- Developers are targeting more affluent demographics for co-living developments
- Co-living developments appeal particularly to Millennials and Gen Zers
- Co-living developments are growing more options
Some of us of “a certain age” may look at co-living developments as the “same old thing” we did while living at college, not as the “new, next thing” in real estate. You know…we essentially rented a bedroom in a multi-family style building while we shared a kitchen and often a bathroom as we shared communal spaces and workspaces.
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Not much has changed in co-living developments except that many co-living residents are older than we were while we were in college. And the people attracted to co-living developments are Millennials and Gen Zers who are being priced out of more traditional rental and/or single-family units.
According to a recent report by Cushman Wakefield entitled “Is 2019 Co-Living’s Moment?” developers of co-living housing arrangements are, in fact, targeting Millennials and Gen Zers for a variety of reasons:
- Young professionals are increasingly feeling the lack of affordability in housing
- Student loan debt has increased +157% between 2008-2018
- The average alum of a four-year college/university is +$37,000 in arrears due to student loan debt
- In Chicago, a renter could save $400/month in a co-living situation instead of paying the typical $1,600/month in rent
- In Boston, co-living renters save as much as 25% on rent
- Residents in co-living arrangements feel safer
- Residents in co-living situations feel less isolated
- 46% feel alone some of the time
- 47% feel “left out”
- 43% believe relationships lack meaning from time to time
- 31% of Millennials are accustomed to living with roommates they didn’t previously know
- 43% of Gen Zers are accustomed to living with roommates they didn’t previously know.
And, investors are taking notice of co-living developments and are, in fact, growing more co-living options as affordable housing options grow more sparse.
- The Collective raised $800M in a recent funding round in order to open a co-living development in London with 705 units in early 2020.
- Common is partnering with Tishman Speyer to launch Kin, a co-living development for families.
- Node is appealing to the late 20’s – 30’s demographic who are earning no less than $70,000/year.
Thanks to InmanNews’ Michael Zaransky and Cushman Wakefield for source data.