According to a report on national housing starts released today, U.S. homebuilding surged to nearly a 15-year high in March. The housing market demand is being fueled by the demand of millions of Americans who continue to work from home and seek larger accommodations.
Mosaic, a construction technology company is addressing the state’s housing shortage in partnership with one of Arizona’s most forward-thinking builders as well as a premier land developer, by offering innovative, sustainable designs with improved efficiencies, while also reducing construction waste.
READ ALSO: Here’s the outlook for land and housing in 2021
According to the Arizona Association of Realtors, between March 2020 and March 2021, the number of active listings statewide fell 53 percent, while sales rose by just over 10 percent. The sharp decline in listings meant just over one month’s worth of inventory at current sales levels, or falling nearly 55 percent, and prompting sales prices to rise by nearly 12 percent.
In general, because a balanced market between buyers and sellers is generally considered closer to six months, this inventory shortage is putting more pressure on homebuilders to add more supply, while also maintaining quality standards. That’s where Mosaic fits in.
In Prescott Valley, Mosaic serves as the general contractor and oversees the entire building process for 350 new homes at Jasper by Mandalay Homes, a collection of single-family, net-zero energy homes at the base of the area’s picturesque Glassford Hill. Currently offering 11 different floor plans, homes at Jasper will range from approximately 1,231 to 2,531 square feet.
“Mandalay was approaching the limits of building materials and product innovation, and we’ve been searching for a company like Mosaic to catalyze the next step,” said Dave Everson, owner and founder of Mandalay Homes. “Mosaic has reduced our framing time, increased our control over the construction process, and has operated with admirable attention to quality.”
In an analysis by the National Association of Home Builders (NAHB) of U.S. Census Bureau data, the nation’s builders pulled 17 percent more permits in January and February 2021 versus the same months of 2020. In Arizona, the year-over-year increase was even more rapid at 26 percent, suggesting that the state’s builders are betting that the strong demand for new homes is part of a longer-term trend. According to PropertyShark, the Phoenix metro area reported the third-highest gains in the median home sale price between 2009 and 2019, with many buyers applying these gains towards larger homes.
Reports released today by the Commerce Department indicate U.S. housing starts surged 19.4% to a seasonally adjusted annual rate of 1.739 million units last month, the highest level since June 2006. A combination of increasing COVID-19 vaccinations, warmer weather and continued fiscal stimulus are driving the economy, with growth this year by economists expected to be the strongest in nearly four decades.
In Flagstaff, Mosaic is also working with Mandalay Homes as the general contractor and architect for Adora at Timber Sky, a collection of 35, single-family homes ranging from approximately 1,650 to 1,850 square feet. Nationally recognized as an industry leader in energy conservation, indoor air quality, and water sustainability, Mandalay Homes has earned the Indoor airPLUS Leader Award six years in a row for its Indoor airPLUS homes.
Developed by Vintage Partners, the Timber Sky master plan is one of only 11 ‘dark sky’ communities in the world, allowing residents and visitors to take full advantage of northern Arizona’s clear skies for stargazing.
Elsewhere in Flagstaff, Mosaic is acting as the general contractor, architect, and site planner for Vintage Partners to create the 200-home Sky Cottages community. This unique single-family, build-to-rent (BTR) neighborhood is based on three core principles: Sustainable energy efficiency, shared amenities and spaces, and multi-modal transportation options.
Located on 20 acres adjacent to the Timber Sky master-planned community, the residences will include their own front door to the outside instead of a common hallway. In addition, many homes will also feature private yards or patios. Interior spaces will range from approximately 750 to 1,250 square feet, feature all-electric appliances, and at least 20 homes will be constructed with solar panels.
“Mosaic has created immense value for us in the Flagstaff, Arizona market,” said Walter Crutchfield, Managing Partner at Vintage Investment Partners. “Not only have their home designs improved our design guidelines, but the way they’re building the homes will raise the bar for innovation in developments around the country.”
In order to accomplish this, Mosaic brings an extensive range of experience and the power of their proprietary software to make homebuilding scalable. Their end-to-end homebuilding software platform delivers value throughout the entire homebuilding process, from design through construction, and even extending into warranty calls.
“Our mission is to build places people love and make them widely available,” said Salman Ahmad, CEO and co-founder of Mosaic. “We have developed software technologies that make construction more efficient and scalable. With every home Mosaic builds, we are expanding an ecosystem of like-minded partners eager to improve our communities. By scripting and automating the construction process, we are able to build in a way that is more dynamic, allowing us to build more diverse and unique homes anywhere in the world.”
The Mosaic team combines construction, technology, real estate development, academic, and business expertise. Members hail from Google, Microsoft, Palantir, MIT, Harvard, and Stanford, bringing the power of software to construction. Since 2017, they have provided construction management and related services to developers and homebuilders in Arizona.
