Small, dormitory-style buildings are appearing in several Houston neighborhoods as part of a trend toward co-living spaces aimed at adults seeking affordable housing. These new developments have been seen in the Third Ward, University of Houston area, East End, and other parts of the city.
Co-living is becoming more organized in Houston. According to the Houston Chronicle, about 33 newly built or planned co-living properties are being developed by investors working with the Passive Investor Network (PIN), a local real estate investment group. Instead of converting older homes, PIN’s projects are designed specifically for PadSplit, an Atlanta-based company that rents private bedrooms within shared houses.
PadSplit markets itself as an affordable alternative for renters who cannot meet the requirements or costs associated with traditional apartments. Most PadSplit listings in Houston—nearly 2,000 rooms across the metro area—are still located in older buildings. However, investors are increasingly constructing new co-living units not only in Houston but also in cities like New Orleans, San Antonio, and Jacksonville.
One example is PIN’s “Juice Joint” property in the Third Ward. The building has ten bedrooms spread over three floors and features multiple kitchenettes, shared laundry facilities, communal refrigerators, and each room includes its own bathroom. The property uses an Art Deco speakeasy theme throughout.
Rents for these new co-living rooms range from $1,000 to $1,200 per month depending on location. This is similar to average rents for Class B one-bedroom apartments in Houston but remains lower than newer Class A units which average about $1,471 per month according to MRI Software data. Newly built single-family rental homes generally lease for closer to $2,000 based on research from John Burns Research and Consulting.
Supporters of PadSplit say that tenants save money because utilities, internet access, furniture and cleaning services are included with rent. Tenants can also avoid long-term leases; move-in fees are typically around $100 and sometimes waived altogether compared to upfront costs between $1,600 and $1,800 at many local apartments.
PadSplit does not require traditional credit checks or high income thresholds for tenants—a policy intended to reduce barriers for those unable to qualify for standard rentals.
“Utilities, internet access, furniture and cleaning services are included with rent,” according to supporters of PadSplit.
“Tenants can also avoid long-term leases; move-in fees are typically around $100 and sometimes waived altogether compared to upfront costs between $1,600 and $1,800 at many local apartments,” said a representative from PIN Group.
PadSplit’s approach ties investment opportunity more closely to density rather than increasing rents.
