SAN FRANCISCO, California (MO.Properties) – Divvy Homes, a company that creates homeowners by building savings every month, today expands into seven new markets. Now, residents in the greater Denver, CO area, Fort Lauderdale, FL; Houston, TX; Jacksonville, FL; Miami, FL; Minneapolis, MN; and Orlando, FL can safely transition from renter to owner with Divvy’s proven model. With many Americans spending more — or all — of their time at home, Divvy is seeing increased interest across its existing markets and is expanding to meet high demand for homeownership in these new regions.
Divvy believes in the value of homeownership, aiming to create a world where every person can own their forever home. Divvy partners with renters on their path to homeownership by helping them find their budget for a home, buying the home they want, and then renting it back to them for three years. During that time, renters build the down payment savings needed to buy it outright, while also learning the ins and outs of responsible homeownership. The company has helped customers build up an average of $5,600 in savings, and helped get folks into homes in Atlanta, GA; Cincinnati, OH; Cleveland, OH; Dallas, TX; Memphis, TN; Phoenix, AZ; San Antonio, TX; St. Louis; MO; and Tampa, FL.
“At Divvy, we have an ambitious goal of making homeownership attainable for all, and our expansion into these new markets serves as an important milestone in turning this dream into a reality,” says Adena Hefets, co-founder and CEO of Divvy Homes. “This year especially, when the family home has been a refuge and a bright spot during these challenging times, we’re so proud of the work we’re doing to make this part of the American Dream come true for so many.”
This expansion nearly doubles the number of markets where Divvy can partner with renters on the path to homeownership, bringing the total to 16 regions. The Divvy team strategically selects where it will launch based on where the company’s offerings will make the greatest impact. Denver, Ft Lauderdale, Houston, Jacksonville, Miami, Minneapolis, and Orlando were chosen for their market size, proximity to locations where Divvy has established a base of operations, and strong local economies. By expanding into these seven cities, the Divvy program is now available to an additional 5.3 million people across the country.
Based in San Francisco, Divvy is straying from the typical Silicon Valley model, instead looking beyond their own neighborhoods and needs to serve everyday Americans looking to access the nation’s greatest wealth builder. Real estate agents can also use Divvy to grow their business, as the company partners with local agents who take renters out on the town to find their forever home. The best agents bring buyer leads and use Divvy as a resource to create more homeowners.
Divvy has grown rapidly since its launch in 2017 and is currently operating in 16 markets with plans to roll out in more cities in the future. To date, the company has raised close to $200M in total capital, with backing from GIC, Lennar, Caffeinated Capital, a16z, SciFi VC.
How it Works
Divvy partners along every step of the home buying process, with the goal of helping renters transition into homeownership. Buying a home with Divvy starts with a five-minute application that results in an approved home-buying budget and an introduction to a real estate agent who helps find their forever home.
Once found, Divvy purchases the property, while the renter contributes an initial 2 percent of the home value to officially step onto the path to homeownership.
Approximately 25 percent of each subsequent rent payment goes toward saving for a traditional mortgage, so the new residents have a down payment to buy their home in three years. If renters change their mind, they can walk away from the home and get cashed out for their savings; if they want to buy it faster, homeownership can be accelerated. The flexibility of renting with the freedom and wealth building power of homeownership.
Divvy Homes creates homeowners. Currently available in Atlanta, GA; Cincinnati, OH; Cleveland, OH; Dallas, TX; Denver, CO; Ft Lauderdale, FL; Houston, TX; Jacksonville, FL; Memphis, TN; Minneapolis, MN; Miami, FL; Orlando, FL; Phoenix, AZ; San Antonio, TX; St. Louis, MO; and Tampa, FL. Divvy is backed by GIC, Lennar, Caffeinated Capital, a16z, SciFi VC. Divvy was incubated in Max Levchin’s startup studio HVF by Adena Hefets, previously of Square and Brian Ma, previously of Zillow, along with co-founders Nick Clark and Alex Klarfeld. With Divvy, renters select any home on the market, Divvy purchases it, and the renter builds home savings with every payment. Divvy’s mission is to create a world where every person has a stake in the neighborhood and home they live in.