Samara, co-founded by Joe Gebbia, is riding on California’s backyard accessory housing unit hype with its unique modular tiny homes. Prices for the largest two-bedroom unit shown in renderings start at $324,000. Samara
Samara, co-founded by Airbnb’s Joe Gebbia, sells modular accessory living units.
In late February, the startup acquired a 150,000-square-foot factory in Mexico.
Take a look inside the most expensive unit, a $324,000 two-bedroom tiny home.
A new startup wants to install tiny houses in your backyard.
No, this isn’t a new twist on “The Wizard of Oz” (Ariana Grande and Ethan Slater have already covered it). I’m Samara and I’m based in California.
If the name doesn’t ring a bell, you might recognize one of our co-founders, Joe Gebbia. If the name Gebbia doesn’t sound familiar, you probably know the other company he co-founded: Airbnb.
Like his co-founder, Samara has roots in the home rental giant, where it previously functioned as an in-house think tank and design studio for six years. (Samara is backed by Airbnb and its other co-founder, Brian Chesky.)
However, the startup, which became independent in 2022, is not in the business of renting out homes.
Quite the opposite. We manufacture factory-built accessory dwelling units (ADUs), or tiny homes, that can be installed in Californians’ backyards.
These days, Samara looks more like a fully-grounded startup than a division of Airbnb.
Samara founders Joe Gebbia (left) and Mike McNamara (right) Samara
The company started with studios and one-bedroom units exclusively for buyers in California. In the spring of 2023, we added an addition to our not-so-small two-bedroom house.
The two-bed is currently Samara’s largest and most expensive product, starting at $324,000, including delivery and installation.
Samara unveiled the two-bedroom unit, shown in renderings, in May 2023. Samara
Two bedrooms are located at each end of the 47-foot-long unit, separated by a bathroom and a shared living room and kitchen.
It wouldn’t be a California home without a deck.
The two-bed unit shown in the rendering is 15 feet deep. Samara
Luckily, this 690 square foot unit has two rooms, one with glass double doors.
Not big enough? The two-bedroom, two-bathroom option is scheduled for completion in April.
The new manufacturing facility in Samara is located approximately eight miles south of the Mexican border. Samara
With this addition, Samara CEO Mike McNamara said the company now has a complete product portfolio.
Despite the higher cost and scale, the startup’s CEO believes the largest units will be the most popular.
The two-bedroom option shown in the rendering looks like a single-family home. Samara
If you’re going to give up your backyard, he said, you’d better get as much money as you can out of it.
After all, rent for a two-bedroom apartment, especially one with two bathrooms, will always be higher than a one-bed or studio.
ADUs have a variety of uses, from home offices to guest residences.
The backyard ADU shown in the rendering can be used as a source of passive income. Samara
But McNamara said about 40% of customers are likely to use it as a rental.
“If you put these things in your backyard, they almost always make money the next day in the Bay Area,” he told Business Insider. Northern California is a boon for Samara, as it offers the flexibility to choose higher rents than Southern California.
No, its customers aren’t just Silicon Valley technologists.
Northern California is an “attractive market” for Samara, the company’s CEO said. A studio rendering is shown above. Samara
But all of those buyers have one thing in common: employer stock options or equity in the home’s appraised value.
“We see a lot of multi-generational living,” McNamara said, citing examples of clients who have owned their Bay Area homes for decades and amassed “tremendous” amounts of equity as a result.
Of course, it wouldn’t be a factory-built modular home without a manufacturing facility.
Unlike traditional construction sites, Samara eliminates the need to plan projects for inclement weather. Samara
Like other mass-produced products, modular construction outperforms traditional home building methods in two areas: efficiency and cost predictability.
According to the CEO, Samara has already delivered several units. However, they are earlier models and were built using an outsourced manufacturer.
With manufacturing facilities, the startup says it can shorten delivery times while increasing quality control.
McNamara said the factory’s first units are expected to ship within the next few weeks. Samara
Once the factory is fully operational, the company’s CEO said it will be able to produce 1,000 ready-to-deliver ADUs within a month and within a year.
Don’t expect Amazon Prime level delivery times.
All models come with a kitchen, as shown in the rendering. Samara
Samara handles all aspects of the construction, delivery and installation process. Less glamorous factors such as permits and soil testing extend the lead time to seven months.
Before handing over the home, the team must also spend approximately six weeks on the customer’s property, laying the foundation for the tiny home and establishing on-site utility connections.
Once the ADU, foundation, and permits are finally completed, a truck delivers the product to the customer’s home.
Samara’s CEO said it will take about 20 minutes to lift the house onto the foundation using a crane. Samara
That’s when the fun begins, or as McNamara puts it, when the house “takes flight.”
Once on site, a crane will drop the house onto the foundation. Bolt it in place, clean it, and within a few days he’ll be ready to use it on his Airbnb.
Building codes and other regulations are an obstacle for modular housing startups across the country.
The Samara factory employs 35 people. Samara
McNamara isn’t worried about that. California law has changed significantly in a business-friendly direction since Samara’s vision.
“Living in California, you pretty much need a unit in your backyard to support your lifestyle,” he said.
Samara ADUs are only available in California. Samara
With the help of 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 that the company will one day have a national product. But for now, there’s no place like home for this up-and-coming ADU maker in his own right.
Axel Springer, the parent company of Insider Inc., is an investor in Airbnb.
