Co-living is rising in popularity for both renters and investors. For investors, co-living offers 30% net rent premium compared to traditional apartments, according to research from JLL. With renters showing strong demand for the product, capital sources are also increasing allocations as well. In 2018, global fundraising for co-living increased 182%, and in 2019, funds have already raised $300 million.
“Co-living offers high-density and high-revenue potentials as traditional rents are seeing historic highs, potentially offering a win-win opportunity for both landlords and tenants,” Dana Brody, SVO at JLL, tells GlobeSt.com. “Net operating Income is also higher, making it very attractive to multi-family operators as they are able to generate a much higher rent per unit. Units that are being offering as a co-living opportunity can garner up to 40% more than a traditional rental, making it a very lucrative proposition for owners looking to increase their bottom line. Co-living renters get reduced rents and increased flexibility, while also providing a more communal living experience, which millennials seem to prefer.”
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