Coliving as a solution to Covid.

Recurring complaints about renting an apartment in a big city are exacerbated during COVID-19 times, driving millennials to leave in droves:

• Rents are too high and contracts too long -> The answer lies in more flexibility for renters.
• Apartments are too small and provide near 0 comfort. With people working from home, this becomes a bigger problem as they spend more time at home -> The answer lies in more services and amenities.
• Living in a small studio or renting a room in an unadapted apartment with roommates you did not chose can ruin your life. In the first case, COVID-19 is making your social life inexistant. In the second case, it is making it at best frustrating -> The answer lies in curated communities and adapted shared spaces.

Whats is co-living? How can it help?

The term coliving refers to a form of coexistence in a living space, where the users are not members of the same family and voluntarily share the same roof, having the same or similar interests, and intentions.

In real estate, coliving is a broad term that encompasses various different types of projects. But, at its core, it is the reunion of three concepts:

• Flexibility

Millennials are looking for flexibility. They get it with their music (Spotify), movies/TV shows (Netflix), mobility (Uber), vacation stays (Airbnb), food (UberEats) etc...

Why not giving it to them when it comes to their accommodation?

Coliving often occurs with more flexible lease terms accommodating shorter stays and indecisive people. Visits are virtual thanks to 3D technology and the on-boarding is keyless thanks to digicodes. All rooms come fully furnished, with Wifi, and shared spaces are ready to be used. Only one invoice covering utilities, amenities, and rent. In one word: convenience.

• Services

Under all its different variants, coliving includes a wide range of services: from hotel-grade amenities like house cleaning (good to avoid conflicts), SPA, pool, gym, rooftop terrace, to amenities you usually find in upscale real estate like home cinema, large garden, gaming room, (co)working areas, and designer furniture.

Coliving is not for everyone (and is not intended to be) but add to this list of amenities, an individual room with double bed, storage space, a little desk and a private bathroom and you get a very good experience at the crossroads of hotels and family homes. I do not know many single millennials who would not want to live in such space. That explains the current impressive momentum coliving is experiencing in major cities all around the world.

• Community

Under all its different variants, coliving is about communities.

As mentioned previously, living in a small studio or renting a room in an unadapted apartment with roommates you did not chose can ruin your life. In the second case, it is making it at best frustrating.

But, creating a place where everyone can feel at ease and confortable is the goal of every coliving. That is why new members are carefully selected and interviewed by the current members to insure a proper match.

Every community needs help to keep flourishing. That is why many coliving spaces include organized events to solidify friendship among residents. For example, France's @lacasa organize cooking classes in their "cooking-themed" coliving house.

With people starting their family life later than previous generations, coliving bridges the gap that exists after millennials leave their parents' nest and before they start their own.

Conclusion

Flexibility, services, and community are particularly important today in the context of COVID-19. Workers are leaving big cities in droves. I am not going to bore you with numbers but, for example, Manhattan's vacancies are at their highest since they started recording this data point... This is because Coronavirus is not only wreaking havoc on our social life but also on the job and real estate markets. I think coliving is an answer for renters and real estate investors who both want more for their money.