of purchasing a full-sized house, which makes entering the housing market difficult. Many struggle to afford the upfront costs, leaving them unable to own a home.

Income Growth and Housing ExpansionAdditionally, as these buyers' incomes grow, they often outgrow their initial living spaces and face the burden of selling and moving to larger homes. This traditional process can be financially and logistically challenging, even as they build equity. The opportunity to expand housing without relocating is limited in many cases, compounding the affordability problem.

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Solution

Our solution is based on a phased development model where a smaller, no-garage home is initially built on the front corner of a lot, offering a more accessible entry point for homeownership. Utilities, including electrical, sewer, and water, are pre-stubbed to the back of the lot, allowing for seamless future development.

As the homeowner’s needs or financial situation evolve, a larger home can be constructed at the rear of the lot. The original smaller home is then converted into a Detached Accessory Dwelling Unit (DADU), providing the opportunity to generate rental income. This adaptable approach not only makes homeownership more affordable but also creates long-term investment potential for homeowners.

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Cost Savings

DADU Cost Estimate

  • Size: 800 SF (No Garage Included)
  • Lot Cost: $50,000
  • Land Development Cost: $65,000 
  • Vertical Construction Cost: $160,000
  • Total Cost: $275,000
  • Sales Price: $345,000

The average home price in Utah is around $515,000.

Our DADU is projected to sell for $345,000, making it an attractive option for first-time homebuyers. With land, building costs, and profit margins carefully structured, this phased approach allows buyers to purchase a home at a significantly lower price while also qualifying for Utah’s First-Time Home Buyer Assistance Program, which provides a $20,000 loan covering the 5% down payment.

With a household income below $80k and a typical 20% down payment, this strategy offers a highly affordable path for first-time buyers, providing future flexibility to expand the property as their financial situation improves.

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Thank you

AUSTIN WILLIAMS, TAYLOR ANDERSON, PARKER ENCE