Over the past few years, co-living buildings have taken older buildings and rejuvenated neighborhoods all over the world.
Co-living spaces mimic the model of coworking offices by relying on a shared economy. People have individual bedrooms, but share a kitchen and communal spaces.
Companies such as WeWork have created these cheaper living alternatives in major cities that have rising real estate prices. There are numerous advantages for both residents and real estate developers in this upcoming market.
By converting low-density units into high-density ones, companies can make efficient use of space while creating a market for people who value location, services and community over actual apartment space and privacy.
Renovating such spaces also allows for a larger occupancy within buildings at a lower cost, which is ideal in cities with high construction costs.
Using a team to redesign a space that offers short-term, long-term and communal living can also boost overall rental income without having to expand the building itself.
Many companies find that providing these living arrangements in workable cities like New York and London to be ideal, but others see them as a fad rather than a sustainable business.