You may have already heard of co-working, but did you know, it has a younger cousin?
Co-living is new on the scene in most major cities in the US, and puts a domestic spin on the multi-person model.
Co-living is essentially similar to the co-working model: a group of people shares common areas like the living room and kitchen. The differences are only apparent at the end of the day; instead of packing up and heading out of the office, each person returns to their own bedroom and often, private bath.
Sound familiar? Co-living might be a modern term, but people have shared common spaces for centuries.
The co-living system preserves the best aspects of the traditional multi-roommate model; group costs like water, gas, and electricity are divided amongst tenants. However, there are some major distinctions which elevate this concept’s style and furthermore, its profitability margins.
Dedicated co-living buildings often offer other amenities not found in traditional multiperson apartments such as property-wide WiFi, elite fitness facilities, and deluxe pools and spas at a more affordable price than traditional complexes or condominiums.
Co-living apartments are also often fully furnished, further reducing the cost and stress of traditional moving.
The co-living model increases the efficiency of running a multiperson household, and the money saved is recycled into better amenities for the group as a whole.For investors, it is important to note that the aforementioned structure maximalizes returns. The design of these new spaces increases occupancy numbers without increasing construction cost. The Co-living buildings are densely-populated and it’s no secret, the more tenants renting, the greater the profit.
Co-living is flourishing nationwide and these new development projects are in-demand for their chic, fashionable appearance.
The Co-living spaces often look more like hip hotels than traditional, drab apartment buildings. Philadelphia, for example, will soon see a chic, six-story modernist co-liviing complex thanks to a 300 million dollar country-wide investment by Quarters/Medici, a company which already operates successful, lucrative spaces across the country.
Medici’s all-inclusive, single-price model has already taken off in New York, Los Angeles, Washington, and Chicago and its expansion into the Philadelphia market will offer great diversity of housing to the city’s residents, particularly to working Millennials, a generation accustomed to sharing everything from cars to cat-sitters.
Like Millennials, co-living spaces are also inherently social, designed to maximalize conversation and ideaflow. They tend to attract likeminded individuals who seek to know their neighbors. The idea behind the architecture is to make personal contacts in the global-social world. Tenants of co-living buildings know the importance of networking and value a shared living space which facilitates this.
The shareconomy has influenced all aspects of life and co-living is a clear extension of this new way of life.
It’s clear that co-living isn’t just a trend but a lifestyle embraced for its contemporary simplicity and unique access to luxuries at an affordable price. Co-living is a highly attractive model and its profitability has been proven for both landlord and tenant. This financial advantage will likely make co-living the most popular model of property in the forthcoming decade.