Over the past few years, there has been a proliferation of co-living spaces in Singapore and around the globe. Co-living has been increasing in popularity amongst millennials and young working professionals especially in cosmopolitan cities.
It’s also an emerging property investment option for property investors. Let’s take a look at the key trends driving the growth of the co-living market.
1. Rise of the millennials
Millennials are a driving force for the co-living movement, along with their younger counterparts Gen Z. Millennials have now eclipsed baby boomers as the largest adult demographic. Armed with rising incomes, they now also play a key role in shaping societal values.
Millennials have more life experiences, are well-travelled and crave more freedom. They are more open and willing to embrace the concept of co-living as it gives them the taste of independence they yearn for and the chance to plug into a network of like-minded individuals.
2. Rise of the shared economy
The shared economy is an economic system where underutilised assets can be shared for free or for a fee. Think ride sharing and car sharing, crowdfunding, peer-to-peer lending, resource sharing and more. Co-living or communal living comes under this category too.
In major cities where housing can be costly, co-living spaces make perfect sense because it offers cost-savings, convenience and a sense of community. With millennials’ changing values, a preference for experience instead of ownership, as well as an openness for sharing, co-living has now become an affordable and acceptable lifestyle choice.
3. Technological transformation
In today’s digital economy, individuals have more options on where they live, work and play. The 9-to-5 office grind is long gone and work-from-home (WHF) or hybrid working solutions are now the norm, thanks to the COVID-19 pandemic.
As long as there’s access to technology, people have the flexibility to work remotely. This ability to plug into the internet whenever and wherever has afforded young people the option to explore different career paths. For example, they can become freelancers, YouTubers or online business owners.
Thanks to technology, careers have become more flexible and this has also led to demand for co-living spaces as there’s no longer a need to step into a physical office to work.