High inflation and rising interest rates are making it difficult for most people in the US to own homes. Likewise, tight inventory has seen the value of the US housing market hit record highs of $46.8 trillion as the shortage of homes props up unprecedented housing demands. ASCK is one company addressing opportunities that continue to crop up amid the challenges in play at an affordable level.

US Housing Market Challenges

With the value of US homes climbing by 0.4% in June compared to the same period last year, it is also up by about 19.1% from two years ago. The increase in value means more Americans can no longer afford a new home, given the ever-growing cost of living. The dominance of the 30-year fixed-rate mortgage is also propping up home values, putting them beyond the reach of most people.

At the height of the pandemic, the US cut interest rates to record lows, with the 30-year mortgage dropping to 3%. Fast forward, interest rates have risen significantly, which means most people can’t afford to take a mortgage, with rates doubling to 6% or more. Inventory levels have also shrunk significantly, putting more pressure on prices, which continue to increase significantly. The price increase has seen home sales in the US hit all-time lows, falling by 15% annually.

ASCK’s Affordable Homes

AuscreteCorporation’s (OTC: ASCK) Goldendale, WA based factory produces their own proprietary construction material used in homes that appeal to the mass market by being highly affordable. It specializes in building green, energy-efficient residential and commercial structures, both as a manufacturer and real estate contractor.

These medium-sized residential structures use insulated components that are low in maintenance needs, fire resistant, affordable, and constructed in a fraction of the time. ASCK’s primary goal is to address that group of people who wish to participate in the American Dream but are unable to do so due to financial constraints tied to the construction of new homes.

ASCK has its construction materials production plant in Goldendale, WA. They currently produce enough specialty panels to construct around 40 houses per year. Projected planning includes the expansion of production to 300 houses or equivalent structures by the construction of a larger factory space. 

Consequently, the company has a manufacturing plant in Goldendale, Washington, tasked with coming up with affordable house-building materials and parts. The plan is to come up with parts and materials capable of producing over 300 houses a year to address the ever-growing need for affordable houses.

While there is no magic in producing high-quality, affordable homes, the company has developed a proprietary cementitious based hybrid material that is lighter than concrete, has superb insulation properties and is cast in large panels. By producing the materials in a mass production format by table casting extrusion techniques of external and internal wall and roof sections, the company has achieved construction of beautiful and affordable homes at less than two thirds the cost of traditional “stick built” construction. Typicallypriced around $110 per square foot.

In addition, the company operates a metal fabrication plant that produces their own rebar forming assemblies for the panel creation as well as specialty production equipment. The facility relies on friendly, non-toxic, and pet-free materials that are readily available worldwide. ASCK can produce the large panels at very low cost using simple and controlled casting techniques.

The company is also able to use in part, lower-cost raw materials such as cement and sand as opposed to expensive and labor-intensive lumber products as part of its cost cuts without compromising on quality.

By using ASCK’s A/I controlled blending and placement equipment, the Company’s output of high-quality, affordable homescan be a matter of days, not months. The major labor savings at the factory and the building site are the key to enabling the overall low-cost home construction.

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