Simply Homes, a Portland-based startup, has raised $22 million in funding to address the affordable housing crisis in the United States. The company aims to buy single-family homes in blighted neighborhoods, renovate them, and provide affordable rentals to low-income families, the elderly, and the disabled. Unlike other iBuyers, Simply Homes focuses on providing well-maintained affordable housing in areas that need it the most. The startup’s mission is driven by the belief that improving housing stability can lead to increased social and economic mobility.
Key Takeaway:
Simply Homes secures $22 million in funding to expand its efforts in providing affordable housing to low-income families and vulnerable populations.
A Unique Approach to Affordable Housing
Simply Homes differentiates itself from other proptech companies by operating in blighted neighborhoods and serving the bottom end of the market. While many iBuyers focus on middle to upper-class neighborhoods, Simply Homes recognizes the need to provide quality affordable housing in areas that have been neglected. CEO Brian Bagdasarian emphasizes the importance of building homes that are within the financial reach of those who need it the most.
The Impact of Affordable Housing
Simply Homes is driven by its vision to help individuals and families overcome poverty and improve their chances for social and economic mobility. Studies have shown that children who move into lower-poverty neighborhoods can experience a 31% increase in lifetime earnings. By providing stable and affordable housing options, Simply Homes aims to create positive long-term impacts on the lives of its tenants.
Growing Success and Expansion Plans
With its innovative approach, Simply Homes has rapidly grown since its inception in 2020. The company has seen over a 50% increase in revenue quarter over quarter since its launch. Currently operating in Pittsburgh, Pennsylvania, and Cleveland, Ohio, Simply Homes plans to expand its footprint into other cities, including Baltimore, Maryland, and parts of the Midwest. The company strategically selects stable markets that are not susceptible to housing industry fluctuations.
The Role of Artificial Intelligence
Simply Homes leverages artificial intelligence (AI) and machine learning to accurately underwrite properties and make data-driven decisions. CEO Brian Bagdasarian’s background in AI, combined with co-founder Robert Kavanagh’s real estate experience, has enabled the company to develop a technology platform that rapidly interprets extensive amounts of data. This allows Simply Homes to efficiently source, acquire, renovate, and manage properties while ensuring profitability and stability.
A New Paradigm for Affordable Housing
Simply Homes’ unique model has attracted significant investor interest. In its recent funding round, the company raised $22 million, led by Gutter Capital and Watchung Capital. James Gettinger, managing partner at Gutter Capital, recognizes the importance of Simply Homes’ mission to rejuvenate aging housing stock and make affordable homes accessible to those most affected by the affordability crisis. The startup’s commitment to addressing the lack of affordable starter homes sets it apart in the market.
By securing funding, Simply Homes aims to expand into new markets and develop AI-powered virtual analysts to streamline data interpretation for acquisitions. The company’s innovative approach to affordable housing and its utilization of AI make it a significant player in addressing the housing crisis in the United States.
