PadSplit’s goal is to tackle the issues of supply, accessibility, and affordability in the rental market. This unique co-living marketplace caters specifically to lower-income workers, offering flexible commitment terms and payments, as well as no minimum credit score or expensive security deposit requirements.
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.
This is a notable milestone, especially considering the current housing crisis and its impact on individuals facing economic instability. According to a recent report by Moody’s Analytics, experts predict that it could take years for the American housing market to recover.
- The total housing deficit is expected to remain in the range of 1.5 million to 2 million in 2024.
“The largest portion of anyone’s income almost always goes towards housing costs,” explains founder and CEO Atticus LeBlanc in an interview with TechCrunch. “Housing costs are skyrocketing, with some markets seeing a 40% increase. Where can the baristas, wait staff, or hair stylists afford to live? Our mission at PadSplit is to change the world, one room at a time.”
In addition to this monumental milestone, PadSplit has also shared new data about its users. This includes the average amount of money saved per month ($332) and the median annual income of its residents ($27,636). To date, active members have collectively saved $2.6 million each month, resulting in a total of $47.4 million in savings.
“The life-changing results speak for themselves,” says LeBlanc. “These incredible statistics have allowed PadSplit residents to achieve their goals, such as purchasing their own vehicles, traditional apartments, launching their own companies, and even buying their own homes.”
Looking at the median monthly rent price in the U.S. — which is currently $1,966 as of November 2023 — it’s clear that housing remains unaffordable for minimum-wage employees. On top of that, the average cost of renting a room has increased from $755 in 2022 to $955 in 2023. However, PadSplit reports that the average monthly cost to live in one of its units is only $729. Quite a significant difference.
In addition to offering furnished private bedrooms, shared common areas, fixed utility costs, and WiFi, PadSplit goes above and beyond by providing 24/7 telehealth services, credit reporting, and job matching for its residents. These additional services help set members up for success. Plus, with the ability to move within 48 hours and a customizable payment schedule, PadSplit offers unparalleled flexibility and convenience.
Currently, PadSplit has units available in select cities across 14 states, including Arizona, California, District of Columbia, Florida, Georgia, Indiana, Louisiana, Maryland, Missouri, Nevada, Oklahoma, Tennessee, Utah, and Virginia. And the company has plans to expand to even more states, such as Pennsylvania, North Carolina, and Texas, in the coming year.
Since its launch in 2017, PadSplit has raised an impressive $35.1 million in funding from noteworthy investors, including Core Innovation Capital, Impact Engine, and Mark Cuban Companies. Clearly, this innovative company is making waves in the rental market and paving the way for affordable and accessible housing for all individuals.
