WHY GINOSKO MODULAR
With so many cost-burdened families and individuals and a market desperate for a new supply of affordable, high-quality housing, there is a clear need for a new way forward. Fulfilling that need and charting the path forward is Ginosko Modular’s mission.
The Growing Affordable Housing Crisis
The United States is facing an urgent and growing supply crisis in affordable multifamily housing.
AFFORDABLE HOUSING SUPPLY CRISIS1
Affordable units built versus new affordable renter households (2000-2020)
The 2022 national hourly wage a full-time worker must earn to afford a rental unit without being “Cost Burdened” is $25.82 Per Hour for a modest Two-Bedroom and $21.25 for a modest One-Bedroom.2 Federal minimum wage = $7.25 Per Hour.
The problem is particularly urgent in the State of Michigan
Currently, the State of Michigan’s Affordable Housing ecosystem lacks the appropriate funding to address current demand.
48% of Michigan Renters pay too much for housing (Cost Burdened) and 28% of Michigan Renters reported extremely low incomes in 2019.1 Worse now.
Lack of Affordable Units
For every 100 Renter Households in Michigan,3 there are only:
- 36 affordable and available units for 30% of Area Median Income (AMI) Households
- 68 affordable and available units for 50% of AMI Households
In 49 of Michigan’s 83 counties, residents spend more than 57% of their income on housing and transportation.2
Without other resources, MSHDA’s only plausible solution was to:4 Borrow 9% LIHTC’s from future years to pay for “Today’s Pandemic Related Cost Crisis”
Affordable and Available Homes per 100 Renter Households
Affordable Rent for Low Income Households
Minimum Wage Worker
Households Below 30% of Area Median Income
Households Below 50% of Area Median Income
Fair Market Rent
1-Bedroom Fair Market Rent
2-Bedroom Fair Market Rent
1National Low Income Housing Coalition – Out of Reach 2022
2Housing Crisis Solution Coalition (HCSC), 2021: NLIHC tabulations of 2020 5-Year ACS PUMS
Designed for Today’s Challenges
Ginosko Modular was created to address the needs of this under-served space and to overcome the structural challenges of today’s world: with vertically integrated optimization and efficiency to help mitigate pandemic pressures, supply chain disruptions, and industry inefficiencies. The result was a seamless and streamlined operational model and a newly constructed, custom-designed 105,000-square-foot production facility in Romulus, Michigan: where Ginosko Modular’s creations come to life.
New Facility—New Capabilities
- Ginosko Modular’s cutting-edge manufacturing facility allows the company to control 60% of its production costs, eliminating many of the substantial markups in traditional construction supply chains.
- Ginosko Modular’s innovative production processes will make it possible to build faster and get to market quicker, also reducing financing costs.
- By relying on an in-house team of skilled professionals, Ginosko Modular will be able to mitigate the risks and costs associated with a growing skilled labor shortage.
- Vertical integration resolves construction tolerances and connectivity issues, simplifying scheduling and sequencing for tighter timelines. The result is a speedier and more efficient production and assembly process ideally suited to meet the construction challenges of our time.
The Future of Affordable Multifamily
At a time when economic pressures and logistical complexities make high-quality multifamily construction arguably more challenging than ever before, Ginosko Modular is not just delivering affordable, accessible, and appealing modular housing solutions that decrease the
cost burden for renters—the company is simultaneously addressing a persistent affordable housing shortage and providing a template for success with the potential to shape the future of multifamily construction.