PadSplit’s Rise in Phoenix: What I’m Seeing on the Ground

[Stepan Hedz]

Hi everyone,

I’m a realtor in Phoenix who works with investors to find properties that fit their strategies. Over the past year I’ve had the chance to help several PadSplit hosts purchase homes, which gave me a close look at how this model is starting to take shape here in Arizona.

In Phoenix, I’m seeing steady growth and more interest in PadSplit. The need for affordable and flexible housing options is clear, and the model is becoming a real solution for workforce tenants. I’m glad to be here, and I’m looking forward to learning from others while sharing what I’m seeing locally.

Here are a few observations from my side:

• In Phoenix, the model works best where floor plans allow for simple bedroom conversions, tenant demand is strong, and zoning is not a big obstacle

• Rents in this space have stayed solid even while the luxury rental market has softened

• Nationally, PadSplit recently crossed 25,000 units in 25 cities and secured $40M in Series B funding, which shows how much demand exists for workforce housing

For those of you in other markets, are you noticing similar trends with shared housing or workforce housing?