Coliving in Post Pandemic LA
We often are asked about our many Co-living projects. What are are they? Who are they for? What advantages are there?
As LA emerges from the pandemic, it’s clear that the past year will leave lasting changes. The prevalence of remote work means many people are looking for better living arrangements, whether it’s a dedicated work space or the flexibility to move around. This is coupled with a desire for more community, so it’s no surprise that there’s been a growing interest in coliving.
The concept is living quarters for 3-5 roommates that share communal spaces, such as a living room, kitchen, and outdoor areas. Each tenant may their own bedroom, with either a private or shared bathroom. It’s an affordable option for people who desire a comfortable space and a sense of community.
While it may seem like a new phenomenon, some variation has been around throughout history. Today’s coliving just happens to be more stylish, often in hip neighborhoods, and catered to a younger generation. It’s common for the typical coliving space to be full of young professionals, creatives, and tech workers. Coliving could reshape the way we think about housing and work in the future.
Post Pandemic Life
Post Pandemic life has reshaped the housing market and consumer needs. Record house prices and increasing rent means people are exploring affordable housing options. The pandemic has shifted moving trends in the US. With some sort of remote work now a permanent part of the office, fewer people see the need to live near city centers or near their work. When you take a work commute out of the equation, it opens up a broader area of where people are able to live. If people move away from the top rental markets, it decreases the demand for housing in dense areas.
“By enabling housing for more people within a smaller footprint, coliving relieves the pressure of increasing demand.”
Home prices in Southern California have never been higher. The median cost of a single-family home is up more than 20% since April 2020. And while the price of renting fell across the US during the past year of the pandemic, they are now rebounding. Home prices and rental prices are linked, but, more notably, the two continue to increase in price because the market cannot meet the public demand. In order for housing costs to become more affordable, you need to decrease the demand. One way to do so is by creating more housing.
By enabling housing for more people within a smaller footprint, coliving relieves the pressure of increasing demand. Because common areas like the living area, kitchen, and work areas are shared, it requires less square footage overall to house five people as opposed to if they were each in separate units. Less square footage per resident also brings down the cost of construction, which can lead to more affordable rent.
A Place for Coliving
Coliving is addressing density issues by allowing more people to live comfortably in less square footage. Having denser cities doesn’t have the best connotation, but it inevitably yields more affordable housing. Coliving developers achieve this through lower construction cost and less personal space than a more traditional living arrangement.
If the coliving complex is offering low income to extremely low income housing, it can further reduce the cost of construction. City planning and housing departments offer several incentives for builders to increase density, such as a reduction in the parking spaces required, increase in the number of units allowable, and so forth. The coliving model can house more people (more rent) with less built square footage per inhabitant, which also enables operators to charge less rent per inhabitant.
Coliving is trying to offset a smaller personal space with thoughtful common areas and higher-end amenities, at a price lower than a luxury apartment. It also offers ease. A coliving company/residence facilitates the search for roommates, furnishings, bills, cleaning, and offers a flexible contract. It also avoids the stress of searching for an apartment in the top rental markets, where it can be incredibly competitive and have dozens of other people vying for the same listing. Coliving is a way to have the independence of living on your own without having to deal with the less glamorous aspects of it.
In essence, it is like living with 4 or 5 roommates without worrying about splitting the bill or a person being late on rent. Think college dorms or coops, but polished and refined for the young professional. Surely, that type of housing isn’t for everyone. However, it simplifies all the logistics, fulfills a social need, while aiming to be more economical for the average young professional.
After enduring over a year of lockdown and working from home, there is an overarching desire to start something new and a need for socializing and community. For those that want to experience living in a new city without the hassle of moving, imagine being able to move to a new city with just some essentials in a suitcase. Once again, coliving is highlighting ease. Through the coliving model, one can easily find a pre-furnished apartment, roommates without the unpleasant vetting process, and skip the awkwardness and loneliness of not knowing anyone in a new city.
While it may sound idealistic that coliving is aiming to alleviate all the growing pains of the housing market, it does serve a purpose for and appeals to a niche market. Coliving is striving to provide a solution for density and affordability in the rental market. It addresses a shifting job market and provides a structured community for those in unfamiliar environments. The challenges with housing are quite daunting; and coliving is a growing sector, but still just a small fraction of the housing market. Whether this model gains more traction and how much of a dent in housing it makes remains to be seen.