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Matthew Davies of Harmony Communities: How We Are Helping To Make Housing More Affordable

Spend less time networking with luncheons and meetings and more time doing and strategizing. Meetings and networking lead to wasted time and lots of inaction. You need to be decisive and you need to take action to get ahead.

In many large cities in the US, there is a crisis caused by a shortage of affordable housing options. This has led to a host of social challenges. In this series called “How We Are Helping To Make Housing More Affordable” we are talking to successful business leaders, real estate leaders, and builders, who share the initiatives they are undertaking to create more affordable housing options in the US.

As a part of this series, we had the pleasure of interviewing Matthew Davies.

Matthew Davies is the founder of Stockton, CA-based Harmony Communities, which currently owns and operates thirty-eight manufactured housing communities in the western United States. An investor and community development professional working for affordable housing solutions, Davies’ goal is to help bring the opportunity for homeownership to people in his home state who otherwise could not afford to buy a home.

Thank you so much for doing this with us! Before we dig in, our readers would like to get to know you a bit more. Can you tell us a bit about your “backstory”? What led you to this particular career path?

I come from a family with a strong background in single family affordable housing. We live in an area with a great need for affordable housing. About twenty years ago, we recognized this need as an opportunity to do “good” capitalism. Businesses can do “good” capitalism when their efforts answer a need, provide a public service, and add value to the world at large.

Can you share the most interesting story that happened to you since you began your career?

Earlier this year, we took over a vacant mobile home park that had been run to the ground and left to be abandoned — a first for us. In the last 4 months, we have filled nearly one-third of the park and are continuing to fill it. We’ve redone much of the infrastructure and have given it a complete facelift. It’s enjoyable to watch a community rise from the ashes and become a viable community once again.

Are you able to identify a “tipping point” in your career when you started to see success? Did you start doing anything different? Are there takeaways or lessons that others can learn from that?

Several years ago, we recognized that our vision had become too broad in multiple areas. For example, we were offering floating homes in marinas as one affordable housing option and owned several parks where we rented RV spaces in addition to mobile homes. Once we realized that if we understood one area of affordable housing more than anyone else, we could grow and expand. So we started doing less.

In the past few years, we have established our niche in the tiny home market — also called park model homes. With their more lenient zoning, ease of installations, and breadth of usage, we were allowed to up our game. We now buy and sell more park model homes than any other business in California and perhaps even the nation. For example, in one factory, we have purchased seventy-five percent of their production thus far in 2021.

None of us are able to achieve success without some help along the way. Is there a particular person to whom you are grateful who helped get you to where you are? Can you share a story about that?

My father and his colleagues have been instrumental in my success. Out of college, I was fortunate that my father introduced me to savvy people who understood real estate and development. I cut my teeth developing medium density affordable housing and that segued into the manufactured housing communities. I was lucky to call some of these people partners in some of my earlier projects. With their assistance, I was able to punch well above my weight.

Do you have a book, podcast, or talk that’s had a deep impact on your thinking? Can you share a story with us? Can you explain why it was so resonant with you?

I’ve read Dale Carnegie’s How to Win Friends and Influence People at least fifteen times over the last fifteen years. What resonates with me is the fact that any business at its core is a people business and that business and life are all about relationships.

Can you please give us your favorite “Life Lesson Quote”? Can you share how that was relevant to you in your life?

Dale Carnegie says, “A person’s name is to that person, the sweetest, most important sound in any language.” This quote illustrates the importance of understanding what is important to other people and what motivates them, as well as their needs, wants and desires.

Ok super. Let’s now shift to the main part of our discussion about the shortage of affordable housing. Lack of affordable housing has been a problem for a long time in the United States. But it seems that it has gotten a lot worse over the past five years, particularly in the large cities. I know this is a huge topic, but for the benefit of our readers can you briefly explain to our readers what brought us to this place? Where did this crisis come from?

Government overregulation and NIMBYism (Not In My Back Yard) are the biggest obstacles to building the affordable housing stock in this country and particularly in my home state of California. Housing, energy policies, automobiles, and manufacturing are all great examples of areas where legislation impedes development. Creating policies that discourage investment, such as — on the housing side — rent control, has the countereffect of depleting the affordable housing supply and driving prices up.

Can you describe to our readers how your work is making an impact to address this crisis? Can you share some of the initiatives you are leading to help correct this issue?

We pride ourselves on maintaining and expanding the affordable housing stock under our control. Additionally, while the word ‘gentrification’ is a dirty word in some circles, the truth is that housing stocks become obsolete and lose functionality over time. Upgrades are required for a community to maintain its relevance to those seeking housing. These upgrades are integral to the greater good of society.

Can you share something about your work that makes you most proud? Is there a particular story or incident that you found most uplifting?

Seeing people experience homeownership for the first time never gets tiring. Many hard-working, first generation families that have integrated to the US just wanting to do the best they can for their families have found a place to call home in one of my housing communities. To help them attain homeownership — knowing I played a role in that — is extremely rewarding.

In your opinion, what should other home builders do to further address these problems?

Continue to lobby your elected officials to address the root causes of the regulation crisis and cut red tape. I also encourage developers to think outside the box when it comes to affordable housing projects. There are a variety of ways to increasing housing densities, from tiny homes to going vertical.

Can you share three things that the community and society can do to help you address the root of this crisis? Can you give some examples?

First, elect officials that have our interests at heart — who are willing to address the problem of lack of affordable housing with solutions that promote development, thereby increasing the housing supply.

Second, demand action from city councils and supervisors.

Third, find ways to interrupt the NIMBY mentality and educate neighboring residents on the greater good for the community.

And, I’ll add a fourth, both developers and government officials should approach projects with an open mind and work together to help shape the projects so they meet the community’s needs.

If you had the power to influence legislation, are there laws which you would like to see introduced that might help you in your work?

At the state level, I’d ask for a full repeal of the California Environmental Quality Act (CEQA). The 50-year-old policy is often used as a tool by special interest groups to stop any project they disagree with and is a major impediment to the development of affordable housing in California.

At the federal level, I’d ask the U.S. Department of Housing and Urban Development (HUD) to do an honest assessment on the supposed disparate impact of many housing policies and how HUD guidance to address this impact is actually making housing less affordable and inclusive.

What are your “5 things I wish someone told me when I first started leading my company” and why? Please share a story or example for each.

1. Hire a person for HR during your company’s early years. Employees are a vital part of any business and it’s imperative that you have someone who can manage hiring, onboarding, and related policies.

2. Prepare for growth well in advance. Think ahead.

3. Systems, systems, systems. It’s a lot easier to start with systems and grow into them than to implement something down the road.

4. Spend less time networking with luncheons and meetings and more time doing and strategizing. Meetings and networking lead to wasted time and lots of inaction. You need to be decisive and you need to take action to get ahead.

5. People think that bigger and better is a sign of success. Be the opposite. Keep your thinking humble and emphasize your family roots.

You are a person of enormous influence. If you could inspire a movement that would bring the most amount of good to the most amount of people, what would that be? You never know what your idea can trigger. 🙂

I am only 43 years old and I fear for our younger generation. I believe if you don’t understand history, you’re doomed to repeat it. Capitalism, while not perfect, has brought more good across the world than any alternative.

Is there a person in the world, or in the US whom you would love to have a private breakfast or lunch with, and why? He or she might just see this, especially if we tag them. 🙂

I’m a huge fan of Charles Koch’s ideas of freedom and “good profit.”

How can our readers further follow your work online?

You can find me on LinkedIn at www.linkedin.com/in/matthew-davies-stockton or visit the Harmony Communities website and blog at https://harmonycom.com.

This was very meaningful, thank you so much, and we wish you only continued success.


Matthew Davies of Harmony Communities: How We Are Helping To Make Housing More Affordable was originally published in Authority Magazine on Medium, where people are continuing the conversation by highlighting and responding to this story.

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