A small home in New Orleans represents a big shift in how real estate development is funded.
Designed by architect Jonathan Tate, the Starter Home Two project in New Orleans recently reached its crowdfunding goal of $95,000 via the website Small Change. In an unusual move, the investment opportunity was open to the general public rather than just accredited investors. Tate is known for transforming odd-shaped vacant lots in New Orleans into architecturally-bold infill housing aimed at first-time home buyers.
“This was our moment,” says Small Change’s founder Eve Picker. “We saw the need. By connecting investors with developers, we can help to build real estate projects that make cities better. And everyone can participate.”
So far, investors have funded projects via Small Change in cities including Pittsburgh, Los Angeles, New Orleans, and Washington D.C. They include Pittsburgh’s first tiny house, a historic main street mixed-use conversion, and affordable housing in Washington, D.C. with the largest residential solar install in the country.
There will be many more offerings in the near futures open to all investors, adds Picker.