Millennials own less, see the whole world as their playing field, work digitally, and want to self-realize. The co-living accommodation, therefore, needs to be flexible, global, digital, and inspirational.” - Maja-Stina Skarstedt, COO of Tech Farm
Catch Me Up
By 2030, almost 9 percent of the world’s population will live in cities with 10 million or more people — that’s 20% more people than currently live in New York City. With limited space and high housing costs, alternative living methods are bubbling up in urban areas and likely to change housing as we know it. Enter: co-living, an option for people to live in trendy spaces and cut down on rent costs by sharing common areas like kitchens, living rooms, and yards. Unlike co-housing, which consists of separate structures and is primarily built for families, co-living is designed for young, working professionals to network, cohabitate, and save money.
The Upside ⇡
The idyllic, 70’s inspired communal living concept is getting a new, sexy twist: it’s run by VC-backed startups ready to provide the ultimate living experience. Consider Serendipia Nest, a coliving project in SF for entrepreneurs, or UP(st)ART, a creative-centric co-living company in LA. By commodifying niche communities, anyone has the ability to bump elbows (literally — these spaces can be small) with those who share their interests and values. Depending on your budget, some co-living spaces allow you to opt in or out of having your own laundry machines and bathroom. Rooms come fully furnished and leases are flexible, ranging from a few months to a year, or even a few days in some cases. With 40% of Americans reporting that they’re lonely, shared spaces are an easy fix. They’re designed to make you feel comfortable and cared for. Wine socials? Check. Weekly yoga? Check. SmartTVs, regular cleaning services, and customized social media apps? Check, check, check.
“Would your landlord ever pick you up from oral surgery if you couldn’t find a ride? We would.” - co-living company Starcity
The Downside ⇣
While many of these spaces self-report to be affordable, they’re mostly designed for millennials in the upper-middle class. Co-living company Common starts its San Francisco rooms at $1,220/mo, which in all fairness is decent for the area, until you remember that you’ll be living with strangers for varying lengths of time and you’ll share almost all of the household amenities with them. Some companies like Starcity work with local communities to only take over unused buildings and provide a few leases for low income folks where the rates are set by local housing authorities. For the sundry other companies, however, you do have to wonder who was displaced from living in the buildings before the flashy new startup took over. Furthermore, sharing space with large groups of people has obvious up and downsides (think: dishes, noise, and COVID-19), and the community aspect has the potential of feeling fabricated. As one GQ reporter noted about WeWork’s nearly-defunct co-living project, WeLive, “[it] isn't a real “utopia” per se… it asks nothing of its members by way of shared responsibility or decision-making. It's purely transactional. You just pay in, show up, enjoy the perks, and go about your merry way.” While the bougie-college-dorm feel is cute, one also has to wonder: at what point do we grow out of it?
The Future ⇢
Let’s face it: leases are so yesteryear. New York already has an estimated 25,000 co-living rooms, and the phenomenon is likely to continue with full force, pandemics permitting. It’s possible that co-living spaces are going to bring rent prices down. One hypothetical model showed that an apartment building targeted at renters making 60k or more could be transitioned to a co-living space with rooms available to those making 30k a year. The blossoming gig economy of freelance and at-home workers is likely to draw people to living spaces where they can be social and work near others in similar jobs. Short-term leases will appeal to frequent travelers and digital nomads who prefer to stay in one spot for a few weeks or months before moving on. With the popularity of co-living already gaining recognition, some spaces may become even more exclusive and potentially move towards a living + working + business-incubating model like Draper University. Consider co-living to be the new “physical social network”.
Neat Nuggets
Hot take: a survey of over 14,000 people found what most people would love—and hate—most about co-living
Though not technically a co-living property, a man in India runs the world’s largest household, living in one mansion with 39 wives, 94 children, and a plethora of grandchildren and extended family, totaling at 180 people
The co-living trend is a natural progression from the Bay Area’s infamous “hacker houses” which were satirized by the HBO show, Silicon Valley
Listen Up:
Cam sat down with Jon Dishotsky, CEO of co-living company Starcity. For a peek into the future of cities and individualism, check out the podcast here!