STRATEGY
CO-LIVING
The Future of Co-Living
WILL THIS EFFECTIVE SOLUTION TO AFFORDABLE HOUSING SURVIVE LONG TERM?
By Peter Stuart
In March, every sector and every business scrambled to understand how COVID-19 could and would impact their operations and what paradigm shifts, if any, would occur. A diversified real estate investment company called outlier, based in Washington, DC, has $100 million of co-living projects in various stages of operations, construction, or enti - tlement. As COVID-19 unfolded our team began to consider short-term and long-term impacts on co-living; how would it change, how would the needs and preferences of residents change, and what accelerated trends might be beneficial or be detrimental to the roommate-style
housing sector of real estate? Below are three predictions for post COVID-19 co-living and the larger mul- tifamily housing sector: AFFORDABILITYAND FLEXIBILITYAREMORE IMPORTANTTHAN EVER BEFORE Before COVID-19, in many major cities across the United States most renters paid more than 30 percent of their income towards their rent, and in some cities above 50 percent. The Wall Street Journal recently reported that 22.5 percent of Americans are at risk of being evicted. As the econom -
ic impacts of the pandemic unfolds, many may become unemployed or underemployed, pushing more people to seek more affordable and flexible housing. Co-living properties provide residents the opportunity to live in a great neighborhood for 30 percent less than what a studio or one-bed- room costs. It also provides residents more flexibility, not only with a short- er lease term, but with the ability to move within 24 hours to another unit in the network of our property man - agement partner, Common. In addition to individuals feeling the economic impact, municipalities are being affected and forced to cut
58 | think realty magazine :: august 2020
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