The start of the 20th century was met with an influx of immigrants from around the world who traveled to New York City and other metropolitan centers in search of financial opportunities and to escape the hardships they endured. Many turned to co-living in order to reduce their operating expenses, allowing them to one day rent or own their own apartment or home. Fast forward to present day, we see that the world of co-living continues to be a popular option for those seeking the benefits of cosmopolitan areas while remaining in
Co-living uses space more efficiently. For example, certain developers are opting to create spaces with only one kitchen and bathroom for multiple people. The daily operations of co-living spaces are designed to meet the needs and preferences of millennial dwellers. For example, these spaces operate on a plug-and-play model which allows millennials to focus on other aspects of their life rather than the responsibilities of daily house maintenance and similar issues. Millennials can also avoid the hassle of furnishing common spaces and engage with a community of residents through events and organizations as orchestrated by the complex. Further, short-term lease options offered by certain co-living spaces offer young entrepreneurs and millennials the flexibility to move as their work demands.
Public entities are also realizing the widely growing popularity of co-living spaces. The New York City Department of Housing Preservation and Development is expected to announce a pilot program known as, “Share NYC” that will allow developers to view for public financing and create a more affordable version of co-living/dorm-style living arrangements. Share NYC will be an opportunity for low-income renters to reap the benefits of shared living spaces. As reported in the New York Times, the units will vary in design, but will likely run between 150 and 400 square feet per bedroom. They may or may not have private bathrooms and will include
As reported in Forbes, many companies and developers/owners are renting single rooms within an apartment to property
Another tier consists of companies like Property Markets Group (PMG) that both manage and own the property. PMG, best known as a conventional real estate developer, plans to build 3,500 U.S. co-living units comprising more than 7,000 bedrooms under the “Peg” banner.
One of the first developers to get into this market
While the benefits are clear to those who opt to live in co-living spaces, difficulties arise from a management standpoint when it comes to securing permanent financing, and short-term leases by tenants. Management co-living companies may also have new competition with a trend by owners who plan to enter the market and begin leasing apartments for co-living on a direct basis.
While the concept of co-living is not a new one, you can expect the rapidly continued growth of this housing arrangement as it meets the personal and professional preferences of the younger generation.