Las Vegas startup Roots Homes raises $2.2m to make homeownership easy for Millennials and Gen Z

Roots Homes, the Las Vegas-based startup pioneering fractional homeownership, announced a $2.2 milllion funding round led by Other Ventures, with participation from Behind Genius Ventures and Waveline VC.

The funds will enable the startup to accelerate the growth of its Las Vegas operations following a successful beta launch late last year. Roots' mission is to make homeownership easy for Millennials and Gen-Z by offering a truly convenient way to own a home.

Roots' fractional homeownership service upends the all-or-nothing nature of homeownership by allowing renters to purchase shares in their home each month. Roots will provide customers with a shopping budget to find a home. When they find one they like, Roots will buy it for them so they can move in. If the customer eventually wants to buy the home from Roots, they can, but they never have to. The equity a renter builds can be held long-term, go towards a downpayment, or be cashed out if they choose to move out. Roots will buy "most homes" in Las Vegas for their customers, allowing them to "test drive" a home to see if they like it before committing to buy it. Terms are 12 months and can be renewed year after year until a customer decides to either move out or purchase the home from Roots.

Lauren Self, Founder and CEO, Roots: "In the last 10 years, wages have increased 34% while home prices have doubled. That means you need to save twice the money to buy a home with only 34% more income. For most people, homeownership is impossible. Roots eliminates the barrier to entry that traditional homeownership requires and makes it easy for renters to own by doing exactly what they're doing now – renting."

Roots began onboarding early customers late last year. They met their first customer, Trish Vea, in a Facebook group where Las Vegas locals look for housing. At the time, Vea's large family was living in an apartment and dreamed of owning a home to give them more space. Vea said about Roots, "We are living proof that dreams come true. Roots helped us find a home in the area we like at a price we could afford. If you are looking for a home, I definitely recommend Roots. Let them make your dreams come true."

www.roots.homes