Some of the leading young professional and most expensive property markets are coming up with unique ways to offer housing options to those who normally couldn’t afford them. The idea is called co-living developments; or apartment-style buildings that provide both separation and shared living spaces to renters.
Catching on to young professionals looking to live and work in the top areas across the US, leading property developers in the cities of New York and Los Angeles are joining forces to bring over $100 million worth of shared apartments that will work to meet the growing demand for housing in Southern California. Co-living inhabitants opt-in to shared living areas including kitchens, living and dining areas, with separate bedroom and bathrooms for each resident.
The average rent of these properties is affordable when compared to the cost of traditional apartments in locations such as LA and Hollywood, but in terms of median rent in the US, the rent still sits at 15% higher. Affordability isn’t the only demand these properties address, the sheer growth in populations is exceeding property availability in markets who have limited development space. “The ability to fit more residents into smaller spaces is likely a key benefit driving property investors who are looking to investment in locations where available land is scarce,” shares leading property developer in apartment style housing, Marcus Hiles. This type of property is not so unique, however, as new housing models have continued to crossover into modern day.
One living style popular with newer generations centers around “corporate” communities. Property and land complexes where personal and professional lines cross into shared living communities, top firms like Google and Apple have introduced these to allow employees and their families affordable housing options with close proximity to work.
What these modernized housing styles reflect is an importance on living where the opportunities are, even if that means sharing a community or building with 15 of your neighbors – who just may happen to be your coworkers.
CEO of Western-Rim Properties and key player in the Texas area housing development; Marcus Hiles adds “As corporate locations are diversifying into areas like Texas, there is still a large majority of industries and firms operating out of centralized hubs where cost of living is not feasible for the average employee.” However, those in demand of these jobs are welcoming new properties like co-living buildings, seeing it as an investment into their future success, as others may see home ownership.
California, the most popular location for these new-style properties, finds it is individuals making $40,000-$80,000 per year and at the median age of 29. That age bracket may seem higher than one would expect for residents open to what is described as dorm-style living, but in fact new generations are shown to take longer in making life decisions such as home ownership, marriage and starting a family. Different contributing factors are related to this generational change, though it seems an increasing need for continued education and pre-requisite experience to enter modern corporate careers is a key driver.
As this new sector in property development expands it will continue to introduce more residents into city locations, further diversifying the workforce and ultimately housing markets. It is open for discussion, however, if it is a sustainable living alternative or if the interest of today’s populations will in turn force corporate headquarters into new areas as housing affordability, and availability diminishes in over-populated areas.