United Dwelling

About United Dwelling

United Dwelling, founded in 2018 by seasoned venture capitalist Steven Dietz, operates in the real estate development sector with a focus on addressing the affordable housing crisis in Los Angeles. Dietz, a co-founder of Upfront Ventures with a 30-year career backing successful companies like Costco and Starbucks, transitioned from investor to entrepreneur to tackle what he views as one of California's most significant challenges. The company was established in response to 2016 state laws that relaxed regulations on the construction of Accessory Dwelling Units (ADUs), aiming to unlock the potential of underutilized residential land.

The firm's primary business involves converting garages and backyards into small, prefabricated homes, providing homeowners with a new source of income and increasing the stock of affordable rental units. United Dwelling offers a comprehensive, end-to-end service that includes design, permitting, construction, and installation, presenting a fixed price to clients. Initially, the company's model involved leasing land from homeowners and managing the rental units, but it later pivoted to a merchant-builder model, constructing the ADUs for homeowners to purchase. The company still offers property management services, guaranteeing occupancy to the homeowner. To maintain cost-effectiveness, United Dwelling implements a scalable production strategy, building units in a factory and requiring at least five projects within a two-mile radius to proceed, which helps reduce construction costs.

United Dwelling's product line includes studio, one-bedroom, and two-bedroom ADUs, with sizes ranging from 328 to 647 square feet. These units are designed to be zero net carbon and come equipped with modern appliances, including a washer/dryer, solar water heater, and solar panels powerful enough to potentially eliminate the ADU's utility bill. The company primarily targets low- and middle-income neighborhoods, viewing these areas as having the largest opportunity for impact. Revenue is generated from the sale of the ADUs, property management fees, and connecting homeowners with financing. In May 2020, the company secured $10 million in a Series B funding round led by Alpha Edison with participation from Lightspeed Venture Partners. However, a public records search reveals a 2023 lawsuit filed by Invitation Homes against United Dwelling concerning alleged misappropriation of funds for a project that was not completed.