An Airbnb cofounder's new startup wants to drop factory-made tiny homes into California backyards — see inside its $324,000, two-bedroom unit (2024)

Advertisem*nt

These days, Samara looks less like an arm of Airbnb and more like a fully grounded startup.

The company started with a studio and one-bedroom unit, exclusive to buyers in California. In the spring of 2023, it expanded with a not-so-tiny two-bedroom home.

The two-bed is currently Samara’s largest and most expensive product, starting at $324,000, including delivery and installation.

The two bedrooms are located on either end of the 47-foot-long unit, separated by a bathroom and joint living room and kitchen.

Advertisem*nt

It wouldn't be a California home without a deck.

Good thing the 690-square-foot unit has two — one with glass double doors.

Not big enough? A two-bedroom, two-bathroom option will be ready in April.

With this addition, Mike McNamara, the CEO of Samara, says the company will have a complete product portfolio.

Advertisem*nt

Despite their heftier costs and sizes, the startup’s CEO believes its largest units will also be its most popular.

If you're going to give up your backyard, you might as well get as much money out of it as possible, he said.

After all, rent on a two-bedroom apartment —especially one with two bathrooms — will always be higher than a one-bed or studio.

Advertisem*nt

ADUs have varying uses, from home offices to guest residences.

But McNamara says about 40% of its customers will likely use it as a rental.

"You put one of these things in your backyard, and in most cases in the Bay Area, you'll make money the next day," he told Business Insider. Northern California, which flexes higher rent than Southern California, is Samara's bread and butter.

Advertisem*nt

No, its customers aren’t exclusively Silicon Valley tech bros.

But its buyers all have one thing in common: equity, either from their employers' stock options or home appreciation.

"We see a lot of multi-generational living," McNamara said, citing an example of a customer who has held onto their Bay Area home for decades, resulting in a "tremendous" amount of accumulated equity.

Advertisem*nt

Of course, it wouldn’t be a modular, factory-built home without a manufacturing facility.

As with any mass-manufactured product, modular construction outshines traditional homebuilding methods in two areas: efficiency and cost predictability.

Samara has already delivered several units, according to its CEO. But those were of previous models, built using an outsourced manufacturer.

Advertisem*nt

In February, the startup announced it had acquired its own 150,000-square-foot factory in Mexico, about five miles south of the US border.

The acquisition was Samara's final puzzle piece to bring everything in-house, from design to engineering to manufacturing.

According to McNamara, it's what sets the company apart from other modular startups — some of which have been crumbling due to the cost of contractor outsourcing.

Armed with a manufacturing facility, the startup says it can now cut delivery times while increasing quality control.

Once the factory is in full swing, the company's CEO said it'll be able to churn out a delivery-ready ADU in one month and 1,000 in one year.

Advertisem*nt

Don’t expect Amazon Prime-level delivery times.

Samara handles all aspects of the construction, delivery, and installation process. Less exciting factors, like permitting and soil surveys, extend its lead time to seven months.

Before the home can be delivered, the team must also spend about six weeks on its customer's property, laying the tiny home's foundation and establishing on-site utility hookups.

Advertisem*nt

When the ADU, foundation, and permits are finally complete, a truck will deliver the product to the customer's home.

This is when the fun begins, or as McNamara said, when the home "flies through the air."

Once on-site, a crane will drop the home onto its foundation. After it's bolted into place and cleaned, it'll be Airbnb-ready within a few days.

Advertisem*nt

Regulations, such as building codes, have been a roadblock for modular home startups across the US.

McNamara isn't worried about that: Legislation in California has shifted wildly since Samara's conception — in favor of the business.

Advertisem*nt

"If you're living in California, you almost need a unit in the backyard to help you live life," he said.

With help from new laws and financial incentives, the Golden State is now leading the ADU revolution as a potential solution to the state's housing crisis.

Samara's CEO is confident the company will someday have a national product. But for now, there's no place like home for the budding ADU manufacturer.