Opendoor is shutting down
Over the past 9 years, we have helped define and popularize the concept of “coliving” as both a modern lifestyle and an investable housing product. With our founders living together in our properties for a combined 10 years, we truly ate, slept and breathed coliving. As such, it is with great sadness that we’ve come to the decision to close OpenDoor.
Why We Are Shutting Down
In the simplest terms, we are running out of money. The business model of coliving, as currently structured, is quite challenging – property management is a low margin business, while coliving management takes a lot of effort, care, and ultimately cost to deliver successfully.
In addition, the real estate investment market – and specifically investment into coliving deals – is incredibly difficult right now. The pandemic put many of our competitors out of business, and while we persevered, we ultimately have not been able to continue to finance our business and coliving projects.
Faced with this stark reality, we have come to the difficult decision to shut down our operations. The decision was made with considerable care and foresight, so as to provide ample time for our real estate partners to transition management smoothly. We believe this will have the least impact on our employees, partners and residents, which is our top priority.
What Happens with Our Communities
The 19 properties and 406 units we managed will live on, under new management, and all residents will retain their housing. We are working for smooth handoffs across the 3 states in which we operate, and will be encouraging our communities to maintain healthy cultures and positive relationships.
Although the long-term financial model of the property management business did not prove sustainable for us, the properties we managed are by and large on strong footing. We developed two properties in Oakland, both of which are strong investments and will continue independent of the brand. We still believe the coliving housing product and investment thesis can make sense, so long as it’s done with proper care to the design and operations of these communities.
Our Mission Lives On
We are proud to have contributed toward the creation of genuine community in this world, and much of this work will live on in our homes. In a time of societal discord and cultural tensions, we believe that spending quality and intentional time together, in person, is more important than ever. Our communities serve as microcosms for society, and we are inspired by the thriving, resilient cultures that many have forged during these difficult times – ones built on mutual respect, compassion and collaboration.
We are also proud of the industry we have helped pioneer. As the first and longest running coliving company in the US, we helped pave the way for a larger industry to grow around us. By bringing a human-centric, community approach to housing, we created a new real estate product that unlocks a greater vision and value, for residents and investors. We are excited to see how the industry continues to evolve, and hope that it brings greater connection, purpose and affordability to the housing market.
Share Your Story
We have seen how much OpenDoor members have learned and grown from their experiences living in collaborative homes. We are grateful for the years of partnership with many of our residents and other key stakeholders. If you were a past resident, business associate, employee or friend of OpenDoor, we’d love to hear your memories and reflections of your time with us – we are collecting these via video Tributes – click the button below to share what your time at OpenDoor meant to you.