Coliving
Generally co-living is a type of intentional community that provides shared housing for people with similar values or intentions.
The co-living experience may simply include group discussions in common areas or weekly meals, although will oftentimes extend to shared workspace and collective endeavors such as living more sustainably. An increasing number of people across the world are turning to co-living in order to unlock the same benefits as other communal living models (such as communes or cohousing), including "comfort, affordability, and a greater sense of social belonging." There is a difference between coliving, flex living, and shared living.These terms are interchangeably used across regions.
Co-living as a modern concept traces its origins to shared living models of the 19th and 20th centuries such as tenements in the UK, boarding houses in the US, and chawls in western India, yet ancient forms of communal living such as the longhouse date back thousands of years. Its contemporary form has gained prominence in recent years due to a combination of factors, including increased urbanization rates, a lack of affordable housing options, greater rates of disability requiring group home or assisted living arrangements, and a growing interest in lifestyles not dependent upon long-term contracts.
Sustainability
Co-living can enable a more sustainable lifestyle due to shared resources, allowing each individual to consume less energy, water, and space. With more communal areas and less space per individual, less energy is required for heating and cooling. Having a smaller floor area per person also limits the quantity of materials needed, reducing the emissions from building construction.
Several coliving companies, such as Cohabs, are leading the way in prioritizing sustainability within their operations.
These companies have taken significant steps towards environmental responsibility, with some achieving B Corporation certification, exemplifying their commitment to social and environmental performance, accountability, and transparency.
Community
The vast majority of co-living companies around the world claim that community is the number one benefit they provide their residents. Co-living companies promise their residents a thoughtful, community-driven living experience that will lead to meaningful relationships. One of the trends that has increased the demand for the community is the loneliness epidemic that has been identified by researchers in countries around the world. Studies have shown that loneliness can be seriously detrimental to one's health.
Studies show that daily social interactions, such as those common in co-living communities, can "improve health and increase longevity." Early evidence from co-living operators highlights the benefit of community. Venn, an Israeli co-living operator with locations in Israel, Germany, and the US, found that "loneliness levels drop by 50% just 6 months after joining Venn" and "100% of members feel they are socially supported."
Convenience
The convenience benefit of co-living comes namely from flexible lease terms and a customer-centric business model. Instead of only offering twelve-month leases, many co-living operators offer shorter lease terms of three or six months that better suit the dynamic lifestyles of their tenants. In fact, an increasing number of co-living locations are starting to offer month-by-month rental agreements as well as the option to not pay a traditional deposit. As a differentiation strategy, co-living operators also aim to remove the many frictions of the traditional living experience such as buying and moving furniture, finding roommates, or paying separate utility bills. By providing fully furnished rooms, offering roommate matching, and including utilities in a single rent price, co-living operators create a convenient living experience "so all you need to do upon arrival is unpack your suitcase."
Cost savings
Another potential benefit of co-living is relatively affordable rent when compared to traditional living environments in the same area. Co-living operators decrease costs for their residents in two main ways. First, many co-living operators bundle their product offering to include a variety of services for one, all-inclusive price. Instead of paying separate bills for utilities, furniture, wifi, gym access, cleaning services, and amenities (such as paper towels, linens, or coffee), co-living residents pay one bill each month that comes at a discount compared to paying for all the services individually. Second, many co-living operators utilize higher density spatial design models to decrease the amount of rent paid by each resident. By operating four or six-bedroom units instead of studios or two-bedroom units, "the rent per square foot of a co-living unit will be much higher than that of a traditional multifamily unit.”
