Turning Renting into a Path to Ownership

The dream of homeownership has always been a cornerstone of the American Dream. But for many, skyrocketing housing prices and financial barriers have made it feel unattainable. That’s the gap Divvy Homes set out to close. Founded in 2017, this rent-to-own startup gave thousands of families a new path to owning a home.

Now, Divvy Homes has reached a significant milestone in its journey: it’s being acquired by Brookfield Asset Management for roughly $1 billion. This acquisition not only underscores Divvy’s success but also highlights the growing importance of innovative housing solutions in today’s market.

A Visionary Solution

Divvy Homes was built on a simple yet revolutionary idea: bridge the gap between renting and owning by allowing renters to build equity in their homes. For families who might not qualify for traditional mortgages due to limited savings or credit challenges, Divvy provided a stepping stone.

Here’s how it worked: Divvy purchased homes outright and leased them to customers. A portion of each monthly payment went toward eventual ownership. Over time, renters could save enough equity to either purchase the home outright or move on with their savings intact.

“Our mission was to make homeownership accessible to people who had been shut out of the market,” said Divvy CEO Adena Hefets. “We wanted to redefine what it means to rent and create a true pathway to owning a home.”

The Road to Success

Over the years, Divvy Homes expanded its footprint across major U.S. markets, helping over 5,000 families take steps toward homeownership. The company’s innovative model caught the attention of both customers and investors, raising more than $1 billion in equity and debt funding from prominent backers, including Andreessen Horowitz, Tiger Global, and Caffeinated Capital.

However, the path wasn’t always smooth. As the housing market experienced turbulence and rising interest rates, Divvy faced increasing scrutiny about its long-term sustainability. But the company’s commitment to its mission and ability to adapt helped it weather the storm.

A Billion-Dollar Acquisition

The announcement of Brookfield Asset Management’s $1 billion acquisition of Divvy Homes marks a turning point in the company’s journey. For Brookfield, the deal aligns with its strategy to expand its residential real estate portfolio.

Brookfield, one of the largest alternative asset managers in the world, saw Divvy as more than a business—it saw a mission-driven company with a proven model for tackling the housing affordability crisis.

“Divvy Homes is not just a company; it’s a movement,” said a spokesperson for Brookfield. “We’re excited to help scale this platform and bring the dream of homeownership to even more families.”

The Legacy of Divvy Homes

For Adena Hefets and her team, the acquisition is a bittersweet milestone. While the sale represents a massive win for investors and employees, it also signals the end of an independent era for a company that changed the way many people think about renting and owning.

“Our goal has always been to make a meaningful impact on people’s lives,” Hefets shared. “We’ve done that, and now, with Brookfield’s resources, Divvy can help even more families achieve their dreams of homeownership.”

Looking Ahead

As Divvy Homes transitions under Brookfield’s ownership, the company’s impact on the housing market remains undeniable. It has demonstrated that innovative approaches can provide real solutions to the nation’s affordability crisis.

For the families who’ve benefited from Divvy’s program, the company’s legacy will live on in the form of keys handed over, homes purchased, and dreams realized.