How does cohabitation change the lifestyle of millennials?

Author of the article

The author of the article is Yulia Ershova, a content editor. In recent years, there has been a noticeable increase in interest in new forms of living, such as coliving and coworking spaces. This phenomenon is a result of changes in the lives of people living in large cities, as well as a need for social interaction.

Statistics on lonely people

According to research by Scottish experts, more than one third of households consist of single residents. In the Netherlands, it is projected that by 2030, the number of single people will reach 3.5 million, which is half a million more compared to 2019, when their number was 3 million. Russia has also recorded an increase in single households: the results of the experimental census in 2018 showed that one in three citizens of the country lives alone.

Global process of urbanization

At the same time, a global process of urbanization is taking place. For example, in Eurasian countries, the share of the urban population did not fall below 50% in 2018. In Belgium, which leads in Europe, the level of urbanization reached 98%. Living alone is becoming a common reality for megacities; however, members of the younger generation, including millennials, need quality interactions with other people. The concept of co-living...co-living) is a response to this challenge.

The impact of technology on social connections

Urbanization and the spread of mobile technologies have had a negative impact on social connections. Studies conducted in the UK in 2016-2017 showed that:

• Those who see their loved ones less often feel lonely 84% more frequently.
• People who avoid communication with their neighbors are 43% more likely to feel lonely compared to those who maintain active relationships with their neighbors.

In the USA, an app was created to address this issue.Ameegothat helps find professional friends for a short period of time.

The needs of millennials

Personal interaction, support, and a sense of belonging are becoming a true luxury. Millennials, people aged 20-30, are considered the most internet-savvy and lonely generation. Ekaterina Teider, Development Director at the companyBECAR Asset ManagementIt emphasizes that the area of personal space is decreasing, making questions of functionality important. Modern needs include:

• Comfortable mattress
• Hot water
• Stable internet

While spending time with like-minded individuals has become a true blessing, millennials prefer renting homes rather than buying them, focusing on resource sharing and skill exchange.

The modern values of the younger generation

Subjectively, the younger generation, to which I also belong, is less focused on material goods and more concentrated on gaining experiences, impressions, and real-life interactions. People born in the 90s often refer to...“modern nomads”— they choose more modern and life-adapted housing options and are not opposed to frequent relocations.

The concept of co-living

The modern concept of "co-living" encompasses various models of shared living, including communal life in dormitories and shared apartments. These formats offer residents personal space alongside communal areas where neighbors can socialize and interact. I have personally had the opportunity to experience different options for co-living, whether it was living with three, seven, or completely alone. My experience living in a dorm with six roommates turned out to be more enjoyable than complete isolation.

Advantages of cohabitation

Living together with peers has many advantages. One of the main benefits is having people around with whom you can discuss everyday matters or have dinner together. It's nice to organize celebrations, as it becomes easier and more cost-effective.

• Our schedules often coincided.
• Whenever the idea of going on a trip came up, finding a companion was not difficult at all.
• At the age of 18 to 25, the desire to explore the world and gain new experiences often outweighs financial constraints.

Joint study

Studying in the company was also a successful decision, as we easily exchanged notes, shared interesting lectures and literature, and could print the necessary materials while completing assignments right at home. It was normal to share clothes, kitchenware, or even cooking ingredients. Malfunctions, such as broken pipes, were resolved with the help of the supply department or dormitory staff.

Disadvantages of living together

Naturally, there were some drawbacks as well. The results of communal living sometimes manifested in the need to maintain cleanliness in shared areas, and food left on the stove could accidentally be removed or eaten by neighbors. Nocturnal noises could also create certain inconveniences, but despite this, living with students was overall a positive experience for me.

Moving to Saint Petersburg

After moving to St. Petersburg and settling into my mortgage studio apartment, I truly appreciated all the advantages of living with others. The first three months in my new place were challenging: I had trouble falling asleep because I was used to the presence of other people. Working as a freelancer meant spending a lot of time at home, and I constantly missed basic communication and support in everyday life.

Limited communication with neighbors

In the residential complex, which was fully occupied, I only met my neighbors a few times in a year and a half. Our interactions were limited to greetings and brief conversations in the elevator. Additionally, I faced issues related to utility payments, regular meetings of the homeowners' association, and shortcomings on the part of the developer, which forced me to constantly reach out to various authorities.

The origins of modern co-living

The idea of modern co-living emerged in an attempt to address the mortgage crisis of 2008, although the concept of shared living often traces its roots back to the 19th century, when immigrants in the U.S. sought affordable housing. Today, co-living spaces offer tenants private rooms, often equipped with their own bathrooms.Approximately 75% of all objectsand mini-kitchens(15% of objects)This type of housing allows for individual privacy while also maintaining communication in areas accessible to all residents.

Modern approaches in co-living spaces

Recently, there has been a trend where colivings have started to offer more modern housing options, replacing traditional rooms with studio apartments and apartments that include a living room and coworking space. In some of these places, residents can rent individual sleeping spaces, although bunk beds are quite rare. For example, at the Lifex coliving located in Copenhagen, rooms range from 5 square meters, featuring a loft bed with a desk and wardrobe, to more spacious 70 square meter units with a full living room, kitchen, and bedroom. On average, the areas available in colivings range from 10 to 40 square meters, providing residents with options based on their needs.

Living conditions in co-living spaces

All colivings provide their residents with access to high-speed internet, as well as basic amenities for everyday life, including:

• bedding
• personal hygiene products;
• cleaning products;
• kitchenware.

It's interesting to note that more than 40% of such places do not allow couples to stay. Additionally, 90% of co-living spaces impose a ban on keeping pets, which can also be an important factor for potential tenants.

The audience of co-living spaces

In most cases, co-living tenants are young people aged 23 to 35. However, there are also specialized projects offering housing for older residents. Co-living is especially popular in large cities where the rental market is actively developing, such as:

• Berlin;
• New York
• Lisbon.

For example, in New York, renting in a co-living space can turn out to be30%more advantageous compared to a regular apartment.

The structure of co-living spaces

It is noteworthy that two-thirds of co-living spaces are part of network projects. Almost all of them are located in renovated buildings, such as former factories or office centers. Residents can choose between short-term and long-term rentals, with a duration starting from six months; however, every second rental prefers terms of one to three months.

Economic aspects of co-living

According to Eric Rosenfeld, an investment consultant at Habita International Estates, coliving can be seen as a kind of budget-friendly version of coworking, fitting into the concept of the sharing economy. Colivings attract tenants for several reasons:

• Reduction of expenses:They provide a significant reduction in housing costs.
• Social connections:Modern people strive for communication and seek variety in their lives.

In a constantly changing world, mobility and the ability to find ways to reduce costs are becoming particularly relevant.

Comfort and development of co-living spaces

Ekaterina Teider, head of development at Becar Asset Management, emphasizes that colivings always strive to create comfortable conditions for their residents by providing:

• separate bathrooms;
• spacious common areas.

This allows for finding a balance between personal life and communication in various functional spaces. Currently, there are over 600 co-living spaces operating worldwide, and in just the last six months of 2018, 100 new locations were opened.

Recently, there has been a significant increase in interest in co-living spaces, which are becoming increasingly popular worldwide. When looking at the distribution of co-livings across different continents, clear patterns emerge. The largest number of such spaces is found in the United States, where the most expensive options are concentrated. Meanwhile, Asian and South American countries offer more affordable housing options in the co-living format.

Overview of the global co-living market

The presented review compiles data on the international co-living market for the second half of 2018. Average rental prices vary by region:

• In North America, the cost of renting co-living spaces reaches1,540 dollarsfor the room and1,000 dollarsfor a sleeping place.
• In Europe, these figures are slightly lower and amount to1,110and880 dollarsaccordingly.
• The Asian market offers even lower prices.620 dollarsfor the room and everything270 dollarsfor a place in the shared space.
• In Australia and Oceania, the average rental cost is940 dollarsIn South America, prices start from270 dollars.
• In Africa, prices are comparable to those in Europe.1,110 dollarsfor the room and880 dollarsfor a sleeping place.

Thus, on average worldwide, the cost of renting a coliving space is1,150 dollarsfor the room and710 dollarsinstead of.

The state of the Russian co-living market

Currently, the co-living market in Russia has not yet reached a high level of maturity. Existing offerings often consist of regular apartments converted into stylized hostels, such as "Early Birds," "Trigliki," and "Yes Sheregesh." Specialist Ksenia Sorokina, who works in the international department of Moscow Sotheby’s International Realty, notes that interest in co-living spaces in Russia remains low, as the concept of this living format is just beginning to take shape. In order for the demand for co-living spaces to become more noticeable, rental prices need to be significantly lower — by20-30%compared to regular apartments.

Popular housing formats in Russia

Currently, in Russia, formats such as apart-hotels and studios are in higher demand. It is forecasted that by...2021In the coming year, the co-living market in the country could grow if reasonable pricing and convenient locations for rental properties are maintained.

Examples of successful colivings

Ekaterina Teider, a leading development specialist at Becar Asset Management, emphasizes that there are already successful examples of co-living spaces in Western markets, such as Old Oak, WeLive, and Roam. However, in Russia, this market is just beginning to develop. It is actively exploring various formats and adapting to the needs of the target audience, which opens up opportunities for developers to present innovative and interesting offerings.

A vivid example is The Collective.

One of the most significant examples is The Collective co-living space located in London. This project offers numerous benefits for tenants:

• Stylish design and high-quality interior finishes.
• A flawless sense of comfort in compact spaces.
• All apartments are ready for immediate occupancy.
• Provision of bed linen, towels, and cleaning services.

Community and ideas in co-living spaces

A key feature of coliving spaces is the creation of incubators for ideas and opportunities for exchanging experiences and interests. Often, these spaces are geared towards people working in specific fields or sharing common hobbies. Examples of such coliving spaces include Cryptocastle in San Francisco, designed for crypto enthusiasts, and The Rainbow Mansion, intended for startup founders.

Advantages of renting in co-living spaces

The rental prices for co-living spaces also make them attractive to tenants:

• Fixed rates are often on10-30%below market rates, which allows for the most efficient use of funds for housing.
• Tenants receive not only their own space but also access to shared amenities such as a coworking area, lounge, and kitchen.
• This makes living in a co-living space especially advantageous compared to traditional apartment rental options.

Reducing the risks of social isolation

Reducing the risks of social isolation is an important topic, especially relevant for those moving to a new city or country. The ability to find like-minded people and create new friendships plays a significant role for many.

Face control during check-in

The process of "face control" during the move-in, which includes interviews and questionnaires, helps select tenants by excluding undesirable elements, thereby creating a more comfortable environment for all residents.

Changing habits of millennials

Eric Rosenfeld, an investment expert from Habita International Estates, emphasizes that traditional status symbols such as home ownership, summer houses, or cars have lost their appeal for the new generation, the millennials. We are seeing that they are increasingly immersed in the digital reality, spending significant time on their phone screens and on social media.

The main task for the coming years is to restore live communication and interaction.

The value of common spaces in co-living

In the context of co-living, common areas take on special significance, as it is expected that residents not only settle into their individual rooms but also interact with one another. Young people want to be part of a community, especially when they find themselves in a new city.

Hypothetical situation

Let's consider a hypothetical situation: you have moved to London, where you don't know anyone. After buying or renting an apartment, your immediate surroundings consist of three Indians, two Pakistanis, and two Britons, who will likely limit themselves to simple politeness. After some time, you may feel lonely due to a lack of communication.

Alternative communication

The alternative sounds more appealing: you live alongside people who are also newcomers and face similar challenges and difficulties. This environment creates the perfect conditions for sharing experiences, joy, and discoveries. Living in a co-living format turns out to be more convenient and comfortable for such residents.

Advantages of co-living

Ksenia Sorokina, the director of the international department at Moscow Sotheby’s International Realty, notes that the main advantage for tenants is the presence of security checks and a high barrier in the housing market. However, there is also a downside: a lack of choice regarding roommates.

Why is co-living attractive to renters?

Ekaterina Teider, head of the development department at Becar Asset Management, emphasizes that co-living is appealing to tenants not only as a housing option but also as a space that includes a variety of different functions. For a reasonable fee, one can gain access to places for:

• Work
• Communication
• Sports
• Entertainment

This is significantly more valuable than just the size of a personal room, especially in today's world where we are online every day.

Investors and co-living

As for the benefits of co-living for investors, such housing models can be implemented in both commercial real estate and the private sector. Trust management allows for passive income, as the management of the property is transferred to the co-living operator.

Examples of successful projects like Common, Ollie, and Medici demonstrate how this model can be effectively implemented. Thus, coliving represents an innovative solution for modern living and working conditions, opening up unique opportunities for all participants in this process.

Availability of investment in rental properties

In recent years, investing in rental properties has become increasingly accessible due to the emergence of projects financed through investment loans and asset-backed loans. This creates attractive opportunities for investment, especially in countries like the UK, where returns can range from 5 to 8% per year.

Investors can start with relatively small amounts, which opens doors for both individuals and legal entities. For example, in the United States, there is a platform that allows investment in co-living startups with a minimum investment ranging from $10,000 to $10 million. Moreover, there is no need to purchase a property outright; renting with the option to sublet is also an attractive strategy.

Eric Rosenfeld's experience

Eric Rosenfeld, an investment consultant at Habita International Estates, claims that while WeWork has become a leader in the coworking segment, its subsidiary WeLive started its journey with leasing and subleasing. A similar concept is applied in the coliving sector:“I am acquiring a large commercial space and dividing it into separate sections for future rental.”This suggests that the venue is first rented out in its entirety and then divided into smaller units for leasing.

An example from life

A clear example can be seen in the situation with my son, who is studying at university. He shares a four-room apartment with friends, where each of them pays 350 euros a month for their room, totaling 1400 euros a month. If they had to rent separate one-bedroom apartments in the same area, each would pay at least 600-700 euros. Thus, they are saving twice as much.

In Finland, it is possible to rent a three-room apartment for 1000 euros and rent out the rooms for 400 euros each, which also significantly reduces expenses, especially if you own several such properties.

Success strategies for co-living creators

The founders of co-living spaces should focus on creating a product that generates little interest in order to ensure a steady demand among tenants and stay ahead of competitors. There are projects that are funded through crowdfunding, which opens up opportunities to enter the business with minimal risks.

The sharing economy is changing traditional financial models used in new projects. Forecasting profitability can be quite challenging, but it is important to recognize that the only limiting factor for the growth and spread of the co-living concept is the restriction on freedom of movement. When people are given the opportunity to move without any limitations, co-living will continue to develop actively.

Expert opinions

Ksenia Sorokina, the director of the international department at Moscow Sotheby’s International Realty, notes that to increase the profitability of co-living, it is essential to consider a number of key aspects:

• First of all,It's important to acquire real estate at prices much lower than the market rates.
• Secondly,It is important to carefully choose reliable and cost-effective contracting companies for services such as cleaning and the installation of internet and television.
• Thirdly,It is necessary to think through a promotion strategy.

Due to the mentioned factors, the yield in the co-living sector can reach 20-25% compared to traditional rental, making this model particularly attractive for investors.

Conclusion

In conclusion, I want to emphasize that the popularity of shared living formats, such as coliving and coworking spaces, is a response to the modern challenges our society faces. The changing lifestyle of urban residents, the desire for emotional support and quality communication, as well as the rise in the number of single-person households, significantly influence people's needs. Thus, ongoing urbanization and the increasing number of lonely individuals create ideal conditions for the development of new housing formats, where the opportunity to live and work alongside like-minded people becomes a true luxury.

Experience of cohabitation

Considering my experience living in various types of households, I can say that cohabitation has opened up many opportunities for me. It has not only enriched my social circle but also made everyday life more dynamic and fulfilling. I have felt the benefits that such arrangements offer:

• Experience exchange;
• Support in the learning process;
• Joint holidays;
• Deeper connections with people.

Advantages of renting and co-living

Moreover, in a situation where the possibility of acquiring housing is becoming increasingly costly, renting and co-living appear to be a more realistic and attractive option. By applying the co-living model, we can create a space where not only the financial burden is reduced, but also the quality of life is enhanced through communication and collaborative interaction.

Changes in the modern world

The world is changing, and we, as participants in these changes, must take into account the new realities. Instead of fighting against loneliness, we can benefit from collaboration and support each other by creating new, high-quality housing that meets the most modern requirements and standards. In this way, coliving spaces become not just places to live, but real communities that open up new horizons for each of us.