Elon Musk Takes Aim at Affordable Housing Business … Sort Of

May 10, 2018

The innovative entrepreneur behind Tesla and SpaceX is now shifting his focus to a realm that some might consider to be more complex and challenging than luxury automobiles and intergalactic travel: Affordable housing. However, the approach to this subject may not be what many people expected.

Elon Musk took to Twitter earlier this week to announce that one of his businesses, a tunnel-digging endeavor, is getting involved in the affordable housing market.

“The Boring Company will be using dirt from tunnel digging to create bricks for low-cost housing,” Musk wrote on Twitter.

A spokesperson for The Boring Company told Bloomberg that the bricks will come from the "excavated muck," and that "there will be an insane amount of bricks.” At the moment, the company only has one tunnel under construction in Hawthorne, Calif.

However, this plan may have some drawbacks. For starters, bricks are a more expensive commodity in housebuilding, and California’s building codes require extra buttresses in brick buildings to prevent collapse during earthquakes. Juan Matute, a lecturer at the University of California, Los Angeles, and Associate Director of UCLA's Institute of Transportation Studies, complained to Bloomberg that Musk had a lopsided consideration of housing development.

“(He) assumes that housing costs are driven by construction materials, and particularly, construction materials that can be replaced by bricks,” Matutue said. “That's not the case.”

Nonetheless, Matute added that Musk may have a surprise to share in the near future. “That doesn't mean the Boring Company can't buy some land and build a few low-cost houses, with a partner like Habitat for Humanity,” Matute said. “And say, ‘Look what we did.’”

About the author

Phil Hall

Link copied

Published

May 10, 2018

Home Equity

Aven, Forest River Bring HELOC Financing To RV Dealerships

New co-branded home equity product puts HELOC financing at the point of sale as lenders compete for homeowners’ equity

Aven and recreational vehicle manufacturer Forest River have launched a co-branded home equity line of credit that puts HELOC financing directly into participating RV and marine dealerships, giving qualified homeowners another way to finance a major purchase without first ap...

C-Suite Strategies

Eleven Mortgage Exits Wholesale With Loans Still In The Pipeline

Benchmark Mortgage is shifting its resources to retail after closing Eleven’s wholesale and correspondent operation, while brokers face questions over loans already underway

Eleven Mortgage has exited wholesale and correspondent lending effective immediately, ending an eight-year run in the third-party origination market, and leaving mortgage brokers with loans already in its pipeline facing a compressed path to closing.Benchmark Mortgage confir...

Nov

Pasadena, CA

More from

Industry News

CHLA: More Freddie Mac MBS Buying Could Narrow Mortgage Spreads

Trade group estimates greater Freddie participation could compress spreads another 10 to 12 basis points as Fannie has taken the lead in GSE mortgage-bond buying

Industry News

Sep 23, 2026

Early Loan-Limit Race Splits Into Three Tiers

Lenders are now offering $845,000, $847,440, or $850,000 before FHFA sets the official 2027 limits

Industry News

Sep 23, 2026

Better, Garg Clash Over Claimed 46% Shareholder Support

Better disputes its former CEO’s preliminary consent count as the two sides trade accusations and an Oct. 2 target date approaches

C-Suite Strategies

Sep 23, 2026

Fannie Changes How Rent From A Former Home Counts

Fannie now prohibits leases for departing residences and permits market-analysis tools instead of Form 1007, creating a key documentation difference from Freddie Mac

Regulation and Compliance

Sep 22, 2026

MPF Expands Eligibility For Manufactured And Renovation Loans

The Mortgage Partnership Finance Program has expanded MPF Traditional eligibility for affordable loans, manufactured homes, renovations, and lender-funded assistance

Industry News

Sep 22, 2026