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5-bed/4-bath Urban Town House BTR for SoCal multigen families. $250M pipeline. Workforce housing Strategy + Execution. Dev Services. The Real Signal Newsletter
California
Joined April 2009
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Workforce housing has almost zero new supply in every major U.S. metro.
Market-rate developers chase high earners downtown and upper end suburbs.
Tax credit deals serve the lowest-income renters.
The family earning $80K–$120K? Almost nobody is building for them.
That gap is where we operate.
We build 5-bed/4-bath Urban Town Houses (BTR) for multi-generational multi-earner working families in SoCal.
$250M pipeline.
Massive unment demand in this family centric workforce housing space.
Maps show why the demand is concentrated here.
Urbanized suburbs are a seam: densifying corridors on one side, single-family fabric on the other.
We coined the term for that edge: where main streets densify over time (commercial, higher-density residential, thoroughfare energy) and the smaller side streets behind them stay mostly single-family.
Workforce housing for multi-earner families fits best in that margin, not on the Main Street strip, not deep in the R1 fabric.
That edge between corridor and neighborhood is where workforce housing belongs.
The Income Middle is the income band where workforce housing families actually live.
Households that earn too much for True Affordable housing and not enough for Luxury rents.
This middle income band sits roughly at 80–150% AMI. Directionally that matches the $80k–$120k SoCal workforce supply-gap that we build into.
Most new supply still aims at the ends of the spectrum. The middle income band is deeply underserved.
Workforce housing is the category that sits in that middle income gap.
Most workforce housing starts at the income line and works backward to a unit.
We start with the household.
Five bedrooms. Four Bathrooms. Three Stories. Two car garage.
One rent split among multi-earner families. Kids already in the local schools. Church down the street. Family close. Work close.
Then we find the cities and neighborhoods where these families already live.
Then we build that.
Absolutely, nearly all tenants in workforce housing stay 4+ years, things like your own garage help that.
I haven’t laughed this hard in quite a while ;-)
This American did an interview with an AI recruiter
If you speak nothing but nonsense to the AI agent, it doesn’t correct you or ask you to go into detail. The AI recruiter actually has a conversation with you that makes no logical sense
There seems to be no flags in the conversation and it just speaks nonsense back to you
Apparently these AI interview agents are only for first rounds of recruitment. So they are programmed to be warm, never accuse the candidate of being unserious and just do information gathering
I also found that Language models these are using are extremely good at turning a ‘bag of nouns’ into a grammatical recap. That’s what’s happening in this video, she keeps recapping what he’s saying even though it’s nonsense
If everyone did this then companies would be forced to stop using AI agents for interviews
Ask a working class family what they fight for every week. Parking.
That is why one of the primary competitive advantages in our workforce housing units is a private two-car garage with direct access in every unit.
SoCal households already have two cars. Traditional rental housing make them park in the parking lot, or parking garage, or in the street. Either way, they’re loading groceries far away from their front door.
Imagine, you work the night shift or get home after dark, unlike any apartment you’ve ever lived in, when you live in our projects, you open your roll up garage door, pull in, close it and you’re now in your own bubble. Like a house.
That is the amenity they use every day. That is why they pick this product.
Designed and built to rent, lives like a house.
Three stories is the equilibrium point.
Revenue per square foot and cost per square foot rise and fall with density.
The highest density projects have the highest revenue per square foot, but spreads are thin.
The lowest density projects have the lowest revenue per square foot, and spreads are thin.
The widest spread sits at three-story wood frame.
That is where the workforce housing model holds, where the gap between revenue per square foot and cost per square foot is widest, meaning yield on cost is highest.
Workforce Housing Case Study: 3801 Franklin Avenue, Fullerton.
UTH rental townhomes. Built. Rented. Sold.
Highest per-unit valuation in the Orange County market at sale. $635,000 per door.
The project carries an affordable unit under a density bonus agreement. That unit is paired with a Section 8 voucher family.
2020 five-bedroom FMR was $3,704. Utility allowance $336. Net $3,368. Our market rent was $3,500. A $132 gap.
We always occupy all of our density bonus units with Section 8 family voucher holders. It’s very difficult for larger families to find large units that both serve their family lifestyle and accept the voucher.
Win/win.
Once a family has five bedrooms, four bathrooms, a two-car direct-access garage, a ground-floor bedroom suite, in a workforce housing unit that lives like a house, the apartment stock next door cannot replace that.
We named that the “Hard to Replace” housing type.
They would have to split up their family to live in any other unit type.
The result is some of the lowest turnover in the BTR multifamily marketplace.
San Francisco Standard, Sept 10.
A new SF teacher starts around $80,000. A one-bedroom in the city rents for more than $4,000 a month. That is about 60 percent of the salary before taxes.
How to solve this: Districts up and down California are building their own housing so they can keep teachers.
That is a market signal.
Employers are becoming developers because the housing market does not house the workforce.
As I tell people, our UTH workforce housing is just one offer. We need thousands more workforce housing offers and innovations.
OZ investments are asked to do two jobs at once.
Put capital into a qualified census tract with community benefit. Generate competitive returns.
Often housing that scores on impact does not produce sufficient private-capital yield. Often housing that clears a yield is not in a qualified OZ tract.
UTH workforce housing sits in both.
Urbanized suburbs where we build are already OZ tracts. The families already live there. Multi-earner households keep occupancy stable and turnover low. The UTH product has produced profitable exits.
Social impact. And a profit.
That is the double bottom line OZ capital needs.
Workforce Housing Case Study: 1029 S. Montebello Blvd. Montebello, CA
UTH rental townhomes for multi-generational multi-earner working families.
Built. Leased. Sold.
The LPs made a 33% IRR.
That was the final value test from the original UTH demonstration phase.
Multiple completed projects as social and financial proof.
Rents keep climbing. Wages do not.
That gap is the workforce housing market.
NLIHC, Out of Reach 2026: a full-time worker needs $29.19 an hour to afford a one-bedroom at fair market rent. $34.73 an hour for a two-bedroom.
Eighteen of the nation’s 25 largest occupations pay less than that two-bedroom wage. About 74 million workers. Almost half the nation’s workforce.
This is not a new issue. Rent has outpaced income for two decades.
Workforce housing solves that gap by enabling multi-earner families or roommates to share income and expenses under one roof.
One paycheck does not have to carry the rent alone.
We invented UTH workforce housing in our hometown. Long Beach, CA.
The first demonstration projects were in our hometown:
325 Daisy
538 Golden
1719 Cedar
Then 1491 Atlantic and 1115 Artesia.
The families we house already live in the surrounding neighborhood fabric. We do not wait on new household formation. We pull households out of existing apartment units that are already here and give them a unit that can house their families.
1827 Pacific is next.
9 UTH units. 3 ADUs. Entitlements in process. Raising $2 million of Opportunity Zone equity now.
Same city. Same product.
Pairing private OZ capital with a workforce housing model.
New household formation is the primary driver for all multifamily development.
New household formation. Population growth. Job growth. Kids moving out and signing a lease.
That was until now.
We created a workforce housing model where demand does not depend on household formation.
Our projects use recombination. That is a term we coined.
The units pull families out of apartments and neighborhoods around the site. Adult kids move home. Grandmother moves in from across town, or across state lines. The family comes back together under one roof.
That is recombination.
Classic formation drivers are not required. The household components already exist. They just were not in one unit.
We deliver the unit that enables recombination. The extra bedrooms make the household possible.
How to we accomplish this for our woman?
there is a type of female orgasm that bypasses the spinal cord entirely and travels through the vagus nerve directly to the brainstem.
it is neurologically distinct from a clitoral orgasm. it activates different brain regions. it produces different neurochemicals. and women who experience it describe it as a full body event that lasts 2 to 5 times longer than any other type.
the cervical orgasm. triggered by stimulation of the cervix, the deepest reachable structure in the vaginal canal. the nerve pathway is the vagus nerve, the longest cranial nerve in the body, running from the brainstem to the abdomen without passing through the spinal cord. this is why women with complete spinal cord injuries above the level of genital sensation can still experience cervical orgasm. the signal doesn't use the spine. it has its own highway.
the sensation is described differently from clitoral orgasm. clitoral orgasm is localized, sharp, building to a peak, then releasing. cervical orgasm is diffuse, deep, spreading through the entire body, building in waves rather than a single peak, and lasting significantly longer. some women describe emotional release during cervical orgasm including involuntary crying not from pain but from the intensity of the neurological event.
the practical challenge: the cervix is only comfortably accessible after full tenting (15 to 25 minutes of arousal). deep positions (modified missionary with legs elevated, or positions allowing deep penetration) combined with slow sustained pressure on the cervix rather than rapid thrusting. the cervix responds to sustained pressure, not impact. pressing and holding is more effective than repetitive striking.
most men have never heard of this because most sexual education focuses exclusively on clitoral anatomy. the clitoral orgasm was mapped first and received all the research attention. the cervical pathway through the vagus nerve was documented more recently and has received a fraction of the public awareness.
there are women who have experienced every type of clitoral orgasm available and have never been stimulated in the way that activates the vagus nerve pathway. an entirely separate neurological experience exists that most couples never access because nobody told them the anatomy supports it.
A workforce housing model can scale fastest when the build product can be repeated. Increasing speed of execution, decreasing complexity and friction, all increasing YOC.
We use one standard plan. Same unit, project after project.
This one plan buys you:
Same unit plans for bidding
Same work scopes for the trades
Reduct mistakes
Costs get predictable
Homebuilders figured this out decades ago. We applied it to rental housing.
Replicable drives increased returns attracting private capital to return and do the next one.
True affordable is capped by subsidy. A repeatable market-rate product is not.
UTH is a vastly scalable workforce housing model because the build plan is strategic, competitive, and effective.