The Co-Living Trend and What It Means for Housing Affordability
There was a time when only students are known to share accommodation with their fellow students attending the same university—sometimes a different one but around the same location. Nowadays, students are not just the only ones seeking for this kind of accommodation which is called co-living. Professionals, too, are embracing this trend because of so many factors—housing unaffordability is one of those.
One of the reasons why many Australians find it difficult to invest in property is the cost of living, most especially in Sydney and Melbourne. Because of the changing market condition, investors are making co-living spaces an option for professionals by using the student accommodation model which is considered an extension of the PBSA or Purpose Built Student Accommodation. Co-living, in simple terms, means shared accommodation. It is a type of intentional community or planned community wherein the members have a shared vision whether it’s political, social, or religious. Although the communal living is a modern concept, it’s actually inspired by the tenements or flats that date back almost a century ago. In recent years, the co-living concept has been embraced by so many.
How is Co-Living Similar to Rooming Houses?
We have recently talked about rooming houses and you may be wondering how is it similar or different from rooming houses? Well, in essence, they are the same. Co-living and Rooming houses apply the shared accommodation or communal housing option. However, a rooming house is a building where rooms are available for rent. Co-living is the whole concept of communal or sharing accommodation with another individual or group of individuals. It is an alternative way of living wherein unrelated individuals are brought together in one place.
How is the Impact of Co-Living Affecting the Housing Market?
The concept of co-living has been quite popular among millennials. According to statistics, co-living facilities have grown most especially in America and London. In fact, Bloomberg cited adult dorms as one of the social trends in America in 2018. It is also now seen as a solution to the lack of affordable housing in Australia. Between 2011 to 2016, an increase of 14% in homelessness and about 50% are facing rental stress. The co-living option has made a huge difference among these individuals seeking more affordable accommodation.
Is Co-Living Suitable for Everyone?
I think the most obvious answer to this question is no—it is not suitable for everyone. In fact, this type of living is most appealing to individuals who have a nomadic lifestyle such as travelers who go from one place to another. However, because of the market conditions, it has also affected so many people that those who just can’t afford to buy their own home would resort to shared accommodation until they have saved enough for a residential property.
As part of the communal living industry, our vision at Xotel is to battle the crisis in housing affordability in Australia by providing an affordable lifestyle. We are also eager to promote this lifestyle in order for our guests to have a better financial standing to live independently in the future, and at the same time decrease the stress stemming from rental fees and the high cost of living.