Here are five lessons on the future of co-living

A co-living building, The Collective Old Oak, in north west London. Image: Getty.

In a new report from the Royal Society of the Arts, we asked a range of thinkers and practitioners to explore the concept of co-living – a form of housing that combines private living space with shared communal facilities. Unlike flatshares and the like, co-living is explicitly designed to encourage communal interaction and build community. Although it accounts for a very small proportion of the overall housing stock, it is growing.

In this article, RSA researcher Atif Shafique summarises the findings of that report.

Sometimes described as the hipster’s answer to the commune, co-living may actually represent more than just a trendy throwback to the utopian communities of the past. Its growing appeal is in fact linked to very modern challenges, that some claim it can meet better than more ‘mainstream’ (and less affordable) forms of housing. Issues ranging from rising loneliness and ageing to changing patterns of work, consumption and living are compelling us to think differently about the sorts of homes we need or desire.

Some of this is forced upon us because of the crisis of affordability in cities such as London. But it’s also driven by a desire to get something different out of a housing system that tends to provide little in the way of affordability, quality and choice. Younger generations are bearing the brunt of this, especially as housing tenure shifts dramatically from owner occupation to private renting (60 per cent of Londoners are predicted to be renting by 2025) – a tenure which generally is less secure and of lower quality.

Squeezed out of fast-shrinking social housing and unable to get onto the housing ladder until they’re middle-aged, millennials understandably feel they have few options available to them. Only 17 per cent consider social housing an option, while only 23 per cent have looked at shared ownership schemes. Meanwhile, demand for flatsharing is ballooning, especially in London. (As a side note, use this brilliant interactive heatmap by splittable.co to see how much of London is affordable for living on your own versus sharing. Spoiler: if you’re on a modest income, not very much of it.)

Oh dear. Click to expand. Image: Splittable.

Can co-living provide a higher quality alternative? One that provides flexibility and security, but also builds social capital amid rising loneliness and growing turbulence in the economy and labour market? Can it become a key option in efforts to meet the housing challenge?

The collection of essays provide a range of perspectives on these questions. Below I provide five key take-always from the publication.

1. A lack of housing supply isn’t the only issue we face

So much of the housing debate is narrowly focused on finding ways to build more homes. As important as this is, we also need to think hard about challenges relating to housing quality, security, choice, space standards and design. The types of homes we build matter.

In his essay, Rohan Silva, a former adviser to David Cameron, argues that our housing system is too slow to respond to the twin forces of globalisation and technological change that are transforming our lives. With more innovation in our approach to planning and the built environment, new models of housing (including co-living) could flourish and better meet our needs and ambitions.

2. Community isn’t a commodity that can be manufactured

The unique selling point of co-living is that it can foster a lasting sense of community among diverse residents. But as co-living developers are discovering, this isn’t easy – and especially not ‘at scale’ in a commercial setting, without a ready-made community' of driven and likeminded individuals.

Jess Steele’s essay points to possible solutions using the Heart of Hastings (HoH) Community Land Trust project as an example. Using a combination of methods drawn from social enterprise, neighbourhood development and community-led housing, HoH shows how diverse communities can be brought together with initiatives that build their sense of ownership and capacity to make decisions, promote self-help and encourage community enterprise.

Traditionally, co-living has been criticised for creating gated communities. But HoH shows that communities of place, and not just communities of (homogeneous) residents, can be built with the right approach.


3. Communal living isn’t alien to Britain

We tend to think of Britons as having an innate, unshakeable preference for privacy and private consumption. This is perhaps why co-living is sometimes written off as small-fry housing that won’t ever have ‘mainstream’ appeal, even though similar models are prevalent in other parts of Europe)

Nicholas Boys Smith traces the history of communal living and its policy context, and finds that this description lacks nuance. People value communality deeply, but also like to be able to retreat into the private.

It is this balance between privacy and social interaction that co-living tries to get right. The growth of the sharing economy and the rise of co-working, impact hubs and other forms of collaboration suggests there is an appetite for greater sharing and social engagement – and some would say co-living is part of this trend. As society ages, the need to live together differently (and more communally) will only grow.

4. Design can help us to re-imagine housing

The housing crisis is usually presented as a political or policy problem, rooted in dysfunctional decision-making structures. However, Manisha Patel argues that it is just as much a design challenge. If we are to tackle climate change and improve the quality of social connections in society, we may need to transform how we live and how we design our homes and our neighbourhoods.

The Low Impact Living Affordable Community (LILAC) in Leeds illustrates this with its community of eco-friendly homes. Manisha examines how design principles can be at the heart of co-living, and co-housing schemes in particular. She identifies how architecture can promote “social contact,” how new forms of design can enable intergenerational living among extended families (for example, the multi-generation house), and how processes such as modularisation can achieve energy efficiency at scale. 

5. Homes have become speculative assets, but we can redefine our relationship to them

Speculation is rife in the housing system. It isn’t just investors, banks and oligarchs that are involved: many of us engage in it. When people buy homes with the expectation that they will rise in value, that’s speculation.

Government has supported it too, because house price growth contributes to consumer spending and broadening home ownership enables wealth accumulation, premised on the cash (and borrowed cash) to be paid by future buyers. Despite the sheer amount of money that government has invested to get people on the housing ladder, the dominant home ownership model is clearly cracking and the dangers of housing speculation (not least recession and economic instability) are becoming increasingly clear. The financial crisis of 2007-8 was triggered in US housing markets, and the home ownership rate in the UK has fallen for at least the last decade. 

It doesn’t have to be like this. Jonathan Schifferes and I argue that it is possible to support a shift away from seeing homes as speculative assets to seeing them as sources of collective and community wealth.

Notions of wealth and equity in our housing system are understood far too narrowly: they tend to mean individual ownership of a financial asset, the value of which is determined by the market. It is possible to broaden this understanding to encompass the benefits of  having a stake (financial, social, personal) in the success of  the community in which one lives and contributes to. Co-living and more co-operative approaches to housing can support this: experience across Europe suggests that such models can become major parts of a mixed economy of housing.

Co-living isn’t a magic bullet solution for resolving the housing crisis; nor is it an approach without significant challenges itself. The essays pick up on the problems that co-living models often face, in particular their lack of diversity and occasional tendency to produce exclusive communities. In the for-profit private rental sector there is the added danger that they commodify community.

But as Matthew Taylor notes in his introduction to the essays, if it can overcome its challenges, at its root co-living offers new choices for those who see communality as part of how they want to live, work and thrive.

Atif Shafique is a senior researcher on inclusive growth at the Royal Society of Arts. He tweets at @atif_shafique. You can read the RSA’s co-living report here

 
 
 
 

What Citymapper’s business plan tells us about the future of Smart Cities

Some buses. Image: David Howard/Wikimedia Commons.

In late September, transport planning app Citymapper announced that it had accumulated £22m in losses, nearly doubling its total loss since the start of 2019. 

Like Uber and Lyft, Citymapper survives on investment funding rounds, hoping to stay around long enough to secure a monopoly. Since the start of 2019, the firm’s main tool for establishing that monopoly has been the “Citymapper Pass”, an attempt to undercut Transport for London’s Oyster Card. 

The Pass was teased early in the year and then rolled out in the spring, promising unlimited travel in zones 1-2 for £31 a week – cheaper than the TfL rate of £35.10. In effect, that means Citymapper itself is paying the difference for users to ride in zones 1-2. The firm is basically subsidising its customers’ travel on TfL in the hopes of getting people hooked on its app. 

So what's the company’s gameplan? After a painful, two-year long attempt at a joint minibus and taxi service – known variously as Smartbus, SmartRide, and Ride – Citymapper killed off its plans at a bus fleet in July. Instead of brick and mortar, it’s taken a gamble on their mobile mapping service with Pass. It operates as a subscription-based prepaid mobile wallet, which is used in the app (or as a contactless card) and operates as a financial service through MasterCard. Crucially, the service offers fully integrated, unlimited travel, which gives the company vital information about how people are actually moving and travelling in the city.

“What Citymapper is doing is offering a door-to-door view of commuter journeys,” says King’s College London lecturer Jonathan Reades, who researches smart cities and the Oyster card. 

TfL can only glean so much data from your taps in and out, a fact which has been frustrating for smart city researchers studying transit data, as well as companies trying to make use of that data. “Neither Uber nor TfL know what you do once you leave their system. But Citymapper does, because it’s not tied to any one system and – because of geolocation and your search – it knows your real origin and destination.” 

In other words, linking ticketing directly with a mapping service means the company can get data not only about where riders hop on and off the tube, but also how they're planning their route, whether they follow that plan, and what their final destination is. The app is paying to discount users’ fares in order to gain more data.

Door-to-door destinations gives a lot more detailed information about a rider’s profile as well: “Citymapper can see that you’re also looking at high-profile restaurant as destinations, live in an address on a swanky street in Hammersmith, and regularly travel to the City.” Citymapper can gain insights into what kind of people are travelling, where they hang out, and how they cluster in transit systems. 

And on top of finding out data about how users move in a city, Citymapper is also gaining financial data about users through ticketing, which reflects a wider trend of tech companies entering into the financial services market – like Apple’s recent foray into the credit card business with Apple Card. Citymapper is willing to take a massive hit because the data related to how people actually travel, and how they spend their money, can do a lot more for them than help the company run a minibus service: by financialising its mapping service, it’s getting actual ticketing data that Google Maps doesn’t have, while simultaneously helping to build a routing platform that users never really have to leave


The integrated transit app, complete with ticket data, lets Citymapper get a sense of flows and transit corridors. As the Guardian points out, this gives Citymapper a lot of leverage to negotiate with smaller transit providers – scooter services, for example – who want to partner with it down the line. 

“You can start to look at ‘up-sell’ and ‘cross-sell’ opportunities,” explain Reades. “If they see that a particular journey or modal mix is attractive then they are in a position to act on that with their various mobility offerings or to sell that knowledge to others. 

“They might sell locational insights to retailers or network operators,” he goes on. “If you put a scooter bay here then we think that will be well-used since our data indicates X; or if you put a store here then you’ll be capturing more of that desirable scooter demographic.” With the rise of electric rideables, Citymapper can position itself as a platform operator that holds the key to user data – acting a lot like TfL, but for startup scooter companies and car-sharing companies.

The app’s origins tell us a lot about the direction of its monetisation strategy. Originally conceived as “Busmapper”, the app used publicly available transit data as the base for its own datasets, privileging transit data over Google Maps’ focus on walking and driving.  From there it was able to hone in on user data and extract that information to build a more efficient picture of the transit system. By collecting more data, it has better grounds for selling that for urban planning purposes, whether to government or elsewhere.

This kind of data-centred planning is what makes smart cities possible. It’s only become appealing to civic governments, Reades explains, since civic government has become more constrained by funding. “The reason its gaining traction with policy-makers is because the constraints of austerity mean that they’re trying to do more with less. They use data to measure more efficient services.”  

The question now is whether Citymapper’s plan to lure riders away from the Oyster card will be successful in the long term. Consolidated routing and ticketing data is likely only the first step. It may be too early to tell how it will affect public agencies like TfL – but right now Citymapper is establishing itself as a ticketing service - gaining valuable urban data, financialising its app, and running up those losses in the process.

When approached for comment, Citymapper claimed that Pass is not losing money but that it is a “growth startup which is developing its revenue streams”. The company stated that they have never sold data, but “regularly engage with transport authorities around the world to help improve open data and their systems”

Josh Gabert-Doyon tweets as @JoshGD.