Cashing in on Co-Living
Affordability has reached the breaking point even in markets that previously boasted of low-cost housing. One attempt to address the problem is a rise in co-living arrangements among older as well as younger generations. There is even a pop-culture reference for this trend: the “Golden Girls” model, referring to an old TV show where a trio of senior women lived together in a house.
Anita Kramer, senior vice president at the Urban Land Institute Center for Capital Markets and Real Estate has said that not only does co-living have financial benefits, but it also creates community. “It’s very important especially as technology has made us more isolated,” she said. “I think people are looking for more ways to connect back to community. Co-living could be one of them, and at the same time, be another approach to finding affordable housing.”
As an investor, consider making co-living a part of your strategy for renting single family houses with multiple rooms, or possibly converting larger spaces into co-living environments. This may be a more stable investment strategy in some areas, especially if you're renting to older tenants. Keep in mind that good co-housing goes beyond simply renting rooms. It includes vetting each tenant more carefully and possibly adding features to encourage more shared living.
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