Co-living becomes a more appealing option

Big-city apartment-dwelling can be a financial and emotional drain, but the growing trend of co-living can soften the blow.

Co-living comes in many varieties, from shared houses to luxurious mini-apartments. But the basic premise is the same: Renters can save money and expand their social circle if they’re comfortable with smaller digs and shared common spaces. Co-living properties also tend to have more flexible lease terms and no broker fees, which can add thousands to the cost of a rental.

Rooms at co-living spaces are in high demand. Common, a co-living startup with homes in New York, San Francisco, Chicago and Washington, says it’s getting 1,000 applications per week for its 500 bedrooms.

Co-living is such a new trend that no one company has perfected it yet, says Bob O’brien, the global real estate sector leader for the Deloitte consulting firm. He expects a lot of experimentation over the next five to 10 years.

But he thinks the trend could stay, in part because it appeals to so many people. Even if millennials form families and move to bigger homes, there are plenty of transient contract workers and empty nesters who may fill the void.

Shruti Merchant, Hubhaus’s co-founder and CEO, says co-living is gaining in popularity because young people want housing that prioritzes community over privacy.