PadSplit aims to address the lack of supply, access and affordability in the rental market with its co-living marketplace designed specifically for lower-income workers, which includes flexible commitment terms and payments as well as no minimum credit score or expensive security deposit.
Now, the company has created more than 10,000 rooms in 18 cities across the U.S., giving over 23,000 people access to stable living accommodations — a notable milestone given the current housing crisis and how it affects individuals dealing with economic instability. According to a recent report by Moody’s Analytics, researchers say it’ll likely take years until we see a recovery in the American housing market, and despite it slightly improving, the total housing deficit will remain in the 1.5 million to 2 million range in 2024.
“The largest portion of anyone’s income almost always goes toward housing costs,” founder and CEO Atticus LeBlanc told TechCrunch. “And if you look around, you know that housing costs are skyrocketing, as much as 40% in some markets. Where can the baristas who serve your coffee or, the wait staff in a restaurant, or the person who cuts your hair afford to live? PadSplit fundamentally believes that the people who serve our communities deserve an opportunity to live in them. Our mission is to change the world, one room at a time.”
Alongside today’s milestone announcement, PadSplit shared new data about its users, including how much they save per month on average ($332) and residents’ median annual income ($27,636). Most notably, active members have saved $2.6 million monthly and around $47.4 million in total savings generated.
“The life-changing results speak for themselves… These incredible results have led PadSplit residents to purchase their own vehicles, traditional apartments, launch their own companies and buy their own homes,” added LeBlanc.
When you look at the U.S. median monthly rent price — $1,966 as of November 2023 — housing continues to be unaffordable for minimum-wage employees. Additionally, the average cost of renting a room jumped from $755 in 2022 to $955 in 2023. PadSplit, meanwhile, reports that the average monthly cost to live in one of its units is $729.
In addition to offering furnished private bedrooms, shared common areas, fixed utility costs and Wi-Fi, PadSplit also offers 24/7 telehealth, credit reporting and job matching services, which could help set residents up for success. Members can move within 48 hours and pay on a customizable schedule.
PadSplit has units available in select cities across 15 states, including Arizona, California, the District of Columbia, Florida, Georgia, Indiana, Louisiana, Maryland, Missouri, Nevada, Oklahoma, Tennessee, Texas, Utah and Virginia. It plans to expand to more cities in Pennsylvania, North Carolina and Texas this year.
Since its launch in 2017, PadSplit has raised $35.1 million in funding from noteworthy investors like Core Innovation Capital, Impact Engine and Mark Cuban Companies.