Co-living is rising in popularity for both renters andinvestors. For investors, co-living offers 30% net rent premiumcompared to traditional apartments, according to research fromJLL. With renters showing strong demand for theproduct, capital sources are also increasing allocations as well.In 2018, global fundraising for co-living increased 182%, and in2019, funds have already raised $300 million.

“Co-living offers high-density and high-revenue potentials astraditional rents are seeing historic highs, potentially offering awin-win opportunity for both landlords and tenants,” DanaBrody, SVO at JLL, tells GlobeSt.com. “Net operatingIncome is also higher, making it very attractive to multi-familyoperators as they are able to generate a much higher rent per unit.Units that are being offering as a co-living opportunity can garnerup to 40% more than a traditional rental, making it a verylucrative proposition for owners looking to increase their bottomline. Co-living renters get reduced rents and increasedflexibility, while also providing a more communal livingexperience, which millennials seem to prefer.”