Is Co-living the next big thing that will reshape the multi-family real estate market? We examine it’s benefits.
How the shared economy will change multi-family real estate starts with the concept of Co-living. It is a style of living that combines individual space with shared amenities and communal space. If you are one of the many people that thinks that few people will buy into this concept of living, other than millennials, take into consideration the following strong points.
- Co-living is already here. In cities like Brooklynn, NY and Saratoga, WA. Companies like Common, WeLive and Commonspace are combining private living space and communal space for a experience is more along the lines of hotel or luxuries apartment living. The units are already furnished, even the sheets on the bed are provided and utilities and included in the rent. As an adherence to the shared economy platform these companies offer Apps that allow for tenants to get in touch with property managers and voice maintenance request. It is a big part of what makes the shared living space work. Everything from tea and coffee to paper towels are included in the cost of living.
- From some, there is an attractiveness about concept Co-living. It’s because it is a no hassle lifestyle choice. There are no utilities bills to pay. Cleaners are provided to clean common area space. There is no furniture to move or buy. It is as if you are living in a hotel that you call home.
- The shared economy has infiltrated our lives. Ten years ago the idea you would jump into a strangers car to get where you need to go would have seemed dangerous and absurd. Now is it common place. So common that companies like Uber and Lyft have, in some cities, made cab companies obsolete.
- The real estate industry is too big to be missed. Companies like Airbnb and VRBO have proven the concept that people are willing to share their homes with strangers. Is it that big of a stretch to think that they will share some common space living with them as well?
- Co-living has the opportunity to solve a big problem in cities across the country- housing. Co-living could offer a solution to affordable housing and even half-way/homeless housing because shared kitchens and living rooms means less space is needed in individual units for basic amenities. It could cut down on new building cost and cost to reposition older building.
- The possibilities are there to take the concept and apply it to a larger audience. Flexible lease terms is appealing for companies looking for housing solutions for employees traveling from city to city.
When you consider the cost of living in most major cities- it make sense that people will be looking for alternative living situations. Zillow report that more adults are living with roommates now than since early 2000. With the cost of living increasing and wages not keeping up, it is possible that you will see more alternative ways of living. Co-living and the shared economy has the ability to change how many people live.