How the construction of studios from United Dwelling is done
The American startup United Dwelling has raised $10 million in investments to develop its project. The company’s area of activity is the construction of studios, which are being built on the site of old garages. After that, the startup rents the houses, and part of the income is transferred to the owners of land plots.
The goal of United Dwelling is to solve the problem of the lack of affordable real estate, and the financing will make it possible to build a large number of compact houses, the area of which does not exceed 34 square meters. The company was founded in 2018 by Stephen Ditz, who once invested in Costco and Starbucks.
Startup invests its money in the construction of facilities, but on the land of garage owners. Then the housing is rented out and part of the money from it gets the owner. The owner or tenant can also buy back the property from the company for $88,000. Initially, United Dwelling planned to equip a house inside the garage, but then it turned out to be cheaper to build it from scratch.
In its activities, the startup focuses on people with low and middle income who want comfortable but inexpensive housing. Compact studios are available at an affordable price and are located in various parts of Los Angeles city.
The state of California is going through a housing crisis. Rents are increasing and many families can’t afford them and as a result end up on the street. United Dwelling decided to help solve the problem by finding a way to provide low-cost properties to people in need. The startup is looking for suitable plots with garages and is asking the landlord for extra income. The company takes care of the construction and management issues, and the landlord is required to give his consent to build the property. In Los Angeles alone 831 thousand garages have been found for the construction of studios. To develop an affordable housing concept United Dwelling has joined forces with the architectural firm Modative. Specialists have thought through every detail, the houses are equipped with electric stoves, washing machines, all systems are energy efficient, and the materials used are environmentally friendly. On average, renting such a home costs 1400 dollars, which is about 20% less than standard rates in the California real estate market.
The company plans to put 150 houses into operation by the end of the year, and in 2021 to increase this number to 1700 objects.
Many investors are interested in the concept and the startup itself, they are ready to invest money in the development of the company. Therefore, we should expect that this round will not be the last one, and United Dwelling will soon be able to attract even more money for scaling. So far, the construction of houses is underway in Los Angeles, but in the future they plan to deploy the program in other cities of the state.