Demand for new housing continues to hold record highs in the fast-growing state of Arizona. To meet this demand, the Phoenix-based construction technology company Mosaic, and its construction partner Mandalay Homes have reached a new milestone with building more than 315 homes for families in Arizona, but this is just the beginning.
In the past 12 months, Mosaic has quadrupled to a team of 130, driven primarily by a $ 14.5 million Series A investment round led by venture capital firm Andreessen Horowitz.
“We stay true to traditional house construction,” says Salman Ahmad, CEO and co-founder of Mosaic. “But if we can get even a fraction of the profits from software updates, we can create more unique places that are operationally viable and financially accessible.”
To date, the company estimates that it has increased throughput in the construction process for its partners by up to 30 percent, made possible by focusing on working with veterans of the home construction industry to improve and standardize the construction process, not the product.
Better still, focusing on perfecting processes ultimately allows for better customization and gives home buyers more architectural and design options at a competitive price. With the state experiencing increased housing demand from both current residents and those moving from other states, Mosaic’s technology adoption is timely, especially considering June is National Homeownership Month.
Arizona is quickly becoming known as the “silicon desert,” and continues to build on its reputation as a growing technology hub, backed by companies like Medtronic, Infosys, NXP, Carvana, SmartRent, Microchip and Intel, who poured $ 20 billion into building a new one Building investing facility – it is the fifth in the Phoenix area – to supply next-generation semiconductors.
Additionally, the state is now on the international stage as well, as Taiwanese TSMC recently announced it would build its second semiconductor manufacturing facility in the United States, resulting in an economic impact of $ 35 billion in expansion. Firms like TSMC and Intel are drawn to Arizona because of a combination of available land and infrastructure, a skilled talent base, affordable tax incentives, and few to no natural disasters.
By attracting more high-tech workers, the Phoenix region is becoming increasingly attractive for teleworkers and achieves a “To work from homeScore of 0.9 from a recent study by the National Association of Realtors. Any score above zero indicates a placement in the top half of the 3,142 counties studied, and a score of 0.9 is shared by other popular cities like Denver and Seattle.
Additionally, searches on Redfin in the first quarter of 2021 show Phoenix is constantly in. shows up Migration pattern for users based in Denver, Seattle, Chicago, and Los Angeles. Also a analysis von Zillow of moving outside of the state in 2020 by North American Van Lines moving company showed the Phoenix area as the best landing spot of all zip codes examined.
So far, Mosaic has been award winning in Arizona with Mandalay houses on up to 300+ houses Jasper in the Prescott Valley, as well as 35 apartments in Adora at Timber Sky in Flagstaff, planned with future parishes across the state.
“Prior to partnering with Mosaic, Mandalay had pushed the limits of what traditional product innovation and existing building materials could do,” said Dave Everson, owner and founder of Mandalay Homes. “By improving our control over the construction process and speeding up the framing time, we can add more of this much-needed housing supply without sacrificing quality.”
From January to March of this year, an analysis of the building permits issued by the National Association of Builders (NAHB) showed that permits nationwide rose 24 percent over the same period in 2020, but only 12 percent in Arizona. At the same time, they rose only 8 percent in the Phoenix region as home builders grapple with systemic inefficiencies and shortages in terms of manpower, suitable land and building materials, especially wood.
To meet the ever-growing demand for housing, Mosaic recruits interns from a variety of universities including ASU, MIT, Harvard and Yale, some of which have evolved into full-time employees. On a local level, Mosaic is working with students at ASU’s Luminosity Lab to tackle today’s real world challenges, where a team recently created house plans in 3D and used the underlying data to provide rich dashboards for analysis. Mosaic excels in the convergence of science and concrete solutions for the construction site.
“Mosaic really represents a convergence of my academic aspirations and my upbringing in Arizona,” explains Salman. “When people look back on the great traditional buildings of this millennium in a thousand years, we want them to be beautiful and durable. We know it’s an ambitious vision, but we are inspired and committed to making it happen every day. “