A living arrangement where you share everything from kitchen space to interests to rent to gossip, but not your privacy and personal space? Sounds familiar, but also new. This can be aptly called a concept that used to exist as early as cave art and dinosaurs but one that has been rebranded as ‘co-living’ as of the recent past. To put it simply, it is a mainstream housing model that has made an impactful comeback.
Despite having taken a hit because of the pandemic, co-living is back with a bang. Some say that this is because of the financial situation of most millennials and Gen Z’ers where they are seeking for more affordable and flexible living options. Some say that it is because the modern community is looking for a feeling of belonging, where they want to enjoy solitude as a part of a community and not be lonely with no one around. A more cynical perspective says that something that appears to be a groundbreaking idea might also be viewed as a manipulative tactic employed by real estate developers to profit from a generation that experiences a pervasive sense of isolation in a time marked by constant difficulty in finding a suitable living space. Or perhaps it is a little bit of all of these. Irrespective of why co-living spaces are in such high-demand, it is patent that it has already become a global living movement.
Often seen as an elevated iteration of the communal living arrangement familiar to students, co-living caters to individuals entering their professional phase. The shift in perspectives is what marks co-living as a transformative shift in real estate. Modern millennials, representative of the new generation, desire a sophisticated living experience that encourages interaction without the intrusiveness and nosiness of traditional housing setups.
Co-living is not a mere phase, it is a lifestyle
Co-living, also known as communal living, is a contemporary style of living where a group of unrelated individuals who decided to live under the same roof, have their own private bedrooms in furnished homes while sharing common spaces. This is particularly common in large cities and appeals to students, workers, digital nomads, and those relocating due to its affordability, flexibility, provided amenities, and a sense of community. Amid urban housing challenges, shared housing stands out as a direct solution for achieving cost-effective living and optimal density.
The real-estate sector is undergoing a notable transformation in how individuals inhabit spaces and interact with each other. The increasing urbanisation and soaring housing expenses are causing conventional living setups to be questioned, leading to inventive approaches that emphasise community, ease and cost-effectiveness. Co-living environments are becoming a practical choice for people desiring a living situation that is both interconnected and adaptable. While co-living has become second nature in most countries, Singapore is still testing the waters with it. However, as of this year Singapore is seeing a complete turn around where they are responding to the escalating demand for co-living accommodations by converting additional state-owned buildings into such spaces. Despite the growth being slow, according to an article posted on ‘hospitalitynet’, in 2023 and beyond, there will be notable prospects emerging for both investors and operators within this market. It also states how the potential growth is substantial with the market potentially adding nearly 3,000 housing units by the conclusion of 2023. This projection is an extension of the existing 9,000 rooms under the management of 20 operational co-living providers. The surge in demand yet again arises from consumers’ inclination towards housing alternatives that are more cost-effective and adaptable.
Additionally, this can also be a solution for housing shortages. Lucy McInally in her online article, “Co-living in 2023: The Development of a Major Global Real Estate Market” captures how profound the impact of it will be on the city ecosystem by quoting Leah Ziliak, otherwise known as ‘The Coliving Consultant”. Ziliak says that:
“By 2030, nearly 9% of the world will live in 41 megacities, most of them being located in Asia. By 2050, 2 out of every 3 people will live in cities or urban centres.”
The expansion of cities leads to urban sprawl, where residential areas extend to the suburbs, resulting in increased dependence on transportation. Co-living counters this trend by providing shared communal areas and compact private spaces, thus conserving urban space. This approach lessens the need for additional housing construction while enabling people to reside more centrally. Ultimately, co-living significantly benefits the entire city ecosystem by curbing urban sprawl and enhancing urban living.
Attitudes towards co-living
A lifestyle or a practice is birthed into existence because people get a whiff of a trend that is promising and they want its taste to linger, in the long run. While co-living has its downsides like everything else, most individuals are choosing to co-live, even if it is at their own risk. And the reasons range from wanting to expand the typical notions of life and experience to creating a sustainable future that reduces carbon emissions.
A global survey conducted by the WCM (Worldwide Co-living Membership), by assembling 5 member countries, to better comprehend the co-living residents’ attitude on life, residential satisfaction, and needs concerning communal spaces and services in the context of co-living, indicated that 73.5% of responses demonstrated that they spent more time in their new co-living homes compared to their previous regular homes.
From this observation, it can be deduced that co-living spaces offer a more enjoyable living environment, potentially serving a purpose beyond basic housing. According to the study, 90% of freelancers surveyed reported an increase in their time spent at home. Freelancers possess greater flexibility in choosing their work location, which explains the extended home hours.
WCM represents a coalition of co-living brands and operators united in their mission to advance and nurture the co-living culture. Originating in South Korea with EPISODE, this initiative encompasses 7 distinct co-living enterprises spanning 7 countries. The participating members of this dynamic alliance include MyTown from the Philippines, Gravity Co-living from the UK, Share house 180 from Japan, Coimpact Coliving from Spain, Campus Perth from Australia, and POHA House from Germany.Which means that the above observation is not one hailing from a limited sample but rather from one that spreads across regions.
While many assume that affordability is ‘THE’ reason why late millennials and Gen-Z opt for co-living, it is evident that there is so much more that consumers expect from being a shareholder of this concept. Interestingly, according to the same survey, when asked about their expectations from residing in a co-living space, the majority of respondents, at 78.8%, expressed a desire for “new experiences,” followed by 58.9% who prioritised “social networking.” In third place, 57.6% of respondents selected “cost reduction.”
Interestingly, compared to the straightforward advantage of affordability, residents of co-living spaces placed more emphasis on the abstract and intangible aspects, like the chance to encounter novel experiences and broaden their social circles. This indicates a shift from the conventional notion of a “home” primarily serving as a place for rest; co-living residents now recognize additional values associated with their living arrangements.
Evidently, co-living has become more than a fad. Humans are increasingly becoming more conscious about living that they sift and sieve to choose the most viable and at the same time most user friendly option. The concept of co-living and the way that most tenants are responding to it is bringing an entirely new feel to what it could mean when one says ‘home is where the heart is’.
(Sandunlekha Ekanayake)