Co-Living is the latest emerging trend in multifamily living today.  The rise of Uber, Airbnb, coworking, and the on-demand economy has given rise to Co-Living or Housing As A Service (HAAS).  The mobility of today’s young professionals, combined with the prioritization of experiences over things, has resulted in a demand for the need to re-think housing.  Co-Living answers that call by combining furnished units and all-inclusive hotel-style management, with tech-enabled, apartment communities.  Read on to find out more. 

The real estate community has heard about rising isolation, a lack of affordable housing, and climate change for years.  The rise of Co-Living allows for real estate professionals to begin to provide solutions to these intractable problems. The question is how?

Major cities across the globe have grown exponentially over the past 10 years and will continue to do so for the foreseeable future.  As Millennials and Baby Boomers move to the city, a break in ties to their previous communities occurs.  Also, as adults we have limited opportunities to create new friendships due to long work hours, commute times, and family responsibilities.  Finally, our technology focused, social media lifestyles have only increased our isolation.  We are literally surrounded by strangers in the city.

This dire situation is addressed through Co-Living.  The creation of community and new “family” units in Co-Living properties brings together like-minded individuals.  These groups share resources and experiences in Co-Living communities.  An app allows members to post their interests, schedule events, and join in the conversation about what matters most to them.  This creates a new kind of tribe.  

Affordability is a severe challenge.  Rents in cities like San Francisco, New York, Boston, Chicago, and other cities have spiked to record highs on an annual basis since the 2008-2009 crisis.  Co-Living provides an affordable solution to living space for busy professionals.  Through sharing resources, such as utilities, Wi-Fi, key household items, and amenities, a lifestyle previously thought to be out of reach is made affordable.  Rents for bedrooms in Class A Co-Living suites tend to be 10-20% cheaper than studios at similar conventionally managed properties.  For owners, due to increased bedroom density, rent yields per sq. ft. tend to be 30% higher on average.  

Climate change is a major, global issue.  We have witnessed the impacts of climate change over the past 10-20 years through major floods, hurricanes, and natural disasters.  The stewardship of our planet is one of our most important responsibilities as humans.  New construction and the operation of buildings are two of the most impactful human activities on our environment.  Through Co-Living we can reduce our environmental impact by reducing demand for housing.  Additionally, the sharing of resources, such as utilities, further reduces our carbon footprint.

Co-Living provides a readily available solution to so many problems…so what exactly is it?  It is a new way of living that enables us to live happier, more productive, and more connected lives.  The key piece is the active management of the community.  This requires a higher level of service than typical multifamily communities and is not found with most multifamily property management providers.  Hotel-style service and contemporary design create an environment like that of a boutique hotel.  In a true Co-Living community, you should be able to just bring your personal items, clothes, and maybe a toothbrush.

Co-Living Should Include:

• Participatory living
• Furnished apartments
• Free Wi-Fi and utilities 
• Weekly community events
• Technology enabled/connected – chat, events, social profiles, etc.
• Regular cleaning and concierge service
• Like-minded individuals
• Private space

Co-Living Should Not Include:

• Passive living
• Multiple bills to manage at home
• Roommate issues
• Major drama

Co-Living communities will continue to grow given the massive shift in institutional investment over the past three years.  There continue to be opportunities to create new ground-up and existing property re-positions in major markets due to a lack of supply.  

Partnerships between developers and Co-Living operators continue to be a good option, but getting an operator involved early in the design and permitting phase is crucial for success.  Due to this being a new type of product many municipalities have limited knowledge.  Designers with Co-Living experience are also important and should be involved early as they can contribute significant value to the development team.  

Given the rise of this product type over the past 2-3 years many Co-Living operators, both large and small, have recently started-up.  Some of the bigger Co-Living operators include Common, The Collective, and Ollie.   

To learn more about Co-Living and connect with us at Co-Locale visit www.co-locale.com.   

Co-Locale is a tech-enabled Co-Living property manager and developer.  We embrace the shift away from today’s passive apartment living, to an elevated Co-Living lifestyle.  We are committed to creating communities with partners that are built around our shared values: 

1. Community Inclusiveness and Diversity 
2. Sustainability
3. Wellness

We collaborate with owners and developers to boost yields and create awesome, tech-enabled Co-Living communities.  Our market-leading expertise in managing Co-Living has helped our real estate partners achieve significant financial and operational improvements in their properties. 

Today we are expanding our footprint in Boston, San Francisco, New York, Washington D.C., Raleigh/NC Research Triangle, and Tampa/St. Petersburg, FL.  Contact us today for more information at info@co-locale.com or call us at 508.686.6079.

Want more on Co-Living? Be sure to stay tuned for an upcoming episode of The Big Dig Podcast set to highlight the upcoming Co-Living project, 7Ink by Ollie.