The concept of shared consumption has led to the fact that a new form of housing has appeared on the market called co-living. Instead of investing in housing, millennials prefer renting or living in a hostel. At the same time, the demand for specific housing for pensioners arose in the world. Let’s catch up on the trends together and talk about coliving in the USA!
The sharing economy
Sole ownership of property in the modern world is becoming too expensive and burdensome. With the development of Internet technologies, online platforms have appeared that allow sharing things and resources belonging to different people: cars, houses, offices, airplanes, bicycles and even clothes.
Thus, a new socio-economic model arose — the sharing economy. To date, it has reached an annual turnover of $15 billion, and by 2025 it may exceed $335 billion. This will make the sharing economy one of the fastest growing sectors of international development.
The concept of sharing is based on the idea that it is more profitable for a consumer to pay for temporary access to a product than to own it. Interestingly, wealthy people were among the first to start the practice of sharing. Quality asset management is not cheap, so wealthy families began to team up with their own kind to share these costs. So there were family offices, family offices.
Joint consumption of real estate
In the development of this trend, a special type of housing appeared on the real estate market – coliving houses, houses for joint living. They are popular mainly with young people.
At its core, coliving is a cross between a rental apartment/house and a hostel of interest. In such a place, furnished rooms are rented for a relatively short period of time and certain services are provided. In coliving, as a rule, there are shared kitchens and living rooms, office areas and other public spaces where guests spend the maximum of their time communicating, working, and relaxing.
Returning to the problem of inexpensive housing, the inhabitant of it solves the main problem – the search for like-minded people, connections and high-quality communication. Active young people here meet peers who are close in spirit and interests, work together on projects, exchange experience and connections.
Also, they solve the problem of lack of communication. According to polls by sociologists, 64% of millennials say loneliness is their biggest problem.
How will housing change?
Here are a few technological breakthroughs that await us in the near future:
- 3D printers are becoming more powerful and can already create complex objects from a wide variety of materials. The day is not far off when buildings will be printed like books.
- There is a huge amount of new materials based on nanotechnology and waste processing technologies. For example, traditional concrete made from sand and gravel glued with cement is being replaced by concrete made from recycled waste (paper, cardboard, plastic).
- Today, most of the home Internet traffic is used for personal needs (communication and entertainment) of residents. By 2024, about half of all traffic will be spent on automating various in-house processes, household appliances and electronics.
Where will the elderly live?
Today, older people face some important tasks:
- care and medicine
- quality communication
- leisure and maintaining social activity
- involvement in public life
All these tasks can be solved by coliving, as a variant of cohabitation of the elderly.
Already, villages for the elderly are appearing around Palm Springs. Developers of such projects understand the problems and needs of their target audience. Unlike nursing homes in such villages, quite healthy, independent, active people of advanced age who want to live among their own buy and rent houses. Of course, in the villages there are services for caring for the sick, the issue of medical care, cleaning, and entertainment has been resolved.
According to surveys, older people living in such communities feel much happier than lonely old people.
What do they buy for coliving in the USA?
Some types of real estate are especially suitable for organizing collegiate. Here are some examples:
Tenement houses or apartments
Multi-family buildings with separate apartments are ideal for colliving. Each apartment offers separate bedrooms and living space, while common areas such as the kitchen, living room and dining room can be used for social gatherings and activities.
Residential complexes with apartments
There are housing estates designed specifically for collliving. They usually offer apartments with separate bedrooms and shared social spaces. Such complexes may have additional amenities such as gyms, community areas and laundry facilities.
Divided residential buildings
Some residences have subdivided sections or floors that can be rented separately to create a collegiate space. This can be a convenient option for a group of people who want to live together but have some degree of privacy.
Coliving in the USA, legal regulations
Colliving is usually organized through the conclusion of lease agreements or sublease with tenants.
Licenses and permits
It is important to check local licensing requirements and permits before launching a collaborative space, especially if you plan to provide services to residents such as common areas or additional amenities.
Colliving operators usually enter into lease agreements for the property they intend to use as a shared space.
So, coliving in the USA, as well as around the world, is turning into a global trend. But this does not mean that people will stop buying property. Their approach and need for housing will simply change. Moreover, coliving can solve the issue of housing not only for young millennials, but also for older people. People need people, which is why the idea of shared housing is becoming so popular.
Apartment buildings will become even more popular. Therefore, such a strategy is definitely worth exploring for real estate investors. After all, in the future they will be able to rent out apartments, houses or spaces for coliving.
Our world is changing and our task is to adapt to it. At LBC Mortgage, we take great pleasure in learning real estate trends and are always ready to provide our clients with the most up-to-date options. Contact for advice!