Las Vegas is not known for being quiet. In fact, when the sun goes down, and the neon lights come on, the ‘Entertainment Capital of the World,’ comes to life for the 88 thousand tourists who arrive each day. And, with over 151,000 available hotel rooms, lodging for those tourists is not a problem.
However, another side of Las Vegas stays mostly hidden from the tourists. The 2022 Homeless Census found 5,645 people living in shelters or on the streets. It estimated that nearly 14,000 people experienced homelessness in the Greater Las Vegas Metro Area sometime during the year. The primary reason is a lack of affordable housing.
According to the National Low Income Housing Coalition, with the majority of its population in the Las Vegas Valley, Nevada has an estimated shortage of almost 80,000 affordable rentals for extremely low-income tenants. The median price of a home in Las Vegas is $405K. And the average rent of an 894 sq. ft. apartment is $1,460.
However, the affordable housing problem in Las Vegas and around the world could change thanks to a very innovative company based in North Las Vegas. Boxabl has developed a revolutionary way of building and shipping affordable modular homes that have been quietly gaining a lot of attention.
However, turning ideas into reality is costly, and to bring Boxabl to life, they raised over $100 million through crowdfunding with over 15,000 investors.
With a mission to revolutionize the standard of housing construction and affordability with an innovative, technology-based solution to mass-produce homes through advanced manufacturing, Boxabl has built a 300,000 sq. ft. assembly line factory to build and ship affordable homes. They are in the process of opening another 300,000 sq. ft. factory next door.
Paolo Tiramani, CEO and co-founder of Boxabl (with his son Galiano), an industrial designer by training with a history of mechanical patents, wanted to do some good and saw housing as a global national and global crisis.
“We didn’t start with the idea [for Boxabl], we started with finding a problem and then backed into an idea,” said Tiramani during a recent interview.
Boxabl’s first design product is a 20’ x 20’ single bedroom, single bathroom casita that has a kitchen with full-size appliances and a separate living area. The unit retails for an affordable $60,000. But even though Boxabl has developed a literal box for a home, the design team’s thinking is way outside the box when it comes to how these homes are built and delivered.
“Normal homes are made of little bits of wood nailed together. And they are really, really flimsy. We use something called structural insulated panel. There are no air gaps, or anything inside the walls. Our homes are made of steel, and concrete, and insulation, these things are insanely strong, much stronger than traditional buildings,” said Tiramani.
The casita comprises thirteen insulated panels with an exterior of galvanized steel, a footing of engineered wood laminate and PVC, six inches of Expanded Polystyrene foam, and an interior Magnesium oxide wallboard. All of the elements are bonded together with a poly resin glue. The panels are energy efficient and resistant to mold, insects, wind, fire, and floods.
The strength of each wall panel will hold up to 90 lbs. per square inch, allowing for the mounting of TVs, microwave units, and standard shelving. All the walls, flooring, and ceiling panels are produced using computer numeric control (CNC) cutting machines and a vacuum lamination system.
Because of this process, an entire pre-cut wall can be fabricated in 20 minutes. Then, using a semi-automated assembly line process, the floors and walls can be assembled, appliances, electrical, and plumbing installed, and a complete casita built in 90 minutes. They are working to bring the assembly time down to under 30 minutes.
The appliances are energy efficient; all lighting is LED, and the HVAC is a mini-split system. The average amount of electricity used is $28 per month. They also offer Tesla solar roof options.
Even though these casitas are small, the 9.5’ ceiling height and eight-foot windows make the living space feel spacious.
When shipped, a 20’ by 20’ unit is folded to 20’ L x 8.5’ W x 12’ H. Each 375 sq ft casita weighs 15,000 lbs. and is transported on a standard truck without the necessity of wide load permits, pilot cars, and mandatory overnight stops between states, saving hundreds to thousands of dollars in associated costs. On-site, the casita can be unfolded and completely set up in about an hour.
The key to the folding process is Boxabl’s patented steel hinge beams that also provide structural support. Boxabl has over 50 U.S. patents.
Boxabl’s first client was the U.S. government, with an order of 156 casitas. This first order allowed Boxabl to revise and refine the automation and assembly process. Currently, the company has 200 employees working four days a week in 10-hour shifts from 5:30 am to 3:30 pm. Fridays are research and development days.
During the UNLV’s Center for Business Economic Research (CBER) Outlook event last April, HR manager Porsha Jackson stated that one of Boxabl’s most significant problems is finding enough qualified workers. About 170 workers provide the labor to run the CNC machines and manufacturing processes, assemble, and ship the product.
Even though Boxabl can produce up to 7,000 homes per year in their current facility, they have plans to build a 4 – 5-million sq. ft. factory that will allow them to pump out a home every 15 minutes. Once the new building is operational, Boxabl will produce more export dollars than all other exports in the state of Nevada combined. The company currently has orders and deposits for 120,000 casitas and is expected to start making customer deliveries in the 4th quarter of 2023.
The question is, can a 20’x20’ single bedroom and bath casita solve a housing problem? By itself, not likely. However, Boxabl has developed designs that allow these units to be stacked three to five high and attached end to end to create an affordable apartment complex. In January, at the International Builders’ Show in Las Vegas, Boxabl unveiled the three-bedroom, two-and-a-half-bath “Home of the Future,” with an estimated starting price of $150,000.
Solving a social problem like housing is not something that one company can do alone. Boxabl provides an affordable product that significantly reduces the overhead cost of construction. But it will take real estate investors and governments to implement this product into the affordable housing market.
At Business Finance Corporation, we work with all kinds of companies, including manufacturers of all types, to help them turn receivables into the cash needed to develop new projects. Call 702-947-3800 or go to https://bfc.vegas/ to discuss maximizing your cash flow with accounts receivable financing.
Your Partner in Success,
David Cabral