ANNOUNCER: BRICK BY BRICK IS MADE POSSIBLE THANKS TO LEADING SUPPORT FROM: AND MANY MORE.

WE COULDN'T DO THIS WORK WITHOUT YOU.

THANK YOU.

THOMPSON: AS RENTS CONTINUE TO RISE IN SOUTHWEST OHIO, THE CHALLENGE TO FIND OR CREATE MORE BROADLY AFFORDABLE HOUSING OPTIONS IN OUR REGION REMAINS A FOCAL POINT.

SO FAR THIS SEASON, WE'VE COVERED A NUMBER OF HOUSING SOLUTIONS, FROM ZONING REFORMS TO THE CONVERSION OF OLD BUILDINGS AND THE CONSTRUCTION OF NEW ONES.

TODAY, WE ADD THREE MORE POTENTIAL SOLUTIONS TO THE MIX.

PETERSON: AND SO ADUS ARE KIND OF AN INTERESTING REGULATORY INNOVATION OR INTERVENTION THAT ALLOWS FOR THE PRODUCTION OF LOW COST, MARKET RATE HOUSING.

THOMPSON: YOU'VE PROBABLY HEARD OF THEM, GRANNY FLATS, MOTHER-IN-LAW APARTMENTS, CARRIAGE HOUSES, OR THEIR MORE OFFICIAL NAME ACCESSORY DWELLING UNITS, ADUS.

REGARDLESS OF WHAT YOU CALL THEM, THEY MAY BE A GOOD WAY TO ADD MORE HOUSING TO NEIGHBORHOODS WHILE ALSO BENEFITING HOMEOWNERS, PLUS.

WHITLEY: I CAN BUILD ANYTHING YOU WANT OUT OF A SHIPPING CONTAINER.

THOMPSON: LARGE CONTAINERS LIKE THESE ARE NOT JUST MEANT FOR CARRYING FREIGHT ACROSS THE COUNTRY ANYMORE.

INNOVATORS ARE PUTTING THEM TO WORK, CREATING A NEW HOUSING OPTION.

WE'LL LOOK INSIDE THIS NEW APPROACH AND EXPLORE THE ROLE IT COULD PLAY IN SERVING OUR HOUSING NEEDS.

AND WE'RE HEADED TO THE FACTORY.

HOW MANY HOMES ARE IN HERE?

BARNEY: WE'RE ABOUT ANYWHERE FROM 25 TO 30 MODULES IN HERE AT ONE TIME.

THOMPSON: BRICK BY BRICK LOOKS AT THE PRACTICE OF MODULAR HOME CONSTRUCTION, WHICH HAS BEEN AROUND FOR DECADES, AND COMPARE IT AGAINST TRADITIONAL STICK BUILDS.

IT'S A POTPOURRI OF POSSIBILITIES TODAY, SO LET'S GET INTO IT.

THIS IS BRICK BY BRICK, SOLUTIONS FOR A THRIVING COMMUNITY.

HELLO AND WELCOME TO BRICK BY BRICK, SOLUTIONS FOR A THRIVING COMMUNITY WHERE WE HIGHLIGHT RESPONSES TO SOCIAL CHALLENGES WE'RE FACING IN OUR TRI STATE REGION.

WE'RE SO HAPPY THAT YOU'RE THINKING ABOUT SOLUTIONS TOO.

I'M YOUR HOST, ANN THOMPSON.

SOUTHWEST OHIO AND NORTHERN KENTUCKY ARE GETTING BIGGER, EXPECTED TO GROW BY MORE THAN A HALF MILLION PEOPLE IN THE NEXT 25 YEARS.

AND WE NEED MORE HOUSING OF MANY DIFFERENT VARIETIES TO MATCH UP WITH NEEDS ALL ACROSS INCOME LEVELS.

WHILE TODAY'S GROUP OF SOLUTIONS CAN HELP BOTH RENTERS AND OWNERS, THE POINT IS THAT ANY NEW OR TRADITIONAL OPTION SHOULD BE ON THE TABLE WHEN IT COMES TO STABILIZING COSTS AND INCREASING THE HOUSING SUPPLY.

LET'S BEGIN WITH A SOLUTION THAT ALLOWS HOMEOWNERS TO JUMP INTO THE ROLE OF DEVELOPER AND HAVE A DIRECT IMPACT ON THE HOUSING SUPPLY AT THE NEIGHBORHOOD LEVEL.

THAT'S THE SOLUTION OF ACCESSORY DWELLING UNITS, OTHERWISE KNOWN AS ADUS, OR AS WE LIKE TO CALL THEM, BACKYARD COTTAGES.

BUT WHAT ARE THEY EXACTLY?

TO HELP WITH THAT, WE TURN TO THE MAN KNOWN AS MR. ADU, THE CREATOR OF THE WEBSITE BUILDINGANADU.COM AND AN ADU RESOURCE GUIDE, KOL PETERSON.

PETERSON: ADUS ARE SECONDARY HOUSING UNITS ON SINGLE FAMILY LOTS, GENERALLY SPEAKING, ALTHOUGH THAT DEFINITION IS MORPHING WITH TIME.

BUT IT'S DEFINITELY, IT'S TYPICALLY LIKE A DIMINUTIVE SECONDARY DWELLING UNIT THAT HAS A KITCHEN, LIVING SPACE, SLEEPING SPACE, SANITATION SPACE THAT'S ENTIRELY SEPARATE FROM THE PRIMARY HOUSE.

MOST OF THEM ARE DETACHED, NEW CONSTRUCTION.

BUT THERE'S A WHOLE RANGE OF DIFFERENT ADU STRUCTURAL TYPES THAT CAN BE BUILT, FOR EXAMPLE, GARAGE CONVERSIONS OR BASEMENT CONVERSIONS, OR ATTACHED BUMPOUT ADUS OR ATTIC CONVERSIONS OR OTHER TYPES OF ADUS.

THOMPSON: THEY CAN RANGE IN SIZE ON THE UPPER END, BUT TYPICALLY ARE AT LEAST 400 SQUARE FEET, HAVE THEIR OWN BATHROOMS AND KITCHENS, AS WELL AS A SEPARATE ENTRANCE.

PETERSON IS BASED IN PORTLAND, OREGON, WHERE HE LIVES IN A BACKYARD COTTAGE HIMSELF.

PORTLAND WAS ACTUALLY AN EARLY ADOPTER OF THIS HOUSING OPTION, ALONG WITH PLACES LIKE CALIFORNIA.

BASED ON A STUDY IN 2023, AN ESTIMATED 1 IN 5 NEWLY BUILT HOUSING UNITS IN CALIFORNIA IS AN ADU.

IN KOL'S CITY, PORTLAND, RESIDENTS BUILD ABOUT 600 ADU UNITS EVERY YEAR.

BECAUSE THE HOUSING SUPPLY AND EVEN AFFORDABLE RENTAL OPTIONS ARE LIMITED, CREATING AN ADU ON A PROPERTY CAN PROVIDE MORE FLEXIBLE OPTIONS FOR FAMILIES OF MANY TYPES.

PETERSON: SO THEY TEND TO BE BUILT BY AVERAGE HOMEOWNERS WHO HAVE A PROPERTY AND EITHER WANT TO CREATE A PASSIVE RENTAL INCOME STREAM OR PROVIDE ADDITIONAL HOUSING FOR A MULTI-GENERATIONAL FAMILY PURPOSE.

AND IT'S OFTENTIMES A COMBINATION OF THOSE TWO THINGS.

THOMPSON: ACROSS THE COUNTRY, BACKYARD COTTAGES ARE ACTUALLY ILLEGAL IN MOST CITIES DUE TO ZONING RESTRICTIONS.

WHILE OHIO DOES NOT GREEN LIGHT THEM AT THE STATE LEVEL, CITIES AND COUNTIES CONTROL IT LOCALLY.

IN FACT, CINCINNATI BECAME THE FIRST MAJOR OHIO CITY TO LEGALIZE ADUS BACK IN 2023 WITH A PROPOSAL FROM COUNCIL MEMBER MARK JEFFREYS.

JEFFREYS: THIS WILL MEAN MORE HOUSING.

IT WILL MEAN MORE FAMILIES ABLE TO LIVE TOGETHER.

IT WILL MEAN MORE FOLKS WHO ARE DISABLED BE ABLE TO LIVE INDEPENDENTLY NEAR THEIR HOUSES OR THEIR HOMES.

ULTIMATELY, IT MEANS STRONGER FAMILIES AND STRONGER NEIGHBORHOODS.

THOMPSON: THERE ARE RULES ON HOW BIG IT CAN BE, AND YOU CAN FIND THOSE ON OUR WEBSITE AT CETCONNECT.ORG AND THINKTV.ORG.

JEFFREYS TOLD COUNCIL AT THE TIME THAT HE PROPOSED THE IDEA FOR THREE REASONS: THE NEED FOR MORE HOUSING, THE ABILITY TO AGE IN PLACE, AND AS A WAY TO INCREASE HOMEOWNER WEALTH.

BRICK BY BRICK LATEST CHECK WITH THE CITY SHOWED THAT ALTHOUGH ADUS ARE NOW LEGAL, THEY ARE STILL ONLY SLOWLY GROWING IN ADOPTION HERE LOCALLY.

LESS THAN TEN PROJECTS HAVE BEEN SUBMITTED SO FAR.

WE CHECKED WITH SURROUNDING TOWNSHIPS IN SOUTHWEST OHIO AS WELL, AND MOST STILL DON'T ALLOW ADUS.

IF THEY DO, AS IN THE CITY OF DAYTON, THEIR USE IS STILL CONDITIONAL, MEANING A MORE ARDUOUS APPROVAL PROCESS, RATHER THAN ALLOWED BY RIGHT AS IN CINCINNATI.

WE WERE WONDERING ABOUT HOW THIS TYPE OF HOUSING MIGHT TAKE SHAPE FOR OUR NEIGHBORS.

SO BRICK BY BRICK'S EMIKO MOORE CONNECTED WITH A FEW CINCINNATI RESIDENTS WHO HAVE ALREADY CREATED BACKYARD COTTAGES.

AS SHE SHOWS US, EACH HOMEOWNER HAD A DIFFERENT USE FOR BUILDING THEIR ADU.

MOORE: GERALD BATES CONSIDERED DOWNSIZING FROM HIS STATELY VICTORIAN HOME IN THE WEST END, BUT SAW THE ADVANTAGES OF RENTING THE CARRIAGE HOUSE IN HIS BACK YARD.

BATES: WELL, HAVING RENTERS HELPS TO OFFSET THE COST OF OWNING THE BUILDING.

EVEN THOUGH, EVEN IF YOU DON'T HAVE A MORTGAGE, YOU STILL HAVE BASIC MAINTENANCE, UPKEEP, UTILITIES.

MOORE: SANDY HAMILTON FROM NORTHSIDE ENVISIONED USING THE SECOND LOT SHE OWNED FOR A BACKYARD COTTAGE FOR HER 90 YEAR OLD MOTHER, WHOSE MOBILITY BECAME MORE LIMITED.

HAMILTON: WHEN SHE BECAME DEPENDENT ON A WALKER, THEN THE STEPS BECAME EVEN MORE OF A PROBLEM BECAUSE TO GET IN AND OUT OF HER HOUSE SHE HAD TO GO DOWN A FLIGHT OF STEPS.

MOORE: BUT BUILDING AN ACCESSORY DWELLING UNIT, KNOWN AS AN ADU, WASN'T WITHOUT ITS CHALLENGES.

BATES RECALLS SOME BACK AND FORTH WITH THE CITY OVER THE DESIGN AND MATERIAL CHOICES.

BATES: I KIND OF OBJECTED, AND THEN I THOUGHT ABOUT IT AND I SAID, "YOU KNOW WHAT?

THAT'S FINE."

SO WE WENT AHEAD AND THAT'S THE TRADE OFF.

MOORE: WHILE HAMILTON HAD A SECOND LOT ON HER PROPERTY, SHE FACED ANOTHER HURDLE.

AT THE TIME, ADUS WEREN'T LEGAL IN CINCINNATI.

IT TOOK A FULL YEAR TO GET THE NECESSARY PERMISSIONS TO BUILD THE 480 SQUARE FOOT COTTAGE.

HAMILTON: IT WAS VERY CHALLENGING.

PROBABLY THE HARDEST THING WAS PARKING.

THEY WANTED US TO BRING A DRIVEWAY IN FROM HAMILTON AVENUE.

IN THAT MY MOM NEVER DROVE IN HER LIFE.

MOORE: SIX MONTHS AFTER FINALLY SECURING THE PERMITS, HAMILTON BUILT THE ADU.

AND SINCE SHE OWNED THE LOT, THE COST WAS AROUND $100 PER SQUARE FOOT.

HAMILTON: SO THIS IS HER DINING ROOM KITCHEN AREA.

THE TABLE IS ON WHEELS, SO IT COULD BE EASILY MOVED AROUND DEPENDING UPON WHAT SHE WAS DOING.

EVERYTHING WAS WITHIN HER REACH.

INSTEAD OF A TRADITIONAL BATHROOM, WE HAVE A WET ROOM.

AND THEN THERE WAS NEVER A PROBLEM WITH HAVING TO CLIMB OVER A BATHTUB.

MOORE: BATES INVESTED A FEW HUNDRED THOUSAND TO BUILD HIS CARRIAGE HOUSE, WHICH ULTIMATELY ADDED ONE THIRD TO THE VALUE OF HIS PROPERTY.

BATES: IT HAS AN OPEN FLOOR PLAN, SO AN OPEN LIVING DINING KITCHEN AREA, A BATH AND A BEDROOM ON ONE LEVEL AND THEN ON THE LOFT LEVEL IT HAS ANOTHER OPEN SPACE AND A BATHROOM.

MOORE: IN 2034, THERE WILL BE MORE PEOPLE OVER 65 THAN UNDER 18.

ACCORDING TO THE AARP, OVER 70% OF OLDER ADULTS WANT TO AGE IN THEIR HOME AND COMMUNITY, AND THE DEMAND FOR SAFE AND ACCESSIBLE SENIOR HOUSING IS GROWING RAPIDLY.

BATES: NOT ONLY DID IT PROVIDE INCOME, BUT IT PROVIDED SORT OF SECURITY TO HAVE SOMEONE LIVING ON THE PROPERTY OTHER THAN YOURSELF.

IF YOU HAPPEN TO GO ON VACATION OR SOMETHING, IT'S NOT LIKE THE PROPERTY IS UNOCCUPIED.

MOORE: AND HAMILTON FOUND THE COST TO BUILD AT THE TIME VERY REASONABLE COMPARED TO A NURSING HOME.

HAMILTON: HAD SHE GONE THERE, HER ASSETS WOULD HAVE DIMINISHED VERY QUICKLY AND SHE WOULD HAVE BEEN ON MEDICAID.

ACTUALLY, I THINK SHE WAS VERY INDEPENDENT OVER HERE, AND I THINK SHE FELT SAFE.

SHE WAS AMONG HER FRIENDS, HER COMMUNITY, HER CHURCH.

SO IT WAS ABSOLUTELY THE PERFECT ANSWER TO HER SITUATION.

THOMPSON: BACK HERE IN THE STUDIO WITH MULTIMEDIA JOURNALIST EMIKO MOORE.

THANKS FOR THAT GLIMPSE INTO HOW ADUS ARE BEING USED LOCALLY.

MOORE: YES, AND AS WE'VE BEEN REPORTING, OUR HOUSING NEEDS EVOLVE OVER TIME.

AND SO IT'S NICE TO SEE HOW GERALD BATES AND SANDY HAMILTON WERE ABLE TO CREATE A SOLUTION RIGHT IN THEIR OWN BACKYARD.

THOMPSON: AND YOU PROVIDED TWO GOOD EXAMPLES SHOWING THE FLEXIBILITY OF AN ADU.

MOORE: THAT'S RIGHT, THAT'S ONE OF THE ADVANTAGES OF A BACKYARD COTTAGE, ACTUALLY.

FOR EXAMPLE, SANDY'S MOTHER HAD HER FRIENDS WHO COULD LITERALLY RIDE THEIR MOTORIZED SCOOTERS TO COME INTO THE LIVING ROOM AND VISIT WITH HER BECAUSE SANDY HAD PUT IN A ZERO STEP ENTRY.

AND FOR SENIORS, HAVING FRIENDS AND FAMILY NEARBY HELPS KEEP THEM SOCIALLY CONNECTED, WHICH IS SO IMPORTANT FOR THEM AND THEIR QUALITY OF LIFE.

IN GERALD BATES'S CASE, HE HAD ADDITIONAL SECURITY BECAUSE HE HAD MORE PEOPLE ON THE PROPERTY, WHICH THEY NATURALLY KEEP OUT AN EYE FOR EACH OTHER.

PLUS YOU HAVE A HOME THAT'S MORE AFFORDABLE FOR THE RENTER AND THE OWNER.

THOMPSON: YEAH.

GOOD POINTS.

AND IF SOMEBODY IS INTERESTED IN BUILDING AN ADU, AS WE MENTIONED, THERE ARE ALL KINDS OF RULES AND REGULATIONS AND THEY VARY DEPENDING UPON WHERE YOU LIVE.

SO IT'S BEST TO CHECK WITH YOUR PERMITTING OFFICE.

MOORE: YES, BE SURE TO DO THAT BECAUSE THEY ARE VERY AREA SPECIFIC.

THOMPSON: MULTIMEDIA JOURNALIST EMIKO MOORE, THANKS FOR THAT.

MOORE: THANK YOU.

THOMPSON: OVERALL, MANY SEE THIS SOLUTION AS HELPING TO FILL A GAP IN HOUSING PRODUCTION, BUT NOT AS A CURE ALL TO ALL THE HOUSING SHORTAGE.

WHICH MAKES SENSE BECAUSE IT'S HARD TO IMAGINE ENOUGH ADUS BEING CREATED HERE TO MATCH CALIFORNIA OR OREGON'S NUMBERS IN THE NEAR FUTURE.

THE FIRST LIMITING FACTOR IS THAT CURRENTLY THE RULE IN CINCINNATI REQUIRES THE OWNER OF THE PROPERTY TO LIVE ON SITE OR DESIGNATE A RESPONSIBLE PARTY WHO DOES.

THIS IS TO AVOID THE TYPE OF NEGLECTFUL LANDLORDS THAT MANY PEOPLE SEE AS AN ISSUE IN OUR COMMUNITIES ALREADY, WHICH SEEMS REASONABLE.

HOWEVER, AS YOU LOOK AROUND THE US, IT APPEARS THIS TYPE OF RULE CAN ACTUALLY STUNT THE ADOPTION OF ADUS IN CITIES.

PETERSON: IT'S ELIMINATING LIKE HALF OF THE EFFECTIVE, LIKE, ECONOMIC UTILITY OF A PROPERTY BY PUTTING THAT PROHIBITION EFFECT.

I WOULDN'T BUILD A LEGAL PERMITTED ADU IF THERE WAS A PROVISION THAT SAID I HAD TO LIVE THERE INDEFINITELY, THAT WOULD FEEL LIKE SHACKLES.

I WOULD BUILD ANYTHING OTHER THAN AN ADU IF I HAD THAT PROVISION.

THOMPSON: KOL SAYS THAT'S BECAUSE THE FLEXIBILITY OF ADUS IS THEIR TRUE POWER.

NOT EVERYBODY WANTS TO LIVE ON THE PROPERTY.

THEY MIGHT WANT TO WINTER IN ANOTHER PART OF THE COUNTRY, OR IF THEY MOVE PERMANENTLY, THEY MIGHT WANT TO COLLECT RENT FROM BOTH HOUSING UNITS.

PETERSON SAYS BACKYARD COTTAGES CAN CREATE FINANCIAL FREEDOM IN THAT WAY.

HOMEOWNERS CAN EVEN MOVE INTO THE SMALL HOME AND RENT OUT THE BIG ONE TO COVER THE MORTGAGE.

MARK JEFFREYS, WHO ORIGINALLY INCLUDED THE RESPONSIBLE PARTY CLAUSE IN THE 2023 CINCINNATI ORDINANCE DUE TO COMMUNITY CONCERNS, SAYS AS THE CITY MONITORS ADU ACTIVITY, IT COULD REVISIT AND READJUST IF NEEDED.

THE OTHER KEY LIMITATION WORTH INCLUDING IS THE EXPENSE.

WHILE A CONVERTED BASEMENT ADU MIGHT BE A CHEAPER OPTION.

THERE'S A WIDE RANGE OF COSTS TO CREATE THOSE UNITS, DEPENDING UPON WHERE YOU LIVE AND THE TYPE OF UNIT.

ACROSS THE COUNTRY, FOLKS TEND TO SPEND BETWEEN 60 AND 285,000, WITH AN AVERAGE AROUND 180,000.

AS AN INVESTMENT, ADUS DO TEND TO BOOST PROPERTY VALUES, THOUGH.

THINK OF IT LIKE ADDING A SWIMMING POOL.

IF YOU COULD COLLECT RENT ON THAT POOL.

IN 2021 THE NATIONAL ASSOCIATION OF REALTORS SAID THE VALUE INCREASE COULD BE EQUAL TO 35%, SO A NICE UPTICK.

MOVING FORWARD, BRICK BY BRICK WILL BE MONITORING THE IMPACT OF THIS TYPE OF DWELLING LOCALLY TO SEE IF ADOPTION GROWS, LIKE ON THE WEST COAST.

WE ARE USED TO SEEING SHIPPING CONTAINERS AS A MODE TO TRANSPORT GOODS BY LAND OR SEA.

WE SEE THEM ON THE BACKS OF TRUCKS, TRAINS AND THOSE MASSIVE CONTAINER SHIPS.

THEY ARE ALSO USED AS STORAGE, BUT AS BRICK BY BRICK'S HERNZ LAGUERRE, JR. SHOWS US, THEY COULD ALSO BE USED AS THE NEXT MEANS FOR BUILDING AFFORDABLE HOUSING.

LAGUERRE: TODAY WE'RE IN BROWN COUNTY, OHIO, ALMOST AN HOUR EAST OF CINCINNATI.

I MET WITH JIM MARTIN, RETIRED FIREFIGHTER AND CINCINNATI NATIVE, AND I ASKED HIM WHY HE'S MAKING THIS MOVE EASTWARD.

MARTIN: WELL, BROWN COUNTY WAS GOOD TO BUILD A CONTAINER BECAUSE YOU CAN BUILD A CONTAINER HOME IN BROWN COUNTY.

YOU CAN'T IN CLERMONT COUNTY OR HAMILTON COUNTY.

LAGUERRE: OHIO IN GENERAL HAS RESTRICTIONS AND REQUIREMENTS FOR BUILDING CONTAINER HOMES.

ACCORDING TO LOCAL CONTAINER HOME BUSINESS HOUSE IN A BOX, IN COMPARISON TO OTHER COUNTIES IN SOUTHWEST OHIO, BROWN COUNTY WAS THE EASIEST TO WORK WITH WHEN BUILDING A CONTAINER HOME.

DID YOU HAVE ANY HESITATIONS?

DO YOU HAVE ANY CONCERNS ABOUT LIVING IN A CONTAINER HOME?

MARTIN: NO HESITATION.

CONCERNS?

YES, OF COURSE.

I WOULD HAVE CONCERNS IF I WAS BUILDING A REGULAR STICK BUILT HOME.

LAGUERRE: THIS PAST FALL HOUSE IN A BOX FOUNDER AND CEO SANDRA WHITLEY PUT THOSE CONCERNS TO REST.

SHE GAVE US A TOUR OF HER MODEL CONTAINER HOME IN LEBANON, OHIO.

WHITLEY: STEP INSIDE AND SEE WHAT A FINISHED CONTAINER ACTUALLY LOOKS LIKE AND LOOK AT ALL THE SPACE IT ACTUALLY GIVES YOU.

LAGUERRE: THIS SINGLE CONTAINER IS A COUPLE OF FEET LONGER THAN TWO JEEP WAGONEERS PARKED FROM TAILLIGHT TO HEADLIGHT, AND IS ALMOST THE HEIGHT OF AN NBA REGULATED HOOP.

I DIDN'T THINK IT COULD FIT THE ESSENTIALS OF A HOME, BUT SANDRA PROVED ME WRONG.

WHITLEY: WE'VE GOT FULL SIZE EVERYTHING IN HERE.

AS YOU WALK IN, YOU'RE GOING TO FIRST COME INTO YOUR LIVING ROOM.

THE FIRST FINISH WE DID IS A SHIPLAP FINISH.

YOU HAVE A FRONT ENTRANCE AND A REAR ENTRANCE.

AND AS YOU WALK THROUGH, YOU'LL COME INTO YOUR KITCHEN, WHICH COMES WITH FULL SIZE APPLIANCES.

YOU HAVE POCKET DOORS.

NEXT ROOM YOU'LL COME INTO YOU FULL SIZE BATHROOM.

BEHIND THAT YOU HAVE YOUR STACKABLE WASHER AND DRYER, OR YOU CAN PUT THEM SIDE BY SIDE.

AND AS YOU AS YOU WALK THROUGH INTO THE BEDROOM, YOU'LL SEE THAT IT FITS A QUEEN SIZE BED.

LAGUERRE: WITH THE CONTAINER HOME THERE IS ALSO AN OPPORTUNITY FOR SOME MAJOR COST SAVINGS.

WHITLEY: WE ARE AT THE WARREN COUNTY CAREER CENTER.

THE AVERAGE HOME PRICE IN THIS COUNTY IS OVER $400,000.

RENT IS OVER $2,000.

THAT'S THE AVERAGE.

FOR THIS, IF, SAY, IT WAS A RENTAL, 600-750 BUCKS, BECAUSE THE COST OF THIS UNIT ALONE IS ONLY $45,000.

LAGUERRE: ACCORDING TO ONLINE BLOG SITE LIVINGINACONTAINER.COM, THE AVERAGE COST TO BUILD A CONTAINER HOME IS $40-$60,000, BUT THEY CAN GO FOR AS LITTLE AS $25,000, WITH AN AVERAGE MONTHLY MAINTENANCE COST OF $100.

UNLIKE A MODULAR HOME, YOU CAN MOVE A CONTAINER HOME TO A DIFFERENT LOCATION AT SOME EXPENSE.

JIM AND HIS WIFE ARE CONSTRUCTING THEIR HOME WITH SIX CONTAINERS.

THEY'RE GOING TO GO THROUGH SANDRA'S HOUSE IN A BOX BUSINESS TO DO SO.

TELL ME A LITTLE BIT OF HOW THIS IS GOING TO LAY OUT.

MARTIN: THIS RIGHT HERE IS 16 FEET WIDE.

SO THESE ARE -- THIS IS TWO 40 FOOT CONTAINERS GOING THIS WAY.

LAGUERRE: OKAY.

MARTIN: SO THIS IS THE KITCHEN AREA.

THIS IS TWO 20 FOOT CONTAINERS GOING THIS WAY.

AND THEN THIS OTHER SIDE RIGHT HERE THERE IS -- THE OTHER IS THE OTHER TWO 40 FOOT CONTAINERS GOING LONGWAYS.

LAGUERRE: SO IT'S GOING TO BE IN A LETTER H?

MARTIN: CORRECT.

LAGUERRE: AND YOU MIGHT BE SURPRISED HOW MUCH THAT CONTAINS.

MARTIN: SO THE MASTER BEDROOM WILL BE OVER THERE.

THE LIVING ROOM WILL BE OVER HERE.

DINING ROOM, OFFICE.

IT'S THREE BEDROOM, TWO BATH.

IT'S ABOUT 1600 SQUARE FEET OF LIVING SPACE, ACTUAL LIVING SPACE.

LAGUERRE: WHAT ARE SOME OF THE BENEFITS OF HAVING A CONTAINER HOME?

MARTIN: THE BENEFITS ARE LOW COST, SPEED OF CONSTRUCTION.

AND IT'S GOING TO ALLOW US TO HAVE, YOU KNOW, THE THINGS THAT WE REALLY WANT, WHICH IS, YOU KNOW, LOWER RENT AND HIGHER LIVING.

LAGUERRE: WHAT WOULD YOU SAY A CONTAINER HOME HAS THAT A STICK BUILT DOESN'T HAVE?

WHITLEY: VERSATILITY.

SO I CAN I CAN TAKE THIS 40 FOOT CONTAINER, I CAN TAKE ANOTHER 40 FOOT CONTAINER AND PUT IT PERPENDICULAR TO IT OR PARALLEL WITH IT, EITHER WAY, AND I CAN RUN THEM, I CAN JUST KEEP GOING IN ALL DIFFERENT DIRECTIONS.

THE ONLY THING I NEED IS A SUPPORT UNDER EACH CORNER.

WHEREAS A STICK BUILT HOME, I'M GOING TO WANT TO BUILD WEIRD STUFF, I GOTTA HAVE A LOT OF SUPPORT ON THAT BECAUSE WOOD CAN ONLY GO A CERTAIN DIMENSION BEFORE IT STARTS TO BOW.

LAGUERRE: DO YOU SEE THIS BECOMING A TREND?

MARTIN: I FEEL LIKE CONTAINER HOMES ARE WHERE BARNDOMINIUMS WERE TEN YEARS AGO.

SO I FEEL LIKE IT'S GOING TO BE A GROWING TREND ONCE PEOPLE SEE WHAT THEY CAN GET FOR THEIR MONEY.

THERE'S NOT A LOT OF THEM AROUND, SO YOU GOT TO BE ABLE TO THINK A LITTLE BIT OUTSIDE THE BOX.

THOMPSON: BACK HERE IN THE STUDIO, JOINED BY HERNZ LAGUERRE, JR., AS SANDRA SAYS, HER MAIN HURDLE TO BUILDING CONTAINER HOMES WAS GOVERNMENT.

HOW SO?

LAGUERRE: YEAH.

YOU KNOW, I THINK JIM SAYS IT BEST IN THE PACKAGE.

HE SAID HE HAD NO HESITATION TO GETTING A CONTAINER HOME, BUT HE DID HAVE HIS CONCERNS, AS ANYONE WOULD, EVEN WITH A TRADITIONAL STICK BUILT HOME.

THE ONE DIFFERENCE, THOUGH, IS THAT CONTAINER HOMES ARE VERY MUCH NEW.

IT'S NOT LIKE HE CAN GO OUT TO A GROUP OF PEOPLE AND ASK FOR THEIR FEEDBACK.

AND I THINK A LOT OF AREAS ARE DEALING WITH THE SAME ISSUE.

THEY DON'T KNOW HOW TO TRULY TACKLE THE WHOLE CONTAINER HOMES DEAL.

SO THAT'S WHY CITIES ALL ACROSS THE COUNTRY ARE HAVING PEOPLE FILL OUT APPLICATIONS IN ORDER TO SURPASS SOME OF THE ZONING RESTRICTIONS.

THOMPSON: AND THEY'RE STILL TRYING TO FIGURE OUT THEIR BUILDING CODES.

LAGUERRE: VERY MUCH SO.

EVEN CITY MANAGER OF DAYTON, SHELLY DICKSTEIN, SHE TOLD US A WHILE BACK THAT THE STATE OF OHIO'S BUILDING CODES HAVEN'T QUITE CAUGHT UP WITH CONTAINER HOMES.

BUT SHE BELIEVES ONCE THEY DO, CONTAINER HOMES WILL FLOURISH IN THE STATE OF OHIO.

THOMPSON: SO IT SOUNDS LIKE THIS POSSIBLE SOLUTION IS STILL EVOLVING.

LAGUERRE: FOR SURE.

THOMPSON: MULTIMEDIA JOURNALIST HERNZ LAGUERRE, JR., THANKS FOR THAT.

LAGUERRE: NO PROBLEM.

THOMPSON: FROM CONTAINER HOMES, WE PIVOT TO ANOTHER APPROACH TO NEW HOME CONSTRUCTION THAT ISN'T NEW BY ANY MEANS, BUT IS WORTH REVISITING AS WE THINK ABOUT HOW THINGS ARE BUILT AND HOW LONG THAT TAKES.

THAT APPROACH IS MODULAR CONSTRUCTION, NOT TO BE CONFUSED WITH MOBILE HOMES OR TRAILERS.

BUILT INSIDE A CLIMATE CONTROLLED FACTORY AND THEN TRUCKED TO A SITE IN SEGMENTS FOR ASSEMBLY, MODULAR HOME BUILDING HAS BEEN SLOW TO CATCH ON IN THE U.S.

IT MAKES UP LESS THAN 4% OF THE HOUSING STOCK HERE, COMPARED TO 15% IN JAPAN AND 45% IN SCANDINAVIA.

IS IT THE ANSWER TO INCREASE THE HOUSING SUPPLY HERE?

BRICK BY BRICK TRAVELED NORTH OF DAYTON TO FIND OUT.

UNIBILT IN VANDALIA IS THE LARGEST MODULAR HOME MANUFACTURER IN OHIO, SERVING FIVE STATES.

ON THIS DAY, THERE WERE MORE THAN TWO DOZEN HOMES INSIDE THIS 120,000 SQUARE FOOT FACTORY IN VARIOUS STAGES OF CONSTRUCTION.

WHEN PEOPLE TAKE TOURS OF THIS PLANT, WHAT ARE THEY MOST SURPRISED ABOUT?

BARNEY: YOU KNOW, WE'RE BUILDING IN A KIND OF A MORE OF A ASSEMBLY LINE PROCESS.

AND I THINK SOME PEOPLE COME WITH THE PERCEPTION, WE'VE GOT THIS BIG BUILDING.

WE'RE JUST, YOU KNOW, HAVE THE HOUSE SITTING IN ONE SPOT AND WE'RE, WE'RE JUST BUILDING IT RIGHT THERE.

THOMPSON: IN FACT, CRANES MOVED THE HOUSES FROM ONE STATION TO THE NEXT.

FOR EXAMPLE, AT ONE PLACE, WORKERS DO FRAMING, ANOTHER THEY DO PLUMBING, INSULATION, AND SO ON.

BARNEY: AND IF YOU LOOK, WE'RE KIND OF BUILDING A LITTLE BIT IN THE INSIDE OUT BECAUSE YOU GET YOUR DRYWALL ON THE OUTSIDE WALLS, THEN WE'RE GOING TO DO OUR ELECTRICAL AND THEN WE'RE GOING TO, YOU KNOW, ADD THE SUB SIDING.

THOMPSON: THE BLUEPRINTS VARY GREATLY.

SOME MODULAR HOMES CAN COST MORE THAN $1 MILLION AND INCLUDE EXTRAS INSTALLED ON SITE, LIKE CARVED HANDRAILS.

IT'S RARE THE HOMES DIP BELOW $300,000.

AS YOU CAN TELL BY THE PRICE RANGE, THESE MODULAR UNITS ARE NOT TRAILERS OR MOBILE HOMES, WHICH ARE DISTINGUISHED BY THE INDUSTRY TERM MANUFACTURED HOME.

BARNEY: THERE'S THIS PERCEPTION THAT MANUFACTURED MODULAR IS TREMENDOUSLY CHEAPER.

WE'RE USING THE SAME MATERIALS AS YOU WOULD IN A SITE BUILD.

WE BUILD VERY EFFICIENTLY, WE BUY OUR MATERIALS VERY EFFICIENTLY, BUT WE ALSO HAVE TO TRANSPORT THE MODULES TO THE SITE, CRANE THEM IN PLACE.

SO IF THERE'S A TRUE APPLES TO APPLES A LITTLE CHEAPER, NOT TREMENDOUSLY.

THOMPSON: BARNEY SAYS THE TRUE ADVANTAGE OF A MODULAR HOME IS THE MATERIALS AREN'T EXPOSED TO THE ELEMENTS, LIKE MOST HOUSES BEING BUILT.

BARNEY: YOU KNOW, WE ALWAYS SAY, YOU KNOW, DO YOU BUY A CAR?

DO THEY DUMP A PILE OF PARTS OUT IN YOUR DRIVEWAY AND THEY ASSEMBLE IT IN YOUR DRIVEWAY?

NO.

AND NOW WITH THE HOME YOU'RE BUYING THE MOST EXPENSIVE.

IT'S THE MOST EXPENSIVE PURCHASE YOU'LL MAKE IN YOUR LIFETIME.

AND WHEN THEY SITE BUILD, THEY DUMP A PILE OF LUMBER IN THE DRIVE IN THE MUD AND IT GETS RAINED ON AND SO FORTH.

THOMPSON: ANOTHER ADVANTAGE IS THEY CAN BE FINISHED A COUPLE OF MONTHS SOONER THAN HOUSES BUILT ON SITE.

THAT COULD COME IN HANDY FOR DISASTER RELIEF HOUSING, OR JUST GENERALLY SPEEDING UP THE NUMBER OF HOUSES COMING ONLINE.

EVEN THOUGH MODULAR SINGLE FAMILY CONSTRUCTION REMAINS FLAT, MODULAR MULTIFAMILY CONSTRUCTION IS PICKING UP.

A FEW MONTHS AGO, DAYTON CITY MANAGER SHELLEY DICKSTEIN TOLD BRICK BY BRICK SHE SAW A PRESENTATION FOR A COLUMBUS MODULAR PROJECT.

DICKSTEIN: AND THEY ARE CREATING VERY LARGE APARTMENT COMPLEXES WITH THEIR MODULAR, YOU KNOW, JUST BY BRINGING IN THE BOXES AND ADHERING AND AFFIXING THE BOXES AND ALL OF THAT.

THOMPSON: LAST YEAR, A DIFFERENT COMPANY, APARTMENT MANAGER GREYSTAR, BOUGHT A PENNSYLVANIA FACTORY TO BUILD MODULAR APARTMENT BUILDINGS AND LOOKS TO FINISH THEM IN 40-50% LESS TIME THAN TRADITIONAL BUILDS.

AND THERE ARE OTHER EXAMPLES.

THE GLOBAL MODULAR HOUSING MARKET IS EXPECTED TO INCREASE BY 40% OVER THE NEXT FIVE YEARS.

CAN IT INCREASE THE HOUSING SUPPLY HERE IN SOUTHWEST OHIO?

GROUNDBREAKING COULD HAPPEN THIS SPRING IN CINCINNATI'S EVANSTON NEIGHBORHOOD, WHERE DEVELOPER TAMARA SULLIVAN WILL PUT A MODULAR DUPLEX ON THIS VACANT URBAN LOT.

HER COMPANY, INNOVALAB OHIO, BOUGHT IT FROM THE PORT.

IT USES CONVENTIONAL FINANCING.

SULLIVAN: IT'S GOING TO BE A MARKET RATE HOUSE.

WILL PROBABLY GO ON THE MARKET BETWEEN 350 AND 375.

THAT STILL SOUNDS LIKE AN AWFUL LOT FOR A HOME, BUT IT'S A 1600 SQUARE FOOT HOME THAT'S GOT THREE BEDROOMS, TWO AND A HALF BATHS.

THE COST TO BUILD IS LOWER.

THE SPEED TO GET THEM TO THE MARKET IS MUCH FASTER.

THOMPSON: THERE ARE LIMITATIONS FOR MODULAR BUILDS, INCLUDING THERE AREN'T ENOUGH FACTORIES.

EXPERTS SAY THEY BUILT JUST 2.5% OF THE PROJECTED 800,000 NEW HOME STARTS LAST YEAR.

IN ADDITION, HUD CODE REQUIRES MODULAR TO BE BUILT TO STATE AND LOCAL STANDARDS.

THAT'S A PROBLEM BECAUSE IT'S HARD FOR MANUFACTURERS TO EXPAND TO NEIGHBORING STATES.

HOWEVER, THERE ARE A COUPLE OF BILLS MAKING THEIR WAY THROUGH CONGRESS THAT WOULD ALTER THESE RESTRICTIONS AND ENCOURAGE INNOVATION AND COMPETITION.

AND FINALLY, THE MANAGEMENT CONSULTING FIRM MCKINSEY AND COMPANY OFFERS UP WAYS THE INDUSTRY MUST REMODEL ITSELF, INCLUDING BETTER TRAINING ON SITE CREWS.

YOU CAN READ ABOUT THAT AND OTHER RECOMMENDATIONS AT CETCONNECT.ORG AND THINKTV.ORG.

OKAY, THIS WOULD TYPICALLY BE THE TIME IN THE SHOW WHERE I GO OVER MY OWN TAKEAWAYS OF THE SOLUTIONS WE'VE COVERED.

BUT BECAUSE WE'RE NEARING THE END OF OUR FIRST SEASON HERE ON BRICK BY BRICK, I WANTED TO BRING THE FULL TEAM BACK TOGETHER.

I'LL SHARE MORE IN A BIT ON THE EXCITING ROAD AHEAD FOR US, BUT FIRST WE WELCOME BACK TO THE STUDIO EMIKO MOORE AND HERNZ LAGUERRE, JR. LAGUERRE: HELLO.

MOORE: HELLO.

THOMPSON: WHAT DID YOU THINK OF THE EPISODE AND WERE THERE THINGS THAT STUCK OUT IN YOUR MIND?

MOORE: FOR ME, IT WAS REALLY EXCITING TO SEE THE HOUSING OPTIONS THAT ARE EMERGING.

FOR EXAMPLE, I UNDERSTAND THE CONTAINER HOMES ARE FIRE RESISTANT, PEST RESISTANT.

THOMPSON: STORM RESISTANT.

MOORE: YES.

AND THEY'RE AFFORDABLE.

LAGUERRE: IT ALMOST SOUNDS TOO GOOD TO BE TRUE.

I THINK WE WONDER, LIKE, OKAY, IF THEY DO ALL THESE THINGS, WHY AREN'T CITIES INVESTING INTO THEM MORE, RIGHT?

ALLOWING FOR THEM TO HAPPEN.

AND I REALIZED, I THINK WE ALL REALIZE IN THIS PROGRAM THAT THE ROAD TO AFFORDABLE HOUSING OFTEN HAS A LOT OF ROADBLOCKS.

AND FOR CONTAINER HOMES, IT'S ZONING.

AND, YOU KNOW, THAT'S WHY JIM HAD TO MOVE ALL THE WAY OUT TO BROWN COUNTY AND EAST, AN HOUR EAST OUT OF CINCINNATI IN ORDER TO ESTABLISH HIS CONTAINER HOME.

AND THEN I ALSO THINK ABOUT THE PEOPLE THAT THIS COULD HELP.

RIGHT?

THERE WAS A STAT BY HUD, THEY RELEASED IT.

AND IT SHOWED THAT 32,000 VETERANS EXPERIENCED HOMELESSNESS LAST YEAR.

AND WHEN SANDRA FIRST STARTED HOUSE IN A BOX, SHE HAD VETERANS IN MIND, OR TO HELP THEM ASSIMILATE BACK TO CIVILIAN LIFE.

RIGHT?

SO IF THE CONTAINER HOMES CAN HELP MITIGATE THAT NUMBER IN ANY WHICH WAY, I THINK IT'S WORTH IT FOR THESE CITIES TO RALLY, FIGURE OUT HOW TO MAKE THIS HAPPEN, HOW TO MAKE IT APPLY AND WORK WITH THE BUILDING CODES AND ZONING CODES AND MAKE IT A THING.

THOMPSON: I TOTALLY AGREE.

LAGUERRE: YEAH.

MOORE: MODULAR HOMES I ALSO LIKE BECAUSE THEY'RE FAST TO BUILD AND YOU HAVE A CONTROLLED ENVIRONMENT.

THOMPSON: YEAH.

AND I'M SURPRISED THAT THEY DON'T REALLY COST ANY LESS.

YOU CAN GET THEM BUILT FASTER IN TERMS OF SINGLE FAMILY HOMES.

FOR APARTMENTS A LITTLE BIT DIFFERENT OF A STORY.

THEY DO SAVE QUITE A BIT OF MONEY.

MOORE: AND YOU HAVE THE MATERIALS THAT ARE NOT LEFT OUTSIDE TO BE AFFECTED BY THE WEATHER, YOU KNOW, THEY'RE PROTECTED INSIDE.

LAGUERRE: ONE THING I THOUGHT WAS INTERESTING, I THOUGHT IT WAS CHEAPER TO MAKE MODULAR HOMES, BUT APPARENTLY THAT'S NOT THE CASE.

THOMPSON: YEAH, WELL, THE COST OF BUILDING MATERIALS HAS GONE UP REALLY WITH EVERYBODY.

SO, YOU KNOW, THEY'RE NOT EXCLUDED IN THAT.

ADUS ANOTHER GOOD SOLUTION.

MOORE: THAT'S RIGHT.

THEY'VE ALWAYS BEEN PART OF OUR HOUSING STOCK HISTORICALLY.

THINK ABOUT CARRIAGE HOUSES, GRANNY FLATS, BACKYARD COTTAGES.

WE'VE KNOWN ALL OF THIS.

THEY'RE JUST COMING BACK WITH ZONING.

WE'RE BEING REINTRODUCED TO THEM.

THOMPSON: THE CHALLENGE IS TO LET EVERYONE BENEFIT.

UC BERKELEY RESEARCHERS DID A STUDY IN CALIFORNIA LOOKING AT THE LOW TO MODERATE INCOME COMMUNITIES OF BLACK, INDIGENOUS AND PEOPLE OF COLOR TO SEE WHAT THE BARRIERS WERE.

AND NOT SURPRISINGLY, THE NUMBER ONE BARRIER WAS COST.

THEY DIDN'T HAVE ENOUGH EQUITY IN THEIR HOUSE TO BE ABLE TO BUILD ONE OF THESE.

SO THE RESEARCHERS MADE SOME RECOMMENDATIONS YOU CAN SEE ON THOSE ONLINE, BUT JUST SOME CHALLENGES TO WORK ON.

LAGUERRE: FOR SURE.

MOORE: ONE THING I WONDER IF THIS COULD WORK IF YOU WERE ABLE TO USE THE CONTAINER HOMES AS AN ADU FOR SOME OF THESE COMMUNITIES, BECAUSE IT'S MUCH LESS EXPENSIVE TO BUILD.

THOMPSON: THAT'S A GREAT IDEA.

LAGUERRE: GOOD IDEA, THINKING OUTSIDE THE BOX.

MOORE: THAT'S RIGHT.

THOMPSON: VERY GOOD, HERNZ.

WELL, WE'LL HAVE TO LEAVE IT RIGHT THERE FOR TIME, BECAUSE WE NEED TO SHARE NEWS ABOUT THE ROAD AHEAD FOR BRICK BY BRICK.

AS YOU AT HOME KNOW, THIS IS A MULTI-PLATFORM INITIATIVE, AND SO THERE ARE A NUMBER OF WAYS TO ACCESS THE SOLUTION STORIES WE SHARE, INCLUDING OUR REGULAR PODCAST, ONLINE ARTICLES AND VIDEOS, AS WELL AS THIS TV PROGRAM.

AS WE GO FORWARD, YOU CAN EXPECT CONTINUED COVERAGE OF HOUSING AND COMMUNITY DEVELOPMENT SOLUTIONS BECAUSE THAT'S OUR FOUNDATION.

HOWEVER, WE'VE HEARD AND RECOGNIZED THAT OUR COMMUNITIES ALSO FACE CHALLENGES BEYOND HOUSING.

TO THAT END, WE WILL BE EXPANDING OUR COVERAGE NEXT SEASON TO INCLUDE ANOTHER KEY SOCIAL CONCERN.

WE CAN'T GIVE ANYTHING AWAY JUST YET, BUT WE'LL BE ANNOUNCING THAT EXPANSION SOON, SO KEEP AN EYE OUT FOR THAT TOO.

WELL, AN EXCITING ROAD AHEAD, GUYS.

LAGUERRE: SEASON TWO, MORE SOLUTIONS.

MOORE: AND BUILDING THRIVING COMMUNITIES.

THOMPSON: SHOULD WE WRAP THIS UP?

LAGUERRE: SURE.

MOORE: YES.

THOMPSON: FOR BRICK BY BRICK, I'M ANN THOMPSON.

MOORE: AND I'M EMIKO MOORE.

LAGUERRE: AND I'M HERNZ LAGUERRE, JR. UNTIL NEXT TIME, TAKE CARE OF YOURSELVES AS WELL AS YOUR NEIGHBORS OUT THERE.

THOMPSON: WE'LL TALK AGAIN SOON.