This (paywall) article discusses how paying guest accommodations with lots of people crammed into one or two rooms proved a challenge during COVID, co-living spaces were what it calls ‘its more polished cousin’.

Six months later, students and working professionals, the mainstay of co-living housing, have yet to migrate back to the cities. But co-living companies saw what was coming and began cutting costs, including employees let go, staff salaries reduced, and WiFi speeds brought down.

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