By Lydia Lee | Builder
For more than a decade, Eric Thompson built high-end spec infill homes in Portland, Oregon. His company, Oregon Homeworks, had 10 to 15 starts a year, which sold for $1 million and up. But about three years ago, Thompson started building homes with accessory dwelling units (ADUs), splitting the lots, and selling the ADUs separately in anticipation of Portland’s zoning reforms. Today, his business model revolves around building multiple homes on lots previously zoned for single-family housing.
“There’s a whole host of people that don’t need three-plus bedrooms, but nobody has been building for these people—outside of apartments—for decades. They are the bulk of the bell-shaped curve of buyers,” says Thompson, who is seeing the same profit margins as before but on more revenue, resulting in a healthier bottom line. “We’re excited about being able to build architecturally designed, energy-efficient, brand-new homes in these great walkable neighborhoods at prices people can afford.”
