Previously, co-living was merely a niche product in a multibillion dollar industry. Now, developers are preparing to launch some of the biggest new co-living properties onto the market.
Like the rooming houses of days gone by, co-living building residents rent rooms in larger apartments with others. Communal spaces include kitchens, living rooms, and laundry, but included amenities like dog walking, cooking classes, and cleaning services serve as an update, Realtor.com reports. Jay Parsons, a vice president at property management software company RealPage says there is immense benefit to be had for investors entering the supply-heavy multifamily sector, “Making it affordable to have an urban apartment will trigger demand.”
“Co-living’s institutional moment is now upon us,” said Chris Bledsoe, co-founder and chief executive of Ollie, which also recently opened a large co-living project with 422 bedrooms. “There’s no more flying by the seat of your pants.” San Francisco-based co-living startup Starcity last week agreed to purchase a development site in downtown San Jose where it plans to build a 750-unit co-living building. The company also intends to file plans this week for a 270-unit co-living building in SoMa, a trendy former industrial area in San Francisco, that will be half affordable housing. Starcity plans to break ground on both buildings in the first quarter of next year and open them in 2021 or earlier.
