Three Distinct Market Segments
Our captive serves three uncorrelated housing markets, providing true risk distribution and diversification.
Market Overview
Each market segment has unique characteristics, risk profiles, and revenue models. This diversification is key to the captive's stability.
🎓 Student Housing
Target: Accessory Dwelling Units (ADUs) near university campuses
Key Characteristics:
- Short-term leases (9-12 months)
- High demand near ASU, U of A, NAU
- Standardized unit designs
- Rapid installation required
Primary Risks:
- Schedule delays (academic calendar pressure)
- Utility connection in dense areas
- Code compliance in residential zones
👨👩👧👦 Multi-Generational
Target: Rent-to-equity ADUs for family wealth transfer
Key Characteristics:
- Long-term financial instrument (10-15 years)
- Wheelchair accessible design
- Residence swap capability
- Interest accumulation on payments
Innovation: The Equity Instrument
Parents invest in an ADU. Children pay rent that accumulates with interest. Over time, equity transfers to the child. When parents age, they can swap residences, moving into the accessible ADU.
Primary Risks:
- Payment continuity (mitigated by family structure)
- Accessibility feature installation
- Long-term structural integrity
🌾 Rural Development
Target: Remote properties with utility infrastructure challenges
Key Characteristics:
- Off-grid or limited utility access
- Septic system installation
- Well water or cistern systems
- Solar power integration
Primary Risks:
- Utility integration failures (septic, water, power)
- Remote location logistics
- Weather-related delays
- Specialized GC expertise required
Risk Independence Analysis
The three markets demonstrate low correlation, providing natural diversification for the captive.
Geographic Distribution
Student housing concentrates near urban campuses, multi-generational in suburban areas, and rural in remote locations. Geographic separation reduces correlated weather and economic risks.
Temporal Patterns
Student housing peaks before academic terms, multi-generational follows family planning cycles, and rural development is weather-dependent. Staggered demand smooths GC utilization.
Risk Profiles
Student housing risks schedule delays, multi-generational risks payment continuity, and rural risks utility integration. Different risk types prevent systemic failures.
See the Data
Our queuing simulation demonstrates how these three markets interact with our 12 General Contractors.