The sharing economy has been set back by the global pandemic as social distancing measures have put paid to too much proximity.
Despite this, co-living as an alternative has been a bright spot within the sharing economy, seeing unanticipated demand from traditional multifamily developers and owners to diversify their portfolio.
According to recent study, multifamily rent collections have proven resilient compared to retail and office, and this article discusses developers and investors protecting their exposure from economic uncertainty by planning layouts with a co-living operator in mind for a portion of total units delivered.
It illustrates with the example of an owner with a traditional two bedroom 1,200 square foot apartment in a gateway city, able to enjoy $4,000 per month in rent, whereas a 4-room co-living space at $1,500 per bed would yield the owner $6,000 in monthly rent. Added to which, it spreads the risk across four renters rather than one, in light of today’s uncertain employment picture.
It also says vacation rentals are crashing and co-working has been replaced with WFH.