Homz, a company dedicated to addressing the shortage of attainable housing communities in the U.S., has raised $50 million in pre-seed funding. Dallas-based venture capital firm Nanban Ventures, which invests in U.S. and India startups committed to making positive societal impact, is the lead investor, along with contributions from family offices as well as ultra-high and high-net-worth individuals.
According to the company, which announced its launch in summer 2022, it plans to use the pre-seed funding proceeds to form partnerships with cities and fund the development of communities in markets in the Southeast.
The company’s goal is to create a portfolio of sustainable, wellness-focused communities with the same design, layout, and amenities. It seeks to develop 50 communities in locales that are within a 20- to 30-minute drive from high-growth metropolitan statistical areas. In addition, Homz is looking to engage with municipalities that fit that criteria and can provide incentives to help develop these communities.
“What really stood out to us about Homz was its commitment to address the lack of attainable housing supply in the country in a way that not only reduces costs—which it does through city partnerships and standardization across communities—but also by creating communities that prioritize the health, safety, and wellness of people and the environment,” said Gopala “GK” Krishnan, CEO and managing partner of Nanban Ventures. “Investing in Homz provides us with an opportunity to contribute to the betterment of society and the livelihoods of many individuals and families without limiting our return potential. We are excited to see these communities come to life.”
Homz board member Kim Diamond added that the pre-seed funding illustrates the value institutions see in its business model and its potential to be a critical solution to addressing the funding challenges that prohibit the development of attainable housing.
Each of Homz’s mixed-use, master-planned communities will be comprised of four multifamily brands—UP, 24, NJOY, and LYF—to meet renters in different life stages as well as a selection of build-to-rent single-family homes. According to the firm, the UP and 24 brands will target value seekers, and the NJOY and LYF brands will provide larger floor plans for roommates and growing families.
In addition, each community will feature 54 public amenities, including clubhouses, swimming pools, athletic fields, playgrounds, urban farms, and Miyawaki, or tiny forests.
