Sales prices nationwide are discouraging many hard working families seeking the American Dream of Homeownership. Some would be buyers are being priced out of markets because they simply cannot afford the area while others earn too much to qualify for government lending assistance. Plus, the combined overreaction to subprime lending from the real estate industry, our elected officials and the news media, and the probable tightening of credit for those who need it most, will not help alleviate the problem. In fact, it will only exacerbate it.

Thankfully, many builders -- with Californians leading the way yet again -- are offering solutions that not only meet the needs of these would-be buyers, but also help owners build more equity by enhancing the value of their property. The solution is to take full advantage of outdoor living.

"Our 'Backyard Homes' are built to meet or exceed California Building Codes and local code requirements. All floor plans comply with California Energy Code requirements and meet the maximum (Zone 4) seismic regulations," said Western Homes Corporation, referring to California's Assembly Bill AB 1866, which requires local agencies to permit second dwelling units in residential zones without discretionary action. "The purpose of the State law was to increase California's supply of affordable housing in response to a perceived housing crisis in many areas of the state."

Western's outdoor homes are built outdoors, or "off-site," to maximize efficiency, shorten the building time and minimize disruption in a neighborhood. The company gives owners four choices of alternate use floor plans including: 1) the Guest Cottage with kitchenette or a full kitchen option for family members, guests or possibly an income producing rental, 2) An ADA (Americans With Disabilities) adaptable Grandparents Suite, 3) An At-Home Office that could be used for a home business or as student housing, and 4) A Pool House/Game Room to compliment backyard activities.

"These homes are delivered to site and installed on permanent foundations by authorized independent B-1 contractors. You can even choose your exterior elevation, siding and roofing materials to match your existing home," explained Western Homes Corporation.

Another California group, smartwindows.com, offers Smart Backyard Home^TM, a self-contained home custom designed to meet a family's needs. Built in the extra space in a backyard, the Smart Backyard Home is affordable and installed as an addition or expansion, rental housing, pool house, home office, or in-law apartment.

Again, ways to enhance the value of a home or to allow larger families to pool their money and afford the American Dream, starting the process of generating wealth through real estate. Best of all, a new technology, Structural Insulated Panels (SIPs), are cost and energy efficient.

"In addition to your extra living space and increased property value, your Smart Backyard Home will have all the benefits of SIP homes. It will be stronger, seismically superior, fire resistant, more energy efficient, and be built much quicker than ordinary homes," said the Smart Backyard Home Company. "We coordinate all permits and city requirements and our construction team will handle every aspect of building your Smart Backyard Home from foundation to finish."

SIP Construction is an inexpensive, easy to build, strong and well insulated building method that is quickly gaining popularity all over North America. Instead of using conventional studs, Structural Insulated Panels (SIPs) are used to frame and insulate a building. Compared to stick-framed buildings, SIP Constructions radically cuts down on construction time, assembling anywhere from two-to-three days compared to several weeks it takes to do the same for a conventional stud or 'stick-framed' house.

SIPs consist of two outer skins of oriented strand board (OSB) and an inner core of an insulating material (expanded polystyrene) to form a monolithic unit. They are pressure laminated together to provide a building panel that needs no additional frame or skeleton for support.

According to the Smart Backyard Home Company, SIPs can reduce heating and cooling costs by as much as 60 percent over conventional stick frame construction.

According to a survey done last year by the American Institute of Architects (AIA), there has been a sharp rise in the popularity of outdoor living space, with two-thirds of architects reporting an increase in demand for outdoor kitchens, patios and decks. While home sizes look to be stabilizing, households are using their properties more intensely. With more than 40 percent of architects reporting lot sizes shrinking and only seven percent reporting those to be growing, households are investing more attention on their yards.

"Almost two-thirds of architects reported an increase in demand for outdoor kitchens, patios, and decks, which is a dramatic surge from just one year ago. With that there has been a penchant for upscale landscaping and formal lot boundaries, as well as the desire for outdoor amenities such as pools, tennis courts, and gazebos," said AIA Chief Economist Kermit Baker, Hon. AIA, PhD. "The need for more ease of mobility within the home -- as evidenced by wider hallways and fewer steps -- is necessary in the design or renovation of houses that will be used by 'Baby Boomers' entering their retirement years. On the other hand, younger homeowners who grew up with very structured, formal living rooms are far more apt to want an open layout with less rigid boundaries."

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