The impact of co-living in Europe
Among the housing solutions that have been tested within Europe for some years now, co-living is the one that, to date, seems to be the best in meeting the changing needs of citizens. In a period characterised by an increase in the demand for urban land use and the sharing economy, co-living provides modern and flexible solutions, in line with mainly the consumer habits and lifestyle of the younger generations, but not in all cases.
Co-living today means optimising the use of available spaces, while promoting social cohesion amongst residents.
What is co-living?
Co-living is an idea of sharing a living space and was developed in response to the rental market increases that have occurred both in Europe and in other developed countries in recent years. It can be an ideal solution especially for the millennial generation looking for shared experiences within a community but also for the many elderly people who do not wish to live alone.
Living in co-living means renting a private space, such as a study or bedroom, within a property where the remaining areas are shared with other tenants. It’s a solution that creates a community environment, whilst allowing autonomy with private areas and it attractively helps reduce the cost of renting. In fact, just as co-working spaces offer young entrepreneurs the tools and space they need at a fraction of the cost of a traditional office, co-living helps reduce the cost of living while allowing access to an environment where they can benefit from experiences of sharing spaces and lifestyles.
It is a new interpretation of an old idea, imagined by a generation that values aspects such as openness, collaboration, social networks and the sharing economy.
Property development and management company JLL carried out a study analysing the state of the European co-living market and the key drivers of the demand.
The study showed that there are currently 23’150 beds in co-living facilities in Europe which have already been built or are under development. For this sector to reach its full potential however it is believed that strong political and regulatory support is required.
The research also showed that around 53% of current operating facilities have a capacity of more than 100 people and this figure is set to rise to 79% once projects currently under development take shape. It is still assumed that the average size of a co-living facility will exceed 250 tenants.