Niche builder takes on marketing new urbanization concept

When Jack Wagnon began his development, construction and sales & marketing company in 2004, all three arms of the business were linked to the dual corporate mission of tying together affordability and sustainability.

As if building a business with these values isn't challenge enough, Wag-non is currently building skinny homes in the $300,000 range.

Wagnon was drawn to the challenge of turning something that has a stigma in the marketplace into a product that offers sustainable value and unique market appeal.

THE ANSWER

Ironically, Wagnon's decision to partner with Portland's Living Smart program --a 2004 competition which was designed to create a catalogue of pre-approved Narrow House Designs for Portland neighborhoods --is helping bust the perception that infill builds are low quality, cookie-cutter projects.

Prairie View Homes is currently building two of the competition winning designs --the Vargas and Higgins. Not only do these particular "skinny house" designs perfectly suit Prairie Homes' corporate ideals and mission, but each comes with a pre-approved permit attribute which is immensely valuable. "The amount of time we spend with the bureau of land development is miniscule," says Wagnon.

THE PROCESS

Of course, with smaller homes comes smaller profit margins, so expenses have to be carefully guarded. "At this point, building significant profit is a challenge. But, we are staying the course because we embrace what this city is doing and we understand that change requires investment."

Wagnon continues to work to bust the misperception that infill homes lack quality and should be priced accordingly. To help buyers get past the idea that these are starter homes, Wagnon markets them on a cost of operation vs. cost per square foot approach.

"Of course we have a vested understanding in the larger issues, but we don't necessarily market to that. We know that at the end of the day, people want to know why a home of this type with this pricepoint is valuable to them."

"I think everyone has been waiting for someone else to make the first move --and we're making it. We know it's a risky approach, because we are asking homebuyers, financers and suppliers to turn a corner with us. But, that risk is inherent in being a new breed of builder who is willing to find and fulfill a demand that is not being served."

THE RESULT

It's starting to work.

"We get calls all the time from people who tell us they think they get it, but want to come see what we're doing. They leave understanding that our homes add aesthetic appeal and quality to their neighborhoods. So far we've gotten nothing but positive feedback."

It is interesting that the typical barrier issues --political and neighborhood --are the least of Wagnon's challenges. The more ongoing challenge involves getting investors, appraisers and suppliers on board.

"As of yet," says Wagnon, "conventional lending institutions and appraisers don't quite understand this new breed of product. To them, it looks as if the product is not in line with the investment we're making. They are still being traditionally cautious --as they should be. Their job is to say prove it --and we are prepared to do that," says Wagnon.

In an area where people are growing stronger in their resolve to embrace a transportation friendly urban environment, Wagnon's company is leading the way.

"Of course there are nascent risks in what we're doing," says Wagnon.

But, that's what leaders do. They take risks.

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