2025 Co-Living State of the Union

Introduction

Over the past two decades, I’ve had the privilege of witnessing and contributing to the evolution of the Co-Living industry. From its early days to its current state, this sector has been a game-changer for renters and investors alike. As someone who has been in the industry since 2000, I’ve seen firsthand the triumphs, challenges, and innovations that have shaped Co-Living. Here’s a comprehensive look at where we’ve been, where we are, and where we’re headed.

The Rise of Co-Living: A Brief History

Co-Living, as we know it today, took its first major step in 2003 with the popularization of the one-person lease. This shift set the stage for what would later become a thriving industry. However, it wasn’t until 2012 that Co-Living truly began to take off, with the launch of Ollie—the first major company to make waves in this space. Their pioneering roommate-matching software set a new standard and laid the foundation for future players.

From 2015 to 2018, the industry saw rapid growth with the emergence of companies like Common, Starcity, and HubHaus. These companies attracted substantial investment and expanded quickly. However, as is often the case with high-growth industries, not all companies were able to sustain their momentum. We saw the collapse and acquisition of major players like HubHaus and Starcity, offering valuable lessons in sustainability and operational efficiency.

Challenges and Successes: Navigating the Co-Living Landscape

Like many industries, Co-Living faced a significant test during the pandemic. While some companies, such as Common, struggled to stay afloat and ultimately shut down by 2021, others proved remarkably resilient. Livingsmith, for example, maintained 100% occupancy throughout the crisis, demonstrating that strong business models and adaptive strategies could weather even the toughest economic storms.

Legislative trends have also played a pivotal role in the evolution of Co-Living. In 2023, we saw a shift in occupancy regulations, with cities like Austin and the state of Colorado in 2024 embracing higher-density housing as a solution to the ongoing housing crisis. This policy evolution signals growing recognition of Co-Living as a viable, scalable solution to housing shortages.

Current State and Looking Forward

As we move into 2025, the Co-Living industry continues to evolve. Padsplit’s recent expansion to Denver in 2024 highlights the enduring demand for affordable, flexible housing options. While the bankruptcy of Common serves as a cautionary tale, it also presents an opportunity for the industry to refine its models and innovate.

Despite the ups and downs, the core principles of Co-Living—affordability, efficiency, and community—remain more relevant than ever. For investors, the model continues to offer compelling returns, while renters benefit from increased flexibility and social connection in a rapidly changing housing market.

Conclusion: The Future of Co-Living

The journey of Co-Living has been anything but linear, but its impact is undeniable. As someone who has navigated this industry for over two decades, I firmly believe that Co-Living is not just a trend—it’s a necessary evolution in urban housing. By learning from past missteps and adapting to shifting market demands, we can continue to refine this model and unlock even greater opportunities for renters and investors alike.

Whether you’re looking to invest, find a new place to live, or simply stay informed about the future of housing, Co-Living is an industry worth watching. The next chapter is still being written, and I’m excited to see where it takes us.