Coliving (Communal living) has been here for a long time. Basically, we date it from the 20-30 years of the last century. But at that time it was not a very free choice. People did not have enough funds to live alone and thus had to live with their families. For the most part, however, it narrowed down to whole families who had lived under one roof for generations. Especially when the great crisis came.
When the effects of the Great Depression passed and people began to live better, in the 1950s and 1960s, it was quite normal for people to be able to earn or borrow to buy their own apartment or house. This set a trend that lasted until recently. Then again, as a result of the crisis and the rise in interest rates and mortgages, young people often do not have enough money to be able to buy real estate and become independent.
However, the desire to live together or simply become independent has remained in people, and it can be assumed that this is why modern Coliving arose. So in Coliving, as we know it now, people who don’t even need to know each other, live together in one apartment and share common areas such as the kitchen, living room, laundry room, dining room and so on.
The truth is that, according to a new survey, up to 31% of the US adult population in 2017 shared housing with someone with whom they have no family relationship or love relationship. It all started mainly with students who for some reason did not stay on campus. Coliving is still mostly associated with millennials and people aged 25 to 35. However, this does not mean that this type of housing is intended only for them. This target group is only the target because it has the most potential. The truth is that Coliving is used by people of all ages and from different walks of life.
The current development of the company is aimed at more and more people working from home. Home-office is becoming a regular part of work and companies are becoming more and more aware of it. People can work from literally anywhere and companies do not have to pay large office space rentals. This will reduce their expenses and increase their profit. In the last year alone, the number of home-office employees has increased by almost 100% compared to what it was the previous year, and Coliving is just right for the home-office.
Another survey confirmed that in the United States, by the end of 2019, there were already more than 5,000 beds in about 150 modern properties. Although it is a relatively small number, it still represents a phenomenal growth compared to previous years. A few years ago, there were only a handful of Coliving properties. However, the overall interest in this new real estate industry is huge, although the real estate inventory is not yet extra-large, and despite the fact that Coliving is located mainly in large cities such as New York, California, DC, Seattle or Los Angeles, it is slowly but surely getting to smaller cities. Therefore, it can be expected that Coliving will soon be a common part of not only every large city, but also of a smaller one.
Professional Coliving companies have recently received tens and hundreds of millions of dollars from investors who have noticed an exponential increase in interest in the industry. The vacancy rate is only around 3% and there is a long waiting list for many units. That is why investors are in competition as to who will build a larger Coliving company.
We already know that next year, thanks to investments, the number of beds will increase by at least 55,000. Although it is still a small number, compared to demand, it is still one of the largest growths in the economy.
Coliving is a new gem for investors and this type of business will certainly experience much greater growth in the coming years. If you want to learn even more about Coliving, read an excellent article about co-living spaces.
Coliving companies attract new tenants in different ways, but especially through the equipment of apartments and entire Coliving complexes. Things like high-speed Wi-Fi, new appliances and beautiful, high-quality furniture are just the pinnacle of it all. Some Coliving complexes offer, for example, their own café, swimming pool, gym, wellness, library, study room, or free laundry service. All this attracts not only young people and millennials, but also people who love an active lifestyle and are interested in meeting new people.
Given that the price of individual rentals is constantly rising every year, it is more than likely that the Coliving market will continue to grow at a wild pace in the coming years. This is confirmed not only by the above-mentioned interest of investors but also by the attitude of banks and non-banking companies to loans for the purpose of creating Coliving real estate.
The growth of Coliving is clearly seen in the competition. In recent years, there have been few Coliving companies. Today we see a big increase in the number of companies that deal with this. Companies are ahead and trying to be exceptional in this business. They try to achieve this with various tweaks that we wrote about above. Every Coliving company strives to be innovative in something, and that is what is constantly moving this market forward.
In addition, Coliving has a high profitability without affecting the end users. This fact is one of the main interests of various investors.
In principle, it can be said that with the development of technology and the “home office” lifestyle, more and more people will want to travel, meet new people and live a more active lifestyle. Thanks to Coliving, they can live this life very easily.
Coliving contracts are simple and the main ones flexible. Short-term accommodation is becoming more and more used, and if you take into account the price and what the tenant gets for that price, then it is a clear choice for most people.
There is no doubt that Coliving is a new gem in the real estate business, and as this market evolves, we can look forward to a huge increase in Coliving around the world.