Our growth last year matters only because we were able to help more individuals seek quality affordable housing.
ATLANTA (PRWEB) February 08, 2021
PadSplit, a mission-driven marketplace that helps solve the affordable housing crisis, is today announcing significant growth in 2020. PadSplit grew its revenue by 179 percent year-over-year and doubled the amount of affordable housing units to its marketplace as it expanded to new cities, including Houston. As the pandemic set in and disproportionately affected lower income workers, PadSplit also established new partnerships with nonprofits and developed an emergency assistance fund to support those who were in need of affordable housing. This growth was accomplished while increasing property owners earnings and without the use of public subsidies.
“Last year was a tumultuous year for everyone, but no more so than for those who were in need of affordable housing,” said Atticus LeBlanc, PadSplit’s founder and CEO. “Our growth last year matters only because we were able to help more individuals seek quality affordable housing. With the housing affordability crisis only getting worse, there is still much work to be done.”
Key growth metrics for PadSplit in 2020 included:
- Doubling its number of affordable housing units, from 650 to now 1,300
- Establishing partnerships with nine organizations to better serve vulnerable populations or those who may require affordable housing
- Creating an emergency assistance program to aid PadSplit members who fell behind on weekly rent payments, raising more than $90,000 in all
- Expanding to new cities including Houston
- Growing its employee footprint from 26 full-time employees at the end of 2019 to 50 full-time employees at the end of last year
- Raising a $10M Series A round of fundraising, to fuel additional growth this year
- Continuing to demonstrate to hosts and property owners why they should join PadSplit’s marketplace by increasing net operating income, on average, by 60-100%
Founded in 2017 and headquartered in Atlanta, PadSplit provides shared housing -- a “PadSplit” -- with private, furnished bedrooms and fixed utility costs as well as access to 24/7 telehealth and employment staffing, so members can obtain safe, clean, and affordable housing. PadSplit members average $25,000 in annual income and report $516 in monthly savings between housing, utility, and transportation costs. Each PadSplit home must meet specific design guidelines designed to exceed HUD standards, while members must pass a criminal background check and screening process to qualify.
PadSplit’s model is overall designed to leverage housing as a vehicle for financial independence, and to that end, it has helped its members increase their credit scores by an average of 102 points. Many members were able to save enough in 2020 to purchase their own vehicles, move into their own apartments and even purchase their own homes, which they could then convert to PadSplits to begin the cycle for others. As a result of PadSplit’s growth, the company estimates that it’s been able to keep hundreds of individuals from homelessness.
One PadSplit member said about their experience: “PadSplit is a fresh start at a fraction of the cost, and it helped me build a foundation for financial stability. I knew I would need a space to fulfill my dream, and PadSplit gave me a leg up. Finding a fully-furnished place in the city at this price point is near impossible. What you get with PadSplit — fully-furnished, all utilities, laundry — can’t be beaten. I now truly believe that anything is possible and that PadSplit helped me in ways I could have never imagined.”
PadSplit is a mission-driven company that helps to solve the affordable housing crisis, one room at a time. Through its shared-housing model, the company aligns incentives between cities, nonprofits, and property owners to spur cost-effective housing creation without public subsidy, all while providing safe and affordable housing for working class individuals. PadSplit was founded by an affordable housing advocate and is advised by a team of nationally recognized housing leaders and investors including Enterprise Community Partners, the UC Berkeley Terner Center for Housing Innovation Lab, Kapor Capital, Impact Engine, & the Citi Impact Fund amongst others. Headquartered in Atlanta, PadSplit operates in several cities throughout the United States. For more information about the company or how to become a member or property owner, visit PadSplit.com.