Brownstone Shared Housing's Ambitious Expansion in San Francisco

Brownstone Shared Housing, the operator behind the $700-a-month "pods" in San Francisco's SoMa neighborhood, is pushing forward with plans to significantly expand its unique housing model. Despite facing numerous challenges, including permit issues and legal battles, the startup has demonstrated resilience and is now eyeing a massive scale-up.

Caption: A view of Brownstone’s “pods” at the firm’s SoMa location in San Francisco. They’re 4 feet tall and can fit a twin mattress. Courtesy of Brownstone.

Overcoming Obstacles and Scaling Up

Since its inception two years ago, Brownstone has navigated a turbulent path. The startup initially opened its pod complex in Mint Plaza without the necessary permits, leading to complaints from city officials and threats of hefty fees. However, it has managed to withstand these challenges, avoid eviction, and continue operating.

CEO James Stallworth recently announced that Brownstone is close to leasing a new space near Mint Plaza, capable of housing 100 pods. But this is just the beginning. The startup plans to shift to a franchise model, encouraging landlords to convert vacant office spaces into pod housing. Stallworth's ambitious goal is to add 10,000 new pods in downtown San Francisco.

The Franchise Model and Market Demand

Under the proposed franchise system, landlords—particularly those with lower-end commercial office space—would partner with Brownstone to quickly set up pod housing. The pods, designed by co-founder Christina Lennox, can be installed in weeks, though permitting remains a slow process.

Stallworth emphasized that this initiative isn't for self-gratification but to address the city's housing crisis. With thousands of applications received for the $700-a-month pods, there's clear demand. He estimates at least 10,000 people are interested in affordable housing in San Francisco at any time, citing the high number of applications to local incubators like Y Combinator.

Resilience and Future Outlook

Brownstone's journey has been marked by viral attention and legal hurdles, including a fought-off $306,000 fee and a dropped eviction lawsuit. Despite these, the company has shown remarkable staying power. Stallworth notes a recent positive shift with city inspectors, and with the hiring of a new COO, Sam Daly, he is optimistic about scaling the business efficiently.

This expansion could play a key role in revitalizing San Francisco's downtown by filling vacant buildings and providing much-needed affordable housing options.