- A Silicon Valley startup, Abodu, is delivering additional residential units (ADUs) that can be installed in just one day.
- Abodu has just raised $ 3.5 million in VC funding, led by Initialized Capital, the company said Tuesday.
- The units are pre-approved in San Jose, California and could be a potential solution to the area’s lack of affordable housing.
- Abodu units are nearly 500 square feet and start at $ 199,000.
- You can find more stories on the Business Insider homepage.
Redwood City, California-based startup Abodu has a potential solution for one of the most expensive housing markets in the country: housing units for accessories.
Now this solution is one step closer to reality. The company has just raised $ 3.5 million in VC funds, led by Initialized Capital, Adobu announced Tuesday.
ADUs like the ones offered by Abodu are permanent structures that are often added to the ownership of pre-existing single family homes. They are also sometimes referred to as “grandma units” or “in-law units”, although they can also be a solution for adult children returning to their parents’ home, for example. Abodu says it installed “dozen” units in the past year.
Continue reading: The California real estate crisis is so dire that a startup just raised $ 3.5 million in VC funds to drop tiny houses in people’s backyards
Zillow has ranked San Jose as the hottest real estate market in the country for the past two years, and prices to match. Last year, the average home price in the city was $ 1.2 million. Meanwhile, the number of homeless people in San Jose has continued to rise, increasing by more than 40% between 2017 and 2019. The coronavirus pandemic has also resulted in a record number of young adults moving home.
California Governor Gavin Newsom and San Jose Mayor Sam Liccardo are working together to experiment with possible solutions for affordable housing, CityLab reported. Newsom has pledged to add 3.5 million homes to the state by the end of its term. Abodus ADUs have a big leg up here as the prefabricated San Jose homes have pre-approved, meaning the city paperwork can only take a day for buyers.
Here’s a look inside.