In a quiet corner of East Texas, an empty steel box is turning into a lifeline for families on the brink of displacement. While the Lone Star State grapples with soaring rent prices and a severe shortage of affordable housing, one family—the Hanks—is thinking outside the box. Quite literally.
Dee Hanks, co-owner of Hanks Properties, points to a 40-foot shipping container under renovation on his land. “I can’t think of a place in America that doesn’t need something like this,” he says, surveying the progress. Over the next few days, that cargo container—once used to transport goods across oceans—will become a 320-square-foot rental home, complete with plumbing, electricity, and a small kitchenette. Rent? Under $700 a month, with utilities included. It’s part of a bold vision to tackle one of Texas’s most pressing issues: giving low-income families a place to live without forcing them into dire financial straits.
The Housing Crisis in Texas
The National Low Income Housing Coalition (NLIHC) publishes an annual report called The Gap, which sheds light on the availability of rental homes for extremely low-income (ELI) households. According to The Gap 2024:
Nationwide, only 34 affordable homes exist for every 100 ELI renter households.
In Texas, the ratio drops to 25 affordable units per 100 ELI households.
More than 900,000 extremely low-income renter households populate the state, yet only 227,000 units are available to them.
This leaves 680,000 families effectively out in the cold—often spending more than 50% of their monthly income on rent, leaving minimal wiggle room for essentials like groceries, transportation, and healthcare. For many Texans, it’s a crushing scenario, reflected in the words of co-owner Collin Hanks: “The tenants either have to sell an arm or a leg to afford housing, putting them one paycheck away from everything collapsing.”
Soaring Rents, Rising Need
In major metropolitan areas—Dallas, Houston, Austin—that gap is even more pronounced. A one-bedroom apartment can easily exceed $1,200 per month, well beyond what many working families, seniors, or people with disabilities can manage. Even in smaller towns like Tyler, rent is creeping upwards, spurred by inflation and a dwindling supply of lower-cost housing.
TexasHousers.org reports that some form of relief is urgent. Without fresh ideas and new inventory, local advocates fear more families will slip into cost-burdened or homeless situations. This is where the Hanks family comes in.
A Family’s Vision for Affordable Housing
The Hanks family has rooted in East Texas for over six generations, with a heartfelt commitment to community-focused solutions. By repurposing cargo containers—materials typically left unused or sold for scrap—they’ve discovered a construction method that’s both fast and cost-effective.
Dee and his three sons tested a series of designs:
- Duplex Option: Splitting a single container into two units, ideal for individuals or couples.
- Luxury Duplex: A slightly larger layout for tenants seeking extra amenities.
- One-Bedroom: A standard 40-foot container with added living room space.
- Two-Bedroom: Combining two containers to create roughly 640 square feet of family-friendly living.
“It’s a quick, 5-day process from building to move-in ready,” Dee says. Once delivered from their McAllen, Texas factory, the containers are insulated, fitted with windows, doors, and a small bathroom. The interior sees new flooring, paint, and a basic kitchen setup. The result? A snug but functional home.
According to Collin, they’re producing nearly “one complete house a day” at the factory, with requests pouring in from California, Maine, and Florida. “It turns out a lot of different communities need these,” he notes.
Embracing Tiny Living
For many, living in 320 square feet may seem daunting. Yet the “tiny home” movement has grown popular—partly out of necessity, partly due to shifting values around minimalism and sustainability. “Tiny homes and minimal living are trendy now,” Collin admits. “But it’s partly because we’re forced to be resourceful. Renters today can’t keep up with the cost of conventional apartments.”
Relieving Cost Burdens
Rent at a Hanks container home often comes in at $700 a month with bills paid. That’s a significant relief compared to local averages. Collin says the family is rethinking traditional lease structures, too, opting for month-to-month agreements rather than the usual six- or twelve-month contracts:
“When you have limited cash, sometimes locking into a long lease can be risky. Our model addresses that.”
This approach targets those who might struggle to pass strict credit checks or save enough for a larger deposit. As Collin says, they’re “putting together a new management model for these container homes because the traditional credit checks eliminate the people who need housing the most.”
A Path to Stability
The new shipping container properties near Lake Palestine underscore the concept’s viability. Three units are currently rented out, each providing the basics: a comfortable bed, a small kitchen, and essential utilities. By removing the usual financial barriers, families can stabilize, rebuild credit, and eventually transition to larger homes if they choose.
Community housing managers like Prentice Butler, Neighborhood Services Housing Manager for the city of Tyler, believe this type of approach can be a stopgap that “stops the bleed.” It might not be a permanent fix for a growing family, but it provides a short-term solution that’s far better than living out of a car or couch-surfing.
Why Shipping Containers?
Shipping containers are designed to endure harsh maritime conditions—salt, wind, and heavy use. Once their shipping lifecycle ends, many containers languish in ports or are sold cheaply. That sturdiness can be harnessed for housing:
Durable Construction: Steel walls rarely need major repairs.
Low Upkeep: With minimal wood or drywall, moisture issues are less common.
Cost Control: Building with steel “shells” can cut materials expenses significantly.
The Hanks family is also mindful of the environment. By reusing containers, they help reduce waste. And with fewer materials to purchase, the carbon footprint of each build is comparatively smaller than standard construction.
Addressing Inequalities
According to NLIHC data, Black and Latino households are more likely to be extremely low-income renters. They experience cost-burden and severe cost-burden at disproportionately high rates, often forcing impossible choices between rent and other basics like medical care.
By targeting these communities—without imposing stringent credit checks—the Hanks approach may help reduce longstanding housing inequalities. “There’s no margin of error for people living paycheck to paycheck,” Collin warns. “Once you slip up on rent, you’re out, and your record makes future housing even tougher.”
Expanding the Concept
Collin envisions scaling their production model nationwide. “I’d love to scale it nationwide. Our factory can handle it,” he says. “It’s about forging relationships with local municipalities, verifying codes, and setting up stable management systems.”
As with any novel approach, challenges remain:
- Zoning Regulations: Some areas have strict rules about minimum square footage or building materials.
- Community Acceptance: Neighbors might worry about property values or aesthetics.
- Long-Term Maintenance: While containers are durable, ensuring adequate insulation and temperature control (especially in Texas heat) is key.
Still, the Hanks family is confident. “The longevity of these units should be really good,” Dee says. “With minimal repairs, you can keep them going for decades. We’re excited about that.”
Steps Toward a Solution
For other communities or nonprofits intrigued by shipping container housing, consider:
- Research Local Codes: Some municipalities may already allow container homes if they meet safety standards.
- Collaborate with Allies: Partner with factories or shipping businesses. Bulk buying can lower costs.
- Innovate Rental Terms: Month-to-month leases and reduced application barriers can help those who need flexible housing.
- Highlight Success Stories: As more families successfully settle into container homes, share data with policymakers to encourage broader acceptance.
Looking Forward
Standing amid stacks of half-converted containers, Dee and Collin exude optimism. They can see a not-too-distant future where thousands of families across the country enjoy the security of a real address—for a fraction of standard market rates.
“At some point when you’re first starting out, you don’t have $1,200 or $1,500 a month to rent a place.” Dee underscores the urgency for newcomers to the job market, single parents, and seniors on fixed incomes. “We have to bridge that gap.”
As Texas grapples with a housing shortfall, every new idea—no matter how unconventional—can become a spark. Recycled shipping containers might not solve the crisis alone, but they offer a crucial stepping stone for people in need of immediate, stable shelter. By harnessing creativity, resourcefulness, and a dose of entrepreneurial grit, the Hanks family is offering an antidote to despair—and proving that when it comes to housing, there’s room for innovative solutions in even the most unlikely places.