The Housing Trend More Adults Are Embracing to Save Money and Make Friends
With a record share of US renters cost-burdened and many adults craving more connection at home, co-living is drawing a wider audience than just digital nomads. Here are answers to the most common questions about how the model works, who it fits and what to watch out for.
What is co-living and why is it growing?
Co-living is a shared housing model where residents rent private rooms while sharing communal areas like kitchens, lounges and coworking spaces, usually with utilities, Wi-Fi, furniture and cleaning rolled into one monthly price. Demand is rising as housing costs squeeze renters and remote work reshapes where people choose to live.
A record 50% of US renters are cost-burdened, meaning they spend more than 30% of their income on rent, according to Gensler. Long-term affordability pressures, social isolation and the flexibility that comes with remote work have pushed young professionals, digital nomads and global residents toward the model in cities across the country.
Who is co-living actually for?
Co-living is no longer just for digital nomads. In an Outsite survey, 60% of participants reported having a home base, suggesting the model also suits frequent work travelers and people with flexible schedules who want structure and community without a long-term lease.
The average Outsite member is about 35 years old. Roughly 70% of survey participants registered as single, followed by those in relationships. The setup tends to work for adults who want a turnkey living arrangement and built-in neighbors, whether they relocate often for work or simply want a household with more social life than a typical studio.
How much can co-living save you on rent?
Residents can save up to 40% compared with traditional rentals, in part because pricing is all-inclusive. Rent typically covers utilities, Wi-Fi, cleaning and furnished private rooms, which eliminates setup costs and surprise bills.
Leases are often month-to-month, making it easier to relocate without breaking a long-term agreement. Community is bundled in too. Some 71% of co-living residents feel less lonely, according to Coliving.com, with shared spaces encouraging friendships and professional networking. For renters weighing a studio against a private room in a managed shared building, those bundled costs and the built-in social life are central to the appeal.
What challenges is the co-living industry facing?
The industry is facing stiff headwinds, including unhappy tenants, increased legal scrutiny and a shortage of suitable sites. Some operators are adapting with hotel-style models that feature shorter stays, more staffing and tighter tenant vetting. Others have merged, acquired rivals or closed entirely.
“The companies that came up in 2017 and 2018, most of them no longer exist,” Brad Hargreaves, founder of Common, told The New York Times in 2022. Common, founded in Brooklyn in 2015, grew to manage 7,000 bedrooms across 80 buildings in cities including Birmingham, Seattle and Tampa. It was acquired by Berlin-based Habyt GmbH in 2022, filed for bankruptcy in mid-2024 and ceased standard US co-living operations.
What should you look for in a co-living space?
Look closely at how the operator handles community and resident wellbeing, not just the price and the floor plan. Those two areas tend to drive whether residents actually enjoy living there.
“I fell more and more in love with coliving as I learned it could be a solution not only to loneliness, but also to the mental health, environmental, and housing crises we are all facing,” Naima von Ritter Figueres, co-founder and Head of Community and Wellbeing at Conscious Coliving, told We Should Get Together.
Figueres recommends asking whether there is at least one dedicated community facilitator or manager for every 30 residents, whether events are hosted regularly, whether residents are encouraged to engage, whether good communication and feedback channels exist and whether community and wellbeing metrics are part of the business’s key performance indicators.
How can you find a co-living space?
Two dedicated platforms make it easier to search globally. Coliving.com lets renters explore spaces and check availability around the world. Outsite focuses on properties geared toward digital nomads and remote workers, with locations across multiple countries.
Before signing, review pricing transparency, the length and flexibility of the lease, which amenities are included in rent and how the operator handles community programming. Ask about staffing ratios, event calendars and how resident feedback gets handled. Putting those questions up front helps avoid the tenant frustrations that have dogged parts of the industry as operators expand, contract or change hands.
This article was created by content specialists using various tools, including AI.
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