Cushman & Wakefield’s coliving report examines the thriving multifamily subsector and how it’s emerging as a niche asset class.
Millennial homeownership is down. Many rent and approximately a third of them are living at home but an increasing subset is embracing the hottest new trend: Millennials are coliving.
Coliving is a type of intentional community of housing where multiple people share a single home with shared areas such as bathrooms, kitchens and living rooms as well as other amenities. Major operators in the space currently have 3,700 beds with another 9,300+ in the pipeline, with a high concentration in New York, Los Angeles, Chicago, Boston, San Francisco and Washington, DC.
Common, based in New York, is the largest coliving operator in the U.S. with 700 beds in 25 properties across cities. There are two Common homes locations in Los Angeles, one on Melrose Avenue and the other in Echo Park, with prices ranging from $1,550 and up with amenities including free laundry, utilities, household essentials, professional cleanings, and Wifi under one all-inclusive rate. The average age of Common’s tenants is 29.
Tenants who choose coliving do so for a variety of reasons, including flexible lease terms as well as a sense of community belonging and inclusion. These tenants are technology driven and enjoy the operating systems that coliving facilities provide. Amenities like advanced security systems and phone applications (for billing and maintenance requests) are a must for a modern renter.
“The way we live is changing,” said Susan Tjarksen, Cushman & Wakefield Managing Director. “Goals of homeownership and a suburban lifestyle have given way to more urban and communal preferences for those entering the workforce. Coliving options will become more ubiquitous with recent college graduates seeking to join a community and learn about a city that they are living in for the first time. As new generations enter the rental market, preference will be centered upon coliving brands that provide convenience, affordability and a vibrant community.”