What trends to watch in 2021?
With the economy not doing so well, high unemployment, no increase in per capita income, and a lack of affordable housing, the integrated living spaces with varieties of convenience and many shared amenities provide a way to reduce the bottom line. Moreover, it introduces a structural infrastructure to find a solution to this socio-economic problem.
Co-living emerged as 2020’s top trend
Coliving is defined as a form of housing where residents share a set of interests, values, and/or intentions. The infrastructure can be private flats, shared dorms, etc. But it’s based on values like openness and collaboration, networking, etc. The most common form of coliving is a structure integrated into a single building, house, or apartment based on the above predicament. It provides shared affordable living spaces and facilities to people with similar interests and values. If you see google trends and news, the trend shows a constant increase since 2015, and 95% of the news articles were written post-2019.
The knock-off effect coliving communities create in the economy is astounding. Coliving provides the convenience of shared spaces with integrated public services, transportation services, etc. Smaller living spaces become practical, rentals and commute are more affordable, and money saved goes back into the pockets of residents, who use it to support businesses.
Additionally, the service providers operating in coliving spaces get much more vital foot traffic to thrive. Investors enjoy the rise in property values that inevitably follow.
Keeping a lid on rental increases
With the slow economy globally, the occupancy are on downward trends in the traditional market, coliving provides better returns per unit of land and at the same time keeps the rental growth rate down. In the past, people used to expect a 10% rental increase every year, which has come down to 2%-5% in recent times.
Coliving emerging as a new asset class
All around the world, coliving is now seen as a solution to increasing the housing crisis. With increased occupancy per unit square meter, it helps more people live sustainably in the same space. They take advantage of community spaces for washing, food, etc., to enable better use. It comes at an intersection of Residential, Commercial, and Hospitality segments.
Coliving is going to skyrocket in this decade. The demographic mix of the world is at a perfect point to push community living and coliving forward. With better availability of technology, the coliving movement will become more scalable and sustainable in this decade.