LivingHomes Prefab Home is Wicked Expensive
Wednesday, August 2, 2006, by jwilliams

2006-08-kappe.jpg

The LA Times today does what we have been unable to do (besides form a coherent non-run-on sentence without superfluous commentary in parentheses), visit the interior of the Ray Kappe designed LivingHomes prefab install in Santa Monica. Christopher Hawthorne takes a look at the hub-bub surrounding prefab and the high-cost factor that has yet to be resolved. Prefab units, built for efficiency, speed, and low-cost are reaching prices that were once the domain of custom built homes. Part of the problem is due to location - Santa Monica's stringent building requirements and the sloping lot can prove difficult for any home builder.

"In the regions where the market is expensive enough to make prefab such an enticing option — Los Angeles, the Bay Area, Seattle, Boston or Washington, D.C., for example — most of the remaining vacant lots are steep or inaccessible, or have already been rejected by speculative builders for some other reason. On a lot like that, a pricey foundation, retaining walls or other site work is often required, cutting into the potential savings that draw customers to modular design in the first place."
As the promise of prefab begins to fade, we're left with no choice but to advocate people start living in grass huts. Cheap and totally sustainable, the grass hut harkens back to simpler times when housing was cheap and Angelenos and dinosaurs coexisted in peace.
· Such a Deal? [LA Times]
· Getting Closer, LivingHomes Prefab Almost Done [Curbed LA]
· Prefab Goes Live in Santa Monica [Curbed LA]




Comments (11 extant)

1.

One of my questions last time that this topic came up was "How much did the foundation work cost?" I'll take a stab and say ~$300K. Anyone for ~$400K?

We recently had a neighbor add a second story and a little more out back to their post WW2 1950's bungalow/shoebox. When all was said and done, this addition that was forecast at ~$350K came in more like $425K because the bones/foundation of the house were poorly aligned and needed reinforcement before anything else could be built on top. (So the construction blew the budget out of the water, what's new?)

But, for maybe another $200K or so, they could have had something like the house in this article plopped on their flat lot (assuming demo and foundation prep is another $100K at most?). All new bones, etc.

That's why I am interested in following the 'luxury pre-fab' stories. I don't think that I am going to save money over a 'custom' build, but if I can get some time back on the build schedule on our 'flat lot', that could be a good offset.

Ramble off. More coffee please.

By John at August 2, 2006 10:28 AM

2.

I think the prefabs would be perfect for the lots that fall under LA's new Small Lot Subdivision Ordinance. Divide a multi-unit residential lot into separate parcels; drop in three or four prefabs, and you have a cutting-edge alternative to condos.

By Miss Teresa at August 2, 2006 11:44 AM

3.

I'll drink to that, Miss Teresa. Living on a multi-house lot--in my case, a 1944 tract house with a 3-unit apartment building where the backyard once as--is a much more pleasant experience than any apartment building.

By Pete at August 2, 2006 12:52 PM

4.

The Ocean Park prefab is a pretty complex structure...The city of Santa Monica's need to inspect everything and lack of familiarity with prefabs totally slowed down progress on the project...The lot is actually quite sloped too, not as gently as the LA Times seemed to indicate...

Microhomes may look increasingly attractive for Los Angeles now that the lower middle class are being forced into trailers or camping on the street in vans...

Only problem is they look a bit like outhouses...

Check out...

http://www.moebeldirekt.co.at/wordpress/bilder/micro_house_ext.jpg

and,

http://www.myenvirolet.com/testimonials/020705-spaceage.html

By Anonymous at August 2, 2006 1:15 PM

6.

The run-on sentence part could have been helped by making the comma in the first sentence a semi-colon.

By Brady Westwater at August 2, 2006 8:30 PM

7.

all,

thought you might enjoy my letter to the editor re: this article. and jw, you're welcome to tour anytime. contact me.

steve glenn

Dear Editor,

Regarding your coverage of my company, LivingHomes, in the recent architecture review “Such a deal?” (August 2, 2006), I’m writing to correct certain inaccuracies. Christopher Hawthorne’s story paints an unfair and incomplete characterization of my company and my mission as an entrepreneur.

· GREEN FEATURES – I stand firm by my claim that the LivingHomes model home does indeed feature an ‘unprecedented’ number of sustainable features for a production home. There are no other homebuilders in the United States that I am aware of that incorporate such a level of sustainable materials and systems into their production homes. To wit, we are on track to be the first production home to achieve the highest level of LEED for Homes certification (Platinum) from the U.S. Green Building Council (USGBC). During our interview, Christopher challened my use of 'unprecedented,' and I specifically detailed these facts and the elements I thought were unique for a production home and I invited him to investigate and confirm or deny my claim. I was confused, then, that Christopher on the one hand criticized me multiple times for my assertion -- and even seemed to suggest we're "green washing" (see below) -- yet he offered no data or interviews that called our claims into question. Seems like even a simple call to the USGBC to understand how many production home builders were on track to receive a platinum rating for their homes would have been warranted.

· LIVINGHOMES PRICING – We have never made the claim that we are selling affordable housing, but at $250/sf we offer dramatic savings to the consumer who would otherwise commission a renown architect to design a custom home. The price for the LivingHomes model home is clearly far less than what others would charge for a 72% glass/polycarbonate, steel-framed architectural home with the highest level of environmental finishes. (By the way, Christopher was unhappy I wouldn't share the foundation cost. It was $130/sf, the exact same, I told him, that it would have cost were the home stick-built.) It turns out, though, that the final price of the model home is irrelevant. Companies can spend huge amounts of money in R&D to create prototypes. The key issue, as I discussed with Christopher, is the price of the homes we've actually sold and are producing in volume, which is the only means through prefab can provide great cost advantages. It would seem that Christopher used LivingHomes to make a larger point about the high price of prefabs without differentiating between the price of the prototype and future rollouts, where homes are manufactured in higher numbers. Without a price history, it is impossible to make a larger point about escalating costs, as Christopher is apparently trying to do in this article. More to the point, I freely shared the pricing we're selling our homes for and the fact that we're signing fixed price contracts -- a great arbitor of how real a price is.

· QUALITY + SCHEDULE – Christopher also fails to mention two other major advantages of prefab : Because the house has to withstand travel, prefabricated homes are of a higher quality compared to stick-built homes that are built on-site. Also, since site work and house fabrication can take place simultaneously, the construction schedule can be significantly shortened, reducing cost in the long-run.

· RESPONSIBLE MARKETING – It is not a secret that we are targeting people who care about design, healthy homes and sustainability. Green features are not a marketing tool for us. As with companies like Whole Foods, Patagonia and Interface, they are the core of our business model. We're proud of that.

Regarding specific quotes attributed to me, I am extremely careful with the language I choose to describe my company and mission. The following are misquotes on Christopher’s part, perhaps due to his failure to take notes or record our conversation for accuracy. Specifically:

· I never said that “the house is poised to reinvent how architecture is produced and marketed.”

· The house does indeed include an unprecedented number of green-design features, for a production home. Christopher neglected to include this important note.

· I never said that “Ray Kappe is the world’s greatest living architect.” I said that he is my favorite living architect.

· I never claimed that “the house sets a new global green standard in green architecture.”

· LivingHomes can indeed be built on hilly sites. Most of our clients are on hilly sites.

· The houses do not feature fly-ash countertops. The concrete that forms the floor is mixed with fly-ash. The countertops are made of recycled cellulose and recycled glass or porcelain.

Judging by the reactions to Christopher’s piece that I’ve received, I am not the only one to feel that his coverage was lacking.

From a blind e-mail I received today:

“I just wanted to tell you that I admire the work you are doing with your company. While the LA Times article touched on the beautiful and green elements of your home, in my opinion it missed the opportunity to discuss how you are moving the green ball forward. I felt that the writer missed the point. I love your house and respect your vision for housing in these environmentally precarious times.”

Sincerely,

Steve Glenn

Founder, CEO, LivingHomes

By steve glenn at August 6, 2006 11:30 PM

8.

Well said Señor Glenn... All I know is that this home is an excellent addition to my neighborhood...Property values in Ocean Park are skyrocketing as this former "cheapest neighborhood in Santa Monica" is sporting more and more million dollar+ homes...

The L.A. Times was just being snarky, in my opinion...I look forward to seeing some tomatos and corn growing on that prefab's roof!!!

By Skwerl at August 7, 2006 8:39 AM

9.

Great email Steve! I believe my wife and I are two of your biggest supporters. Cecelia was kind enough to grant us a tour of this amazing home, which we bought plane tickets to see!

It is nothing less than spectacular. When you simply look at the pics online, it only tells a small part of the story. When we first saw the master, open to the rest of the house, we were like "we are too private to live in a glass house", but every detail has been thought of. Shades roll down on the windows and doors, and three heavy wood doors roll into place to create a privacy partition from the rest of the house...ingenious.

The bathrooms are what really blew us away, and there are no pics on the livinghomes site yet, since some finish work was still being done. These bathrooms are incredible. The ceilings are either 9 or 10 feet high and are completely glass! The amount of natural light is simply amazing, even on rainy days. Naturally, there are shades to close for privacy if necessary. The countertops are recycled, but look similar to top of the line silestone.

For the techys, the computer that regulates the houses solar cells looks awesome! They've got it tucked away in the garage, but personally, I'd put it in the corner of the living room! What a great conversation piece!

For 2500 sq ft, it is amazing how big the home seems. You've got an office space, art studio space, effectively three bedrooms, and two and a half baths, plus a 500 sq ft rooftop.

The only fault I can find is the price, and I'm really hoping to get the home built here in Knoxville, Tennessee, and I'm hoping for around the $175 to $195 sq ft range. I'm willing to wait a year or so for the prefab production to catch up to make this a reality. It's worth the wait!!

By Scott Wilkerson at August 27, 2006 10:07 PM

10.

I have been seriously investigating prefab, modular homes and nothing has impressed me more than livinghomes... Let the writers write and the naysayers nay... You are on the right track, I am searching for my land now.

By daved at March 21, 2007 8:07 PM

11.

I am glad that Steve Glenn responded to the article. I found it lacking. I am a LA local and can't wait to see more Living Homes and other "green homes" around the neighbourhoods. I haven't had the pleasure of seeing the house in real life, but it looks stunning from the pictures. I am one of many that hope to one day be able to have one built as well.

By markus at March 31, 2007 12:25 PM





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