Co-living has become a widespread phenomenon throughout the world. This sharing economy involves housing complexes and communal arrangements that can benefit its occupants. Most of these living arrangements offer fully or partly furnished bedrooms, bathrooms and living rooms. Co-living spaces are coming up on every turn especially in places like Brooklyn and Manhattan, as well as Bali and San Francisco. Each company that decides this is the business for them, has the opportunity of defining what they feel co-living should look like, and offering the luxuries and services that they see fit.
Why Co-living Is Booming
Co-living offers flexible leases and furnished apartments and a host of amenities that people would love. The broader mission of co-living is to solve every major need of individuals. Research shows that by 2050 two thirds of the global population will be living in cities and this means that more than 6 billion people will need housing. There is a need for new iterations on co-living concepts to meet the needs of the population in the 21st century. Co-living spaces that are available today is a mere draft of what is to come in the years ahead. A change like this proposes a new opportunity for entrepreneurs. A new model for living that meets the needs of this current generation must be introduced if one is to become successful.
In Brooklyn, an apartment named Baltic recently opened their 140-person building to co-living and has begun leasing out their studio and one-bedroom apartments. The building sees an average of 300 applicants in their buildings each week.
The driving force behind co-living is that millennials with a lesser income will be able to experience communal living without paying too much for it. The costs average between $1000 and $3000 per month depending on the neighborhood. Co-living is about community and building relationships between those who occupy the same living area. This is one of the main reasons co-living spaces are attracting millennials. They can range from luxurious to basic and often offers the same benefits as a hotel at a much cheaper rate. These lease agreements are flexible and non-committal.
Different Types Of Co-Living Models
Wallet friendly co-living includes pod sharing which is like a hotel or pod hotel. Individual pods or custom bunk style bed areas with their own TV, outlet and light. These pods are lined up and offer little to no privacy for the individual. The only doors are found on toilets and showers which allows people to interact and get to know each other. This type of living is ideal for students and nomads. The pod share concept was founded in 2012 in response to the high and low income housing crisis in Los Angeles. Membership is available in a half day or full day pass and appeals to most travelers as they enjoy the experience. You can get a pod for around $40 a night and this fee allows you access to the co-working space as well.
On the other hand, there are luxury options for co-living like Hollywood Proper Residences in Columbia Square, LA. Rooms are available furnished and unfurnished and occupants can communicate with the community manager via an app, to find out about cultural events. Amenities like the pool, bar, yoga classes, fitness centres, and various other entertainment is available to the occupants. This trend of co-living experimentation is a step toward luxurious living for people who would otherwise not be able to afford it. You still get to enjoy the benefits like no contracts and get to meet different people, often much like you. Co-living allows people to be part of and belong to a community without having to sacrifice the five-star amenities they like.
Is Co-Living A Lucrative Business?
Not all co-living spaces have been successful in the past however, this is dependent on the area that you choose to invest. In time, it will evolve into an economically viable business. There is a growing acceptance of shared spaces among people. It offers travelers a cheaper alternative when traveling to other cities and offers people a safe and secure place to crash while on business trips. It could be a good option to people at all levels and stages in their lives. It allows people to interact and become more accepting of others and in some cases, places like-minded people together in the same space. In the future, co-living will be making its mark as more and more people place importance on saving money on accommodation and enjoying the experiences around them. For those people wanting to invest in property of this kind, there is great risk involved but with the risk comes an opportunity that should not be missed.