As a junior, I lived in the Creative Writing Theme House at Agnes Scott College. A beautiful five-bedroom house just outside of campus gave students an opportunity to live and work with like-minded peers. I loved the experience: group meals and activities, weekly poetry readings, and the ability to workshop my short stories with people who “get it.” Too bad I wasn’t a business major. Then I would have seen the coliving trend coming and profited from it. But the experience did successfully foreshadow the pitfalls of coliving. Multifamily property managers, take note. Coliving is trending and is likely here to stay. By avoiding the pitfalls of your competitors, you can optimize your profits for years to come. What is coliving? Coliving is all the rage in multifamily housing. It combines the best aspects of Airbnb’s short-term rentals and city experiences. Coliving quarters include furnished private studios and multi-person shared flats. Depending on the level of luxury, there are private or shared bathrooms. Common areas usually include the kitchen, laundry room, and exterior spaces. Flexible rents make coliving spaces different than dorms or apartments. Yet the key differentiator in the industry is the themed living. Coliving communities unite like-minded renters. Participants are often professionals in a similar field, people interested in exploring a neighborhood or city, or less tactile themes like inclusion. Yardi client Cushman & Wakefiled recently released a detailed national report on coliving. There are a few common features that coliving properties and their residents share: Property managers within major metropolitan areas are seeing the highest demand for coliving. Such locations offer low rents near popular job hubs. The average coliving resident is in their 30s. The average median income of coliving residents is about $60,000 per year. Additionally, there are a few common characteristics among coliving residents: Digital nomads make up a notable portion of coliving residents. Remote workers want social interaction without the confines of an office. Coliving combines the best of apartment living with coworking space. People who have recently transferred to a new city see coliving as a way to make friends and familiarize themselves with the city before establishing roots. Transient employees often turn to coliving to make friends and get to know the city without committing to long-term, pricy leases. Missing the mark: finding the balance between privacy and intimacy Nationwide, surprisingly few people are interested in coliving, reports the National Multifamily Housing Council & Kingsley Associates Resident Preference Survey. Though there is a lot of hype and investment in coliving start-ups, apartment residents aren’t sold on the concept. About 69% of survey respondents said they “definitely would not be interested” in coliving. Why not? Finding the balance between privacy and intimacy is where several coliving developers have missed the mark. Take my stint in a coliving community as an example. We nine housemates valued our time together. We enjoyed cooking together and attending literary events around town. We got to know each other quite well, including dietary preferences and quirks. Unfortunately, there were frequent meetings where we nearly went Jerry Springer on each other over the messiness of common areas, noise control, and guest management. Living with strangers will never appeal to everyone. But for those who have considered the option, privacy and intimacy can make or break a coliving community. Shared bedrooms and bathrooms make it more challenging to control messes and coordinate schedules. There is a greater demand for floorplans with private bathrooms and bedrooms. Privacy resurfaces as a general concern. Sound proofing and other privacy measures in personal spaces increase resident satisfaction. Though prospects value privacy, they also value intimacy. Ideal living arrangements are between four to ten residents. Larger housing groups were perceived as less personable and less desirable. A steady flow of unmonitored guests also interrupts the perception of intimacy. A community can quickly go from cohesive coliving to frat house nightmare without proper controls in...
Coliving is Here
Why it Matters
You’ve heard about coworking, but how about coliving? Now is the time to learn more about this urban rental trend that’s gaining momentum with young renters across the country, including millennials looking to save money by sharing amenities. Not sure how this trend applies to your business? If you’re a multifamily property manager, you’ll want to keep reading. As the market appears to be headed for a downturn in the near future, flexible leasing strategies could be your best bet to recession-proof your properties and maximize rental revenue. What is coliving? Currently, coliving is mostly an urban trend with residents sharing a house, apartment or building. If you’re thinking of the kind of roommate arrangement that is the result of random pairings through online postings, think again. Today’s coliving spaces offer modernized community experiences — sometimes referred to as “intentional communities” — and often include options for more privacy and luxury, such as microsuites. Residents will usually have a private bedroom and sometimes a private bathroom. Shared spaces typically include kitchens, lounges, laundry rooms, gyms and rooftop areas for social gatherings. And while the experience is not too foreign for renters who’ve shared housing before, coliving spaces are usually cheaper than traditional rentals. For most coliving enthusiasts, the social connection is important — they don’t want to feel like they’re living in a hotel. The essence of coliving is bringing compatible renters together in one space, with an emphasis on the quality of relationships and experiences over the quantity of square footage. For single renters new to an area, coliving can provide a sense of community as they get to know their greater surroundings. For cash-strapped renters looking for great amenities or seriously swanky accommodations, coliving is the answer. And for the many young...
Multigen Living
Could it work for you?
The new report, As Rents Rise, More Renters Turn to Doubling Up, explores the growing rate of co-living arrangements. Finances were the primary reason for multiple generations and teams of adults sharing a single home. You could benefit from this trend, even if you never considered marketing your units as a co-living floor plans. Co-living Styles and Motives Co-living isn’t a recession-era trend. It has been on the rise well since the economy began to recover. The rate of co-living has increased from 39 percent to a whopping 54 percent for people ages 23 to 29. In multigenerational living, young adults team up with their parents or in-laws to form a single, cost-effective household. On top of saving on rent, co-living allows families to save on utilities, entertainment, and childcare costs. In addition to families teaming-up under one roof, the research reveals that non-familial teams formed with the same motive. To improve rental affordability, many adults double-up in housing. Without surprise, the co-living trend is most prevalent in the nation’s metros with the highest rents, particularly Los Angeles with a co-living rate of 46 percent and Miami at 41 percent. So what is the income threshold for co-living? Renters with an annual income near $30,000 or less shared homes more often than their peers with higher incomes. While that income amount varies by metro, renters that choose to share abodes tend to make about 30 percent less than renters who choose to live alone. Making Co-Living Work for You How might you benefit from the rising rate of co-renters? If you don’t permit subletting, it may be worth considering. Creating contracts for residents to use can help you remain in control while benefiting from a lower vacancy rate. Realistically, you probably have several renters subletting a...
