In American cities, the old has become new again. People move in with random people to save money and maintain a higher living standard than they would have if they stayed alone. They call it “co-living” this time.
According to sharedeasy.club’s article about coliving, this type of accommodation entails renting rooms in dorm-style buildings with shared living spaces, and other amenities. Though there are several major differences, this is remarkably similar to the far less flashy habit of “having roomies.”
Electricity and WiFi are provided in co-living settings, as are a variety of services such as housekeeping. These units are frequently furnished and do not require extended leases, with billing and repairs handled via an app. For the time being, co-living businesses are mostly creating spaces in locations with a high concentration of tech employees. Also, they regularly use the terms “community” and “technology” in their advertising language.
But What’s The Craze About Co-Living?
While co-living will never completely replace traditional roommate arrangements, it is growing in popularity. This is because, in recent years, a variety of socio-economic reasons have made co-living appealing to urban dwellers — and investors.
In the US, housing costs are exceeding salaries, so paying for housing is taking up a larger amount of income. The problem has only gotten worse as people continue to flood cities. Greater demand for limited housing supply has prompted rent prices for all types of homes to soar in popular areas.
Furthermore, with school loans and a lack of upward mobility, youngsters are remaining unmarried longer and starting families later. This implies that there is less motivation to buy a home – even when they could afford one.
There are social reasons, too.
Co-living spaces are springing up in tech hubs like New York, Seattle, and San Francisco, and it’s no mistake. Co-living is often perceived as — and is sometimes marketed as — a cure to the solitude that comes with our ever-increasing tech-enabled lifestyles.
We all know that loneliness is a major issue among young professionals. Picture yourself in a new place, starting a new career, and knowing no one, how’s that? Exactly. Co-living gives you access to an immediate sense of community and connections. They also provide community activities where members can connect, have fun, and form genuine bonds.
Millennials are passionate about having new experiences. And they are bound to get that when they live with others.
Co-Living: Is It Worth It?
Co-living, like so many other aspects of technology, is an ancient concept wrapped in a slick new package. This has long been the case, whether in boarding houses in developing nations or multigenerational households around the world.
However, whether or not co-living renters are getting more or less for their money depends on your point of view. The cost of co-living varies based on privacy levels and amenities. But in general, co-living spaces are mostly the same as market rates in terms of pricing. Since more spaces are shared, the owners make more money p/sq foot than they would have from traditional housing.
On Wall Street, a one-bedroom home costs roughly $3,900 per month, while a studio apartment costs around $3,200 (both include small living, bathrooms, and private beds). That’s nearly the same as the neighbourhood’s median one-bedroom apartment price: $3,330. Meanwhile, a suite with a private room, a shared bathroom and other housemates in Williamsburg starts at $2,150. A full one-bedroom apartment in other parts of Williamsburg costs a little more, at $2,900. Many co-living businesses charge 10-20% less for bedroom apartments than studios with equal amenities in the same areas. Others offer accommodations that are 30% less expensive.
Typical roommate setups, in which multiple people share a multi-bedroom house, can be significantly less expensive. Renters must, however, handle some of the more difficult aspects of living with friends (or strangers). These include finding and assessing potential roommates, sharing utilities, and cleanup of the shared spaces.
Although they can be small, co-living spaces are of a high standard and are less expensive than full-fledged luxury flats. The size of the room and apartment vary according to the company and region. But they often provide less personal space compared to a conventional apartment. Popular co-living spaces include rooms that are between 120 and 140 square feet in size. To put things in perspective, the average size of a studio in a large US city is 500 square feet.
The benefits of co-living are appealing to tenants. They can afford higher-quality services and amenities — gyms, house cleaning, and laundry — than they could if they didn’t split the expenditures. The communal areas are frequently finer than what a single tenant could afford.
App-based payments and extendable leases are also advantages for folks who are both time-pressed and well-heeled. Co-living companies also offer intangible services like “authenticity” and “community”, the worth of which is determined by the value you place on them.
Would Co-Living Last?
Co-living appears to be realistic in light of the aforementioned socioeconomic changes. But whether it will expand beyond a limited market in the United States remains to be seen.
Co-living could theoretically address the issue of housing affordability. It’s however not for everyone with the present high-end pricing points.
Smaller living quarters are common, particularly in Asia, where urban density is often higher than in the United States. For example, Hong Kong’s studios are typically around 200 square feet (less than 50% of a standard New York studio). As a result, Asia has a far more developed co-living tendency.
It’s personal and complicated how people actually live and spend their time. Still, massive shifts in our willingness to survive have occurred in the United States before. Consider how, a few years ago, people felt Airbnb’s concept of letting strangers stay in your house was creepy? It is now well recognized as a proper competition to hotels.
And, in order to be a successful industry, co-living doesn’t need to expend all that much.
Conclusion
Traditional rental properties are more difficult to find, register, and settle into than coliving spaces. Coliving spaces are made to provide people with quick access to already-furnished rooms for rent, as well as fantastic housemates and a large community.