What is Coliving and is it worth it?

Coliving has risen in prominence within the real estate sector thanks to the rise of housing startups offering cost-effective living options for groups of three or more adult roommates. These coliving arrangements come in various forms, ranging from refurbished single-family homes suitable for unrelated households to converted high-rise building floors providing dormitory-style accommodation. Typically, coliving entails short-term or flexible lease agreements, coupled with extra perks such as cleaning services, professionally furnished communal spaces, and convenient amenities and utilities.

Types of coliving accomodations

Modern Coliving: This is the typical housing arrangement referred to as Coliving nowadays, where three or more unrelated individuals live together in one shared space. Usually, coliving embodies an intentional community concept, providing shared housing for individuals with similar values or goals.

Commune: Communes are global communities often found in rural areas, where residents may practice self-sufficiency or come together around common political or spiritual beliefs.
Co-ops: In Co-ops, members commit to work shifts where they clean, cook, and manage the house together. Co-ops are typically democratically governed, and have house meetings where they elect leaders and vote on house business. Co-ops are generally larger houses with anywhere from 15 to over 100 residents. (In New York City, the term co-op refers to apartment buildings that are owned by a group of shareholders.)

Adult dorms: This style of coliving resembles a college dormitory or hotel: a series of compact (typically private) bedrooms line corridors leading to communal spaces shared by numerous individuals. Such housing arrangements can host hundreds of residents.
Informal shared housing: Informal or conventional coliving entails a collective of individuals sharing a lease and jointly furnishing a residence. They might connect through online listings, forums, or social networks.
Co-housing: The concept of co-housing gained popularity in Denmark during the 1960s as a method to nurture community bonds and distribute familial responsibilities. Co-housing communities usually encompass multiple generations, featuring individual homes clustered around a central communal house, alongside communal green spaces and coordinated activities

Coliving Benefits

Convenient

Once the lease is finalized for your new residence, your responsibilities continue. You’ll need to arrange utilities and establish monthly payments for essentials like internet, gas, and electricity; personalize your new space to create a comfortable environment; and coordinate household chores with roommates to maintain cleanliness. If a roommate decides to leave, you’ll have to find a replacement.

Managing a household requires effort. In a coliving arrangement, you distribute household duties, allowing you to allocate more time to activities you enjoy.

Affordable

Rent constitutes the most substantial monthly expenditure for individuals in their 20s, with an average of 45% of their income allocated to apartment leases. Thus, if you aim to save money, sharing accommodation with roommates presents one of the most effective means to substantially reduce expenses.

However, rental costs alone do not encompass the entirety of living expenses. When factoring in security deposits, broker’s fees, and the expenses associated with purchasing new furniture and kitchen essentials, leasing a new apartment independently can significantly impact your financial resources.

Separate leases

Coliving alleviates the financial concerns linked to shared living arrangements. By providing individual room leases rather than group leases, coliving eliminates worries about roommates’ timely rent payments or premature departures. Additionally, you no longer have to handle the burden of paying utilities in advance and chasing your housemates for reimbursement, as both utilities and rent are incorporated into a single monthly payment.

Community

Whether you’re relocating to a new city or occupied with work commitments, forging friendships as an adult can prove challenging. Coliving endeavors to address this issue by providing a pre-established community of individuals willing to share meals, organize movie nights, and engage in daily conversations. With private bedrooms and shared living spaces, coliving accommodations provide the freedom to participate in social interactions at your convenience or cherish moments of solitude when preferred.

Flexibility

If you’re hesitant to enter into a lengthy lease, particularly when it involves purchasing furniture and appliances for a residence you might only inhabit temporarily, coliving provides a versatile solution. This proves especially beneficial if you’re relocating to a new area and wish to familiarize yourself with various neighborhoods before making a permanent decision. Additionally, when you eventually depart, you need not concern yourself with jeopardizing your housemates’ living arrangements or furnishings, as each resident maintains separate leases.

Pack Light

Instead of acquiring multiple household items that you might have to dispose of or sell upon moving, you can opt to bring only the essentials to your new bedroom, preserving your funds for more important expenses.