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PadSplit provides a path to opportunity with access to affordable housing. Here’s how.

  1. The Economy

PadSplit provides a path to opportunity with access to affordable housing. Here’s how.

Affordable housing is increasingly out of reach for low-income renters. PadSplit is working within already-existing buildings for a solution.

Woman and man in a car smiling

Growing up in Silicon Valley, Johnny was surrounded by wealth he didn't have. 

He was raised in a household of limited means, and later, as an adult, ended up living out of his car for four months after being priced out of the $1,300-per-month rent he'd been paying for the San Jose garage he called home. 

He had dreams of becoming both a DJ and barber, and wanted to move to Las Vegas to make them a reality. When he saw an ad on Facebook for PadSplit, he found a path to opportunity he'd long been searching for. 

PadSplit converts existing real estate such as single-family homes into shared-living spaces, providing more quality affordable housing options for low-income renters. Through a housing solution that ties directly to a renter's financing needs, PadSplit offers a springboard for people to pursue opportunities and realize their potential.

For Johnny, this meant moving in with several housemates at a fraction of the rent he'd been paying for the San Jose garage. In the meantime, he began apprenticing at a barbershop and networking to get work as a DJ – neither of which would have been possible without renting through PadSplit. 

"Right now, everything is working out really well," he says. "I know that if I can work hard, I can develop and grow. I'm here to entertain and serve, and there's no better place for that than Las Vegas." 

Access to affordable housing is growing scarce 

Johnny's story is not unique. Across the U.S., there's a shortage of roughly 10 million affordable homes for low-income renters, largely concentrated around major metro areas that are often key for accessing professional and educational opportunities. 

Rental housing in these areas is growing increasingly expensive, in part due to the lack of new units available and the lack of space for new construction. 

Those who cannot afford the cost of rent are often forced into alternatives that impede on their ability to thrive, like skipping out on basic medical care, staying in expensive or far-away housing, or homelessness. 

Rent increased dramatically in the U.S. during 2018 and 2022, with the median rent for newly leased units increasing by 32% in that time, according to the Center on Budget and Policy Priorities. In 2019, around 9.4 million households paid over half of their monthly income on rent, including 7.8 million who were already at or below the federal poverty line. 

These housing affordability issues aren't just a financial problem; they reverberate onto all other aspects of a renter's life. Saving up for skyrocketing rent means investing less in long-term goals and career aspirations. 

PadSplit enables renters to pursue their passions

PadSplit's solution is to make the existing supply of housing work better for more people. Converting single-family homes into shared living spaces allows new, affordable rental properties to pop up in major metro areas that are otherwise facing critical shortages. 

For example, the average cost of a PadSplit room is $600 per month – a fraction of the median monthly rent for one-bedroom properties in cities like Chicago ($1,675), Atlanta ($1,795), and Dallas ($1,449). Rent includes a fully furnished private space with utilities, internet, and laundry usage included. No long-term leases or security deposits are required. Bills are due each Friday, which is intentionally designed to help residents boost their credit scores by making consistent weekly payments.

All told, renting through PadSplit can save an estimated $4,000 on an annual basis compared to traditional housing, empowering low-income renters to pursue educational and professional opportunities that were previously unattainable. Members have been able to buy cars, move into their own apartments, and even purchase their own homes. 

The housing affordability issues are addressed, the more we all will be able to pursue our goals 

PadSplit is currently available in Atlanta, Jacksonville, Richmond, Dallas, Indianapolis, Las Vegas, New Orleans, San Antonio, Tampa, and Phoenix. They are actively looking to expand to new neighborhoods and cities, and hope to make affordable housing increasingly available across the country.

The more rooms that become available, the more opportunities people like Johnny will have to build better lives for themselves and their families.

PadSplit is supported by Stand Together Ventures Lab, which invests in and supports founders and their early-stage start-ups that are challenging the status quo.

Learn more about Stand Together's economic progress efforts.

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