To tackle the U.S. shortage of affordable homes, Ron Carson believes the solution is set in concrete, literally. He says it takes a combination of financers, builders and civic liaisons, and he’s confident he’s found that mix.
Carson, vice president of investment fund GLH Capital and a Cleveland resident, is helping launch 30 affordably priced concrete homes in the Cleveland suburbs, a first step toward a goal of 2,000 homes and eventually nationwide expansion.
He’s partnering with Florida-based Baya Build, a builder that’s developed a product for resilient, environmentally friendly and affordable concrete homes — using a rare process in the United States — along with local agent Mike Ferrante of Century 21 HomeStar and local lenders.
The initial development includes 15 homes in Warrensville Heights and 15 in neighboring Maple Heights priced at $275,000. Both towns sit about 14 miles outside Cleveland.
“Cleveland is ground zero as it pertains to the affordable home crisis,” said Carson in an interview with Homes.com.
The region is the starting point for Carson’s plan because of its abundance of empty lots — with many sold by the local land banks at low prices — and high home price increases, he said. Cleveland tied for fourth among all major metros in September for annual home price growth, according to Homes.com data.
The first round of homes come in two designs, one as a one-story ranch and another a ranch with a loft. Homes will be three bedrooms, two bathrooms and about 1,737 square feet.
Ferrante, the Century 21 agent, reviewed local sale prices of remodeled homes, adding in the consideration of new construction, to land on a sale price of $275,000. That's considerably less than September's national median price for a single-family home at $385,000, Homes.com data shows. The median home price in Warrensville Heights and Maple Heights is closer to $150,000, according to Homes.com, taking into account all the residential properties in the area.
Because the project is funded by GLH Capital’s investment funds, there are no federal restrictions on who can purchase the homes, though lenders still have criteria for some financing terms.
The process of building — or pouring — a concrete home
The homes can be sold at lower prices in large part because of Baya’s concrete system that cuts down on time, labor and materials — bringing down the cost of construction.
The basis of the method relies on proprietary concrete that underwent 1,500 variations before achieving the right recipe. Baya CEO James Casper’s goal was a stronger, more insulating and architecturally flexible concrete.
“We’re not giving the Coca-Cola secret ingredient, but I can tell you that 60% of it is recycled materials. We’re very green,” Casper, who started Baya almost nine years ago, told Homes.com.
According to Casper, the concrete is twice as strong as typical concrete. Concrete PSI, or pounds per square inch, measures its compressive strength, indicating how much pressure it can withstand before breaking.
Casper said his concrete has a high PSI while offering a high R-value, which indicates the insulating property of a material.
At an off-site factory, Baya pours the concrete into molds that can include architectural features such as brick or siding, varying in height and length. These are then assembled at the building location, such as Magna-Tiles, the magnetic children’s toy, said Casper. Inside, the walls are smooth without the need for drywall.
He said the shell of the home can be erected in three days with 50% typical labor, including the foundation, that is also pre-made. Most of the electrical and some plumbing can be embedded into the concrete, and cut-outs are made to fit the mechanicals.
A Baya house can withstand a Category 6 hurricane, tornadoes, fire and earthquakes, said Casper, and the company aims for homes to be valued at twice the price they’re sold for. Baya previously partnered with manufacturers to share factory space, but the firm will soon open its first solo plant in the Cleveland area with plans to expand to 10 within the next two years.
Despite concrete homes being a common form of homebuilding in Europe and South America, it's still a rarity in the United States. Only 5% of homes built in 2024 used concrete framing, compared to wood, according to the U.S. Census Bureau's construction survey. And most of those homes use insulated concrete forms, or ICFs, that consist of foam insulation sandwiching concrete panels rather than solely concrete.
Casper believes the lack of U.S. concrete construction is due to the high upfront costs of a concrete framing system, and the process competes with the wide availability of wood home building products.
"Any group of guys can go to Home Depot and buy wood and build a wood home, versus here, you actually have to have a setup factory, manufacturing and transportation. There's a lot more that goes into it," he said.
Homes include buyer assistance
Carson — a cousin of Cleveland Mayor Justin Bibb — oversees land bank acquisitions, funding and municipal approvals, while Baya focuses on construction. Meanwhile, partnerships with local banks aim to ease the path for buyers by offering assistance with closing costs and down payments.
Local lender Third Federal Savings & Loan is providing eligible buyers up to $15,000 toward closing costs, first-time buyer education and reduced mortgage rates.
Along with a more efficient homebuilding system, GLH saves by purchasing lots from the municipality's land bank — a program many cities offer that manages vacant lots and sells them for redevelopment. These government-owned plots in Warrensville Heights and Maple Heights also come with 100% property tax abatements for future homeowners. Buyers still pay taxes on the land, which Ferrante estimates at $40 to $50 per month.
Lot reservations and presales are underway, represented by Ferrante. Carson expects construction to begin in January.
Carson said he has received inquiries from Akron, Canton, Barberton, Youngstown and cities even outside Ohio.
“Our model here at GLH to do well by doing good, at a volume and at a scale, is where our pennies will make dollars,” said Carson.