How to Boost Housing Supply with Basement Conversion?

Ike Bams
May 14, 2024
3 min read
Photo by Adam Winger / Unsplash

Bluepods is a DIY retrofit basement method to boost housing supply.

Basements are add-on spaces for homes, may it be the attic or the cellar. These areas can be used as extra storage spaces or a cozy living area. Like any other area in your home, extra storage spaces also come with few issues including molds, humidity, leaks, floor sinking, and others. The good thing is that all these problems can be addressed with an efficient and customized storage plan. This storage area can even be utilized and turned into an apartment or a rental unit to boost your in-hand income. With the right planning and design, your basement can be profitable.

Making profits from extra storage spaces

Photo by Michal Balog / Unsplash

The National Association of Remodeling Industry (NARI) ranks turning a basement into a finished living space in the top 10 modeling projects. It doesn’t only improve your space but also boosts your resale value. The NARI Remodeling Impact Report (2017) reports that homeowners could recoup almost two-thirds of their costs for a basement conversion. If you are naturally creative and have a streak of doing things your way, a DIY conversion will cost you a lot less.

Basement conversion for affordable housing in the CBD

A study by the Citizens Housing and Planning Council suggests that NY’s Mayor Bill de Blasio’s initiatives to improve the city’s house problems include a program to convert 38,000 basements to single-family homes. It’s part of the CHPC’s Making Room initiative that explores how alternative housing typologies meet the needs of New York’s diverse households. The basement conversion program is believed to be an efficient and exciting way to add residential density and expand housing choices in the expensive and highly constrained urban market.

Unfortunately, only very few basement dwellings comply with the building and fire codes, and tenants are forced to live in poor and dangerous living conditions. The program helps in upgrading these basements even with minimal upgrades. The changes in how basements are recreated will help increase the supply of affordable homes in the city. Moreover, it also allows homeowners to earn extra income.

Why Basements?

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There’s very little supply of basement apartments in the US despite the advantages that come with it. These new rental units allow people to have roofs over their heads without spending too much. There’s no land to buy, house to maintain, and a mortgage to pay. It is a great solution especially for underserved groups who want financial stability such as new immigrants, elderly residents, and multi-generational households.

Homeowners who lease their basement spaces can also use the extra income to pay for their mortgages, home maintenance, and other expenses. Revamping your storage and other extra spaces and turning them into basement apartments take out the problems of supply and unsafe living conditions. It’s a safer and more stable housing arrangement that’s beneficial for both homeowners and tenants.

Zillow’s Camille Salama said that there are about 133 million housing units in the United States which aren’t all occupied. About two-thirds of all these millions of housing units are 1-unit buildings or standalone houses. 42% of these homes have basements. That’s the number of basements you can turn into affordable homes!

Why We Launched Bluepods? A DIY retrofit basement method to boost housing supply.

Bluepod is a proptech startup that aims to provide DIY smart walls or prefabricated wall panels that are specifically designed for basement finishing. The all-in-one paneling system includes framing, insulation, drywall, pre-wired and pre-installed plumbing. The plumbing is ready to connect for bathroom and kitchen fixtures such as toilets, showers, bathroom sinks, kitchen sinks, and others.

With experts at your side, we can help you retrofit your basement apartments with proven, code-compliant technologies. You can help tenants have units without worrying about land costs and live in above-grade units with superb amenities. All these all the while getting a new source of extra income too.

Once that is sorted, imagine utilizing an earlier purposeless space in the form of an apartment or a rental unit that would simply boost your in-hand income. This can be a hidden opportunity to turn a basement area into something profitable and fulfilling.

Are you looking out to turn your basement into a profitable area? Check out today or speak with us for your questions and concerns.

Ike Bams and John Williams are founders of Bluelofst Inc. They are a new generation of millennial real estate developers based in Dallas, Texas who aim to transform vacant office buildings to residential communities. Visit our website: www.Bluelofts.Io and learn more about Bluelofts Labs. Build your dream with us!

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