Co-living housing developments on the rise

Co-living companies plan to open more than 55,000 beds in the next few years and have raised hundreds of millions of dollars of equity to meet their expansion targets. Institutional investors have taken notice, and interest by traditional real estate buyers is rising rapidly, says a report from CBRE and Streetsense.

The emergence of co-living communities over the past few years has largely been a response to rising housing costs and need for more affordable housing options, especially in major U.S. markets attracting young professionals from other parts of the country. Co-living offers a less expensive alternative for young adults — typically targeting 25- to 35-year-olds, though not limited to this age range. Co-living appeals to many because of its upscale amenities and finishes (without the commensurate upscale rents), and its leasing and move-in flexibility.

Modern co-living properties are much like student housing for young professionals. They are purpose-built