The Rise of Co-Living Investments

[Ahmed Alswaiti]

Urban centers in the US have been witnessing some paradigm shifts in the real estate investment landscape. Co-living spaces have been trending recently more than ever before. I will be discussing the growth of co-living investments and their potential to redefine urban living and real estate investment strategies in the nation.

For those who don't know, co-living is a modern form of communal living where residents share living spaces while retaining private bedrooms. It is gaining demand in big populated cities like New York, San Francisco, and Chicago. Co-living solves affordability issues, fosters community, and meets the lifestyle preferences of millennials and Gen-Zers. 

Some investors find co-living a good opportunity to capitalize on the high demand for affordable and flexible housing solutions. The reason behind that is the thriving amidst the urban housing crunch, which offers higher occupancy rates and yields compared to the traditional rental models. Investors are noticing the strong market demand for co-living within their properties, as some Chicago investors witnessed a 95% increase in occupancy rates within a month or two.

If you wonder why investors are drawn by the co-living concept, this is because it maximized the use of space and caters to a growing demographic of urbanites seeking community and convenience, as well co-living properties often command higher per-square-foot rents than standard apartments. Additionally, the scalability of co-living models allows for diversification across markets, mitigating risks and promising sustainable growth. In Columbus, OH, a recently launched co-living complex has become a case study in success, by achieving full occupancy ahead of schedule and generating buzz for the innovative amenities and community-focused design. Similarly, in Denver, a co-living startup has successfully attracted significant venture capital funding, highlighting investor confidence in the model's scalability and profitability.