In episode 209 of the Disruptors for Good podcast, I speak with Brett Hagler, CEO and Co-founder, of New Story Homes, on using philanthropy and market-based solutions to solve the global housing crisis.
- Subscribe on Apple Podcasts
- Subscribe on Spotify
- Subscribe on Amazon Music
- Subscribe on Overcast
The global housing crisis is a staggering issue, affecting 1.6 billion people who live without adequate housing. This crisis stifles the potential of millions of families, particularly women and children, across the globe.
New Story Homes, a nonprofit organization, has set out to tackle this problem through a unique blend of philanthropy and market-based solutions.
By integrating innovative technology with community-focused strategies, New Story Homes is revolutionizing the path to homeownership for vulnerable families.
Takeaways
- New Story's journey began with a mission to help vulnerable families access life-changing housing, leading to a decade-long evolution of its strategy and model.
- The transition to a market-based solution involved challenges, resistance, and a two-year metamorphosis, resulting in a hybrid model that combines philanthropy with profitable financing and lending.
- The future of New Story involves executing its model to attract large pools of capital, focusing on creating a product that customers love, and building a track record for accessing significant funding.
- The conversation highlights the potential of market-based solutions in the nonprofit sector and the importance of addressing important social problems through innovative approaches.
Sound Bites
"I think you learn by doing."
"I would love to try to help as many people as possible have life-changing housing."
Empowering Through Land Ownership
At the heart of New Story Homes' mission is the concept of land ownership. In many parts of Latin America, securing land is the first critical step towards economic stability and homeownership.
New Story Homes helps families purchase land, build creditworthiness, and unlock home financing. This approach shifts families from being mere beneficiaries of charity to active participants in their journey out of poverty.
By developing and selling land equipped with essential municipal utilities—water, sewage, electricity, and roads—at affordable monthly rates, New Story Homes ensures that these properties are not only accessible but also sustainable and integrated into the local urban context.
Innovative Housing Solutions
One of the standout innovations of New Story Homes is the use of 3D printing technology to build homes quickly and cost-effectively.
This method significantly reduces construction time and expenses compared to traditional building techniques, making it possible to provide immediate relief to families in need.
Beyond construction, New Story Homes focuses on the entire community-building process, developing housing products that meet the unique demands of local regions.
Families can use their land as collateral to secure first-time home financing, allowing them to either purchase one of New Story's housing prototypes or self-build the home that best suits their needs.
The Role of Philanthropy and Impact Investments
New Story Homes recognizes that addressing the housing crisis requires a multifaceted approach. Philanthropy plays a crucial role in funding the initial stages of projects, allowing the organization to acquire land and develop infrastructure.
However, to achieve scalable impact, New Story Homes pairs philanthropic funds with impact investments.
This blend enables the organization to extend its reach further down the market, serving families who are often excluded from traditional housing solutions.
By focusing on sustainable, market-based solutions, New Story Homes ensures that its initiatives not only provide immediate relief but also foster long-term economic growth and stability in the communities it serves.
Success and Future Innovations
The success of New Story Homes can be seen in the thousands of families who now live in safe, affordable homes in countries like Haiti, El Salvador, Mexico, and Bolivia.
Each project is a testament to the power of innovation and community collaboration in solving one of the world's most pressing social issues.
Looking ahead, New Story Homes continues to push the boundaries of what's possible in affordable housing, exploring new technologies and strategies to further reduce costs and increase the speed of home construction.
