All Wood ADU, LLC, founded by Steve Roberts in Boise, Idaho, in the fall of 2024, aims to capitalize on the region's burgeoning market for accessory dwelling units (ADUs). With a strong background in construction and a solid vision for innovative housing solutions, the company blends superior craftsmanship with unique design concepts. This report outlines key aspects of the company's operations, marketing strategies, competitive landscape, and financial projections.
Company Overview
Steve Roberts brings nearly 17 years of experience in the construction industry, specializing in framing and project management, previously operating All Wood Construction in Vancouver, WA. Motivated by personal experiences and local demand, All Wood ADU focuses on crafting nine uniquely themed ADU models that cater to diverse homeowner needs. These models include "The Off-Grid," "The Artist," "The Musician," "The Greenthumb," "The In-Law," "The Host," "The Mancave," "The Cabana," and "The Rizz." Each unit is designed to maximize livable space while enhancing the aesthetic appeal of the existing property.
Market Opportunity
The recent updates to building codes in Idaho have paved the way for homeowners to construct ADUs, as many properties now have the potential to maximize their usable space. All Wood ADU primarily targets homeowners in the Treasure Valley region with the equity and financial capability to invest in an additional dwelling unit. The growing demand for versatile living spaces and the desire for eco-friendly solutions position All Wood ADU advantageously within the market.
Marketing Strategy
To generate awareness and attract customers, All Wood ADU employs a multifaceted marketing strategy that includes:
**Home Shows:** Participation in regional home shows to showcase our offerings and engage directly with potential clients.
**Digital Advertising:** Utilizing Google AdWords campaigns to reach targeted audiences online and drive traffic to our website.
**Social Media:** Active promotions on platforms such as Facebook and Instagram to connect with homeowners and showcase successful projects and testimonials.
**Community Outreach:** Distribution of flyers and direct engagement initiatives to educate the community about the benefits of ADUs.
**User-Friendly Website:** An easily navigable online presence that provides detailed information on services, themed ADUs, and customization options.
Competitive Analysis
All Wood ADU faces competition primarily from 208 Tiny Homes, which has established a strong social media presence through aggressive marketing campaigns. However, All Wood ADU distinguishes itself by offering custom-designed ADUs produced in collaboration with local contractors, utilizing high-quality, eco-friendly materials. Additionally, our unique thematic designs and optional turn-key upgrades, including full interior design and décor, enhance our value proposition. Our goal Is to make All Wood ADU “THE” ADU builder In the Treasure Valley, known for keen attention to details from standard solar power In every Signature ADU, to heated towel warmers.
Financial Overview
Currently, All Wood ADU's overhead costs are low at approximately $800 per month, allowing for several viable routes to profitability. The estimated cost to construct a Signature ADU Is approximately $225 per sq foot. A 450sq foot “The In-Law” ADU would cost roughly $100,000. Given a market selling point of $229,000, the potential profit margins are substantial, offering significant returns on investment while contributing to the growing trend of sustainable living options.
All Wood ADU, LLC is poised to make a significant impact in the Treasure Valley housing market with its innovative ADU solutions, strong local partnerships, and clear understanding of consumer needs. Continued focus on quality, unique designs, and effective marketing strategies will drive growth and establish the company as a leader in the accessory dwelling unit sector. Future efforts should aim to enhance brand visibility and capitalize on the expanding opportunities within the region.
Increasing demand
- The need for extra living space is growing, and housing costs are increasing. The City of Boise requires 2,770 units every year for the next 10 years to meet demand; 77% of this demand is for housing affordable to those earning 80% or less of the area median income.
- Over the last 3 years, housing construction in Boise produced 4,146 units less than the need.
- Neighborhoods, on average, need to increase housing density by 26% to meet housing demand.
Compass. (2021). Housing Needs Analysis. City of Boise. https://www.cityofboise.org/programs/housing/housing-needs-analysis/
Eased restrictions
- The city loosened restrictions on ADUs in 2019, increasing the allowed size from 600 to 900 square feet, allowing a second bedroom, and reducing parking regulations.
- Steady increase in permits
- The number of ADU permits issued in Boise has increased steadily, from 14 in 2017 to 20 in 2019, and nearly 30 in 2022. In 2024, the city received 38 applications for ADUs, with 25 approved so far.
Neighborhoods
- Most applications for new ADUs are for the North End, with the Central Bench being the second most popular destination.
Benefits
ADUs can be a good investment and way to maximize your property. They can:
- Provide high-quality, less expensive accommodation in popular neighborhoods
- Boost supply and bring down costs
Funding Request & Proposal
Option 1
$100,000 with a 5/2/10
5% pay back per month beginning on month 3
2% of property sale
10% interest on loan
Anticipated ROI*: $11,972-13,210.62
*based on example ADU on page 5
Option 2
$100,000
No monthly payback
15% of property sale
Anticipated ROI*: $14,791.05-$24,079.65
*based on example ADU on page 5
Option 3
Initial funding of the first build of each model at cost + 20%
Longer term partnership
Investor keeps 5%; company re-invests 5% Into additional builds.
After the first model builds at cost, ROI increases 7% on subsequent 5 ADU builds.