Get All Access for $5/mo

Tech Workers Are Paying Up to $900 a Month for Tiny Bed 'Pods' in San Francisco Despite the high cost of a box with a bed, the company claims booking are at capacity in October.

By Nathan Rennolds

Key Takeaways

  • Startup founders are paying up to $900 a month to stay in tiny four-feet tall bed "pods."
  • The tiny spaces only fit one twin bed, run on monthly contracts, and don't need a deposit.
  • Residents have to share five bathrooms and some common areas but there's no kitchen.
Brownstone Shared Housing via Business Insider

This article originally appeared on Business Insider.

Tech workers are paying up to $900 a month to stay in tiny bed "pods," small boxes made of wood and steel just four feet high.

The pods, which are made by Brownstone, can only fit one twin bed, and those staying will have to make do without a full kitchen or laundry machines while also sharing five bathrooms.

The bed pods are arranged in are stacked two-high in dorms, and they run on monthly contracts and don't require a security deposit.

One resident, tech startup founder Christian Lewis, who created the AI firm Spellcraft, said the tiny spaces got a "little toastie," but he had enjoyed a restful eight-hour sleep. He and others trying to launch AI careers in San Francisco praised the accommodation in an interview with ABC 7 News, particularly for the networking opportunities they offered with other pod-dwellers.

Brownstone had its first customers this summer, its CEO James Stallworth told SFGATE, adding that it currently rents out the spaces for $500 in Bakersfield, $700 in San Francisco, and $900 in Palo Alto.

"Our private beds have 40% more room than typical bunk beds, and come with individual lights, privacy curtains, temperature-controlled fans, and other essentials," the company's website says.

"In addition to your own private bed, you get keyless entry to the house in an amazing location, access to a full kitchen, and fully furnished common spaces such as a living room and shared office room," it adds.

Stallworth said that the company has had a lot of inquiries from people who are interested in AI.

"Going into the house, we just knew there were a lot of reasons to be in San Francisco," Stallworth said. "It turns out AI is currently what a lot of people are doing," he said, per SFGATE.

San Francisco.

San Francisco skyline. Alexander Spatari/Getty Images via BI

Despite the high cost for a box with a bed, he said that they will be at full capacity in October, with all 28 of the pods taken.

Rent costs in the tech hub city of San Francisco are sky high, with the median price of a studio apartment at $2,200 a month, per real estate marketplace Zillow.

Lewis, shared photos of his experience in one of the pods on X, formerly known as Twitter, earlier this month.

"People are getting bitchy but I'm not sure what for. I'm just trying to stay within the city of San Francisco without paying $4,000 a month or getting stabbed, and I think this is a great solution so far," he wrote. "There's a lot of cool people here too."

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Side Hustle

This Former Starbucks Employee Started a Side Hustle That's Making More Than $70,000 a Month — and He's Not Done Yet

When Tom Saar moved to New York City, he spotted a lucrative business opportunity.

Business News

Is One Company to Blame for Soaring Rental Prices in the U.S.?

The FBI recently raided a major corporate landlord while investigating a rent price-fixing scheme. Here's what we know.

Business News

Amazon Has a Blank Book Problem: Buyers Report Receiving Fakes of Bestselling UFO Book

The book looked fine on the outside, but the inside was out-of-this-world.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Business News

Paramount Leadership Alludes to Layoffs If Merger Does Not Go Through

Paramount is awaiting approval on its merger with Skydance Media from majority shareholder Shari Redstone.

Marketing

6 SEO Tips to Help You Rank in the New Era of Quality Content

What is the best SEO strategy after Google's March 2024 core update? Here's what you need to know.