Small, dorm-style buildings are appearing in several Houston neighborhoods, including the Third Ward, University of Houston area, and East End. These structures are part of a growing trend in co-living arrangements aimed at providing affordable housing for single adults.
The Passive Investor Network (PIN), a Houston-based real estate investor network, is backing around 33 newly built or in-progress co-living properties. These projects are designed specifically for PadSplit, an Atlanta company that rents out private bedrooms in shared homes. PadSplit offers an alternative to traditional apartments by removing barriers such as large deposits and income requirements.
Most PadSplit rooms available in Houston—almost 2,000 across the metro area—are still located in older properties. However, more investors are now developing new co-living units not only in Houston but also in cities like New Orleans, San Antonio, and Jacksonville.
One PIN project called the “Juice Joint” is located in the Third Ward. It features ten bedrooms with individual bathrooms spread over three floors and includes shared kitchenettes and laundry facilities. The property has an Art Deco speakeasy theme throughout.
Rents for these new-build co-living rooms range from about $1,000 to $1,200 per month depending on location. This pricing is similar to the average rent for a Class B one-bedroom apartment in Houston but lower than newer Class A apartments which average about $1,471 per month according to MRI Software. Newly built single-family homes typically lease closer to $2,000 based on data from John Burns Research and Consulting.
Supporters of PadSplit say savings come from bundled services such as utilities, internet access, furniture, and cleaning included with rent. Tenants can avoid long-term leases and pay lower move-in fees—usually around $100 compared to up to $1,800 upfront for some apartments in the area.
PadSplit does not require traditional credit checks or high income thresholds for renters. This approach makes it easier for people who might be excluded from conventional rentals to find housing while allowing investors to focus on increasing occupancy rather than raising rents.
“Rather than carving up older houses,” according to the press release,“PIN projects are purposely built for PadSplit.”
PadSplit “pitches itself as an affordable alternative for renters priced out of traditional apartments by deposits, income requirements and bundled fees.”
“At PIN’s Third Ward property…bedrooms are spread across three floors with multiple kitchenettes shared laundry and communal refrigerators…Each room has its own bathroom…An Art Deco speakeasy theme runs throughout with private rooms named after cocktails and finished with brass fixtures and dark tile.”
“Rents for PIN Group’s new-build co-living rooms run from about $1,000 to $1,200 a month depending on the site.”
“PadSplit backers argue the savings show up elsewhere. Utilities internet furniture and cleaning are usually included and tenants aren’t locked into yearlong leases.”
“PadSplit also skips traditional credit checks and steep income thresholds lowering barriers for renters who might otherwise be shut out tying investment opportunity to density rather than rent growth.”
