This article originally appeared on Business Insider.
Booker Washington dreamed of building a community where ordinary people could afford to buy a home
Enter South Park Cottages, a village of 29 tiny homes just outside Atlanta opening in 2023 with prices from $190,000 to $230,000.
Compare that to the typical home sold in Atlanta, which Redfin found cost $431,250 as of February 2024.
The demand was clear: All 29 homes — one- and two-bedroom units ranging from 400 to 650 square feet — were sold out more than a year before they were even built and less than two months after they went on the market .
Washington, the 41-year-old owner and founder of micro-home builder Techie Homes, wanted to offer locals an alternative to renting or buying a home traditional single-family house.
“Affordable homeownership is a problem in Atlanta,” he said. “Our goal is to provide homes at a price point where mortgages are at or below the cost of renting a one-bedroom apartment.”
Located in College Park, Georgia, South Park Cottages has been so successful that Washington is building a second community, Union Park Cottages, nearby. Sales for its 26 homes will launch later this month.
South Park Cottages is also the first Black-owned micro-home community in the Atlanta area. Take a look around.
In 2022, after being rejected by investors and banks, Washington crowdsourced $2 million to build the complex.
The first sketch of the layout of South Park Cottages. Courtesy of Techie Homes via BI
Washington spread the word about his vision through word of mouth, gaining support from locals and Bianca Motley Broom, College Park’s mayor since 2020.
“Since no one believed in my dream, we went to the people to build that community,” Washington said. “I think there’s pent-up anger in urban areas about equity equality. Even if it’s a marginal return on investment, people want to be part of something good.”
Backers, who contributed amounts as low as $1,000, were promised a return on their investment once the homes were sold, Washington said.
The average rate of return was 12%, he added.
Techie Homes acquired the land for South Park Cottages for $150,000 in October 2021 and construction was completed 18 months later.
Homes under construction at South Park Cottages. Courtesy of Techie Homes via BI
Homes in the community range from 400 to 650 square feet and are two stories tall.
Some homes have one bedroom while others have two. All homes have one bathroom, a full kitchen, a living room and a laundry room.
The 29 homes at South Park Cottages went on pre-sale in January 2022 and sold out within 50 days of hitting the market. Homes were sold on a first-come, first-served basis, rather than through bidding wars.
The homes in the community have three different home floor plans.
A digital rendering of a house in South Park Cottages. Courtesy of Techie Homes via BI
One of the homes’ three layouts features a 10-foot ceiling, an open loft and floor-to-ceiling windows.
The units also feature “high-quality sound insulation” inside the walls to keep utility bills low, Washington said.
Washington wanted every home to be luxurious and comfortable.
Homes in South Park Cottages.
Courtesy of Techie Homes
Every home is equipped with smart technology, including programmable and self-learning thermostats, Bluetooth surround speakers and smart refrigerators, Washington said.
High ceilings and large windows provide plenty of natural light and a spacious feel.
“We can provide what are called ‘luxuries’ in other new construction,” he added.
The community sits on two and a half acres.
An aerial shot of South Park Cottages.
Courtesy of Techie Homes
South Park Cottages has some common amenities, including a quarter-mile path for bicyclists and pedestrians and a 2,000-square-foot fruit and vegetable garden.
Residents enjoy gathering around the fire pit.
The fire pit at South Park Cottages.
Courtesy of Techie Homes
“We don’t have a gym or clubhouse because of the density of the homes,” Washington said. “But we have a lot of common touch points and connections within the community.”
A homeowners association, or HOA, governs the community.
A walking trail at South Park Cottages.
Courtesy of Techie Homes
The homeowners association is made up of residents of different ages and walks of life.
“Our demographic ranges from 25 to 65, with incomes ranging from $50,000 to millionaires,” Washington said. “We have business owners, teachers and medical professionals. We also have people working in blue-collar jobs.”
It gives the community a more family-like feel than using a property management company, he added.
Residents of South Park Cottages have the opportunity to build equity.
Another corner of the South Park Cottages homes.
Courtesy of Techie Homes
Many small villages in the United States are geared toward renters, but the homes in South Park Cottages were available for purchase.
Homeowners could choose their preferred lender, Washington said, and the typical monthly mortgage payment is about $1,500.
According to Zillow, the average rent in Atlanta is $2,100 per month.
Washington said he believes South Park Cottages homeowners get a good value for their money.
The living room of a house in South Park Cottages.
Courtesy of Techie Homes
Home prices in Atlanta are constantly rising. Atlanta’s median home price of $431,250 is 12% higher than the same period in 2023, according to Redfin.
The high cost of housing in Atlanta is partly due to the influx of new residents attracted by the city’s booming job market and relatively low home prices compared to cities like California and New York.
Transplants often make housing more expensive, penalizing some locals.
Washington said the community made a profit for investors.
A night view of the homes of South Park Cottages.
Courtesy of Techie Homes
Washington declined to reveal how much it cost to build each home, but hinted that it was low enough to make a profit.
“We got a 30% to 40% margin between the sales price and the construction price,” he said, adding that the lower construction price is “good for the company and the homeowners.” because it allows Techie Homes to keep sales prices affordable.
According to Washington, the community is valued at $6.1 million.
The popularity of South Park Cottages inspired Washington to develop a new community in nearby Union City.
Washington, the founder and owner of Techie Homes.
Courtesy of Techie Homes
Union City, another Atlanta suburb, is just 15 minutes from South Park.
It will have 26 homes ranging from 625 to 675 square feet, priced from $230,000 to $250,000. All units will have two bedrooms and one bathroom, but some will be one-story ranch-style homes and others will be two-story residences.
Construction on the community, called Union Park Cottages, will begin March 26.
Union Park Cottages homes are scheduled to go on sale March 28 and currently have a waiting list of 3,000 people, Washington said.
Union Park Cottages residents will also have the opportunity to build equity through retail space in the community.
Washington on a construction site. Courtesy of Techie Homes via BI
A mixed-use retail space planned at Union Park Cottages will feature a café, lounge and coworking space.
According to Washington, community residents who are part of the homeowners association will own a 10 percent equity stake in the mall.
“Every month when the owner pays the lease, 10% of the proceeds will go to the homeowners association,” Washington said. “The association will distribute the proceeds from the mall to current registered homeowners.”