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

 
 
 
 

A new wave of remote workers could bring lasting change to pricey rental markets

There’s a wide world of speculation about the long-lasting changes to real estate caused by the coronavirus. (Valery Hache/AFP via Getty Images)

When the coronavirus spread around the world this spring, government-issued stay-at-home orders essentially forced a global social experiment on remote work.

Perhaps not surprisingly, people who are able to work from home generally like doing so. A recent survey from iOmetrics and Global Workplace Analytics on the work-from-home experience found that 68% of the 2,865 responses said they were “very successful working from home”, 76% want to continue working from home at least one day a week, and 16% don’t want to return to the office at all.

It’s not just employees who’ve gained this appreciation for remote work – several companies are acknowledging benefits from it as well. On 11 June, the workplace chat company Slack joined the growing number of companies that will allow employees to work from home even after the pandemic. “Most employees will have the option to work remotely on a permanent basis if they choose,” Slack said in a public statement, “and we will begin to increasingly hire employees who are permanently remote.”

This type of declaration has been echoing through workspaces since Twitter made its announcement on 12 May, particularly in the tech sector. Since then, companies including Coinbase, Square, Shopify, and Upwork have taken the same steps.


Remote work is much more accessible to white and higher-wage workers in tech, finance, and business services sectors, according to the Economic Policy Institute, and the concentration of these jobs in some major cities has contributed to ballooning housing costs in those markets. Much of the workforce that can work remotely is also more able to afford moving than those on lower incomes working in the hospitality or retail sectors. If they choose not to report back to HQ in San Francisco or New York City, for example, that could potentially have an effect on the white-hot rental and real estate markets in those and other cities.

Data from Zumper, an online apartment rental platform, suggests that some of the priciest rental markets in the US have already started to soften. In June, rent prices for San Francisco’s one- and two-bedroom apartments dropped more than 9% compared to one year before, according to the company’s monthly rent report. The figures were similar in nearby Silicon Valley hotspots of San Jose, Mountain View, Palo Alto.

Six of the 10 highest-rent cities in the US posted year-over-year declines, including New York City, Los Angeles, and Seattle. At the same time, rents increased in some cheaper cities that aren’t far from expensive ones: “In our top markets, while Boston and San Francisco rents were on the decline, Providence and Sacramento prices were both up around 5% last month,” Zumper reports.

In San Francisco, some property owners have begun offering a month or more of free rent to attract new tenants, KQED reports, and an April survey from the San Francisco Apartment Association showed 16% of rental housing providers had residents break a lease or unexpectedly give a 30-day notice to vacate.

It’s still too early to say how much of this movement can be attributed to remote work, layoffs or pay cuts, but some who see this time as an opportunity to move are taking it.

Jay Streets, who owns a two-unit house in San Francisco, says he recently had tenants give notice and move to Kentucky this spring.

“He worked for Google, she worked for another tech company,” Streets says. “When Covid happened, they were on vacation in Palm Springs and they didn’t come back.”

The couple kept the lease on their $4,500 two-bedroom apartment until Google announced its employees would be working from home for the rest of the year, at which point they officially moved out. “They couldn’t justify paying rent on an apartment they didn’t need,” Streets says.

When he re-listed the apartment in May for the same price, the requests poured in. “Overwhelmingly, everyone that came to look at it were all in the situation where they were now working from home,” he says. “They were all in one-bedrooms and they all wanted an extra bedroom because they were all working from home.”

In early June, Yessika Patapoff and her husband moved from San Francisco’s Lower Haight neighbourhood to Tiburon, a charming town north of the city. Patapoff is an attorney who’s been unemployed since before Covid-19 hit, and her husband is working from home. She says her husband’s employer has been flexible about working from home, but it is not currently a permanent situation. While they’re paying a similar price for housing, they now have more space, and no plans to move back.

“My husband and I were already growing tired of the city before Covid,” Patapoff says.

Similar stories emerged in the UK, where real estate markets almost completely stopped for 50 days during lockdown, causing a rush of demand when it reopened. “Enquiry activity has been extraordinary,” Damian Gray, head of Knight Frank’s Oxford office told World Property Journal. “I've never been contacted by so many people that want to live outside London."

Several estate agencies in London have reported a rush for properties since the market opened back up, particularly for more spacious properties with outdoor space. However, Mansion Global noted this is likely due to pent up demand from 50 days of almost complete real estate shutdown, so it’s hard to tell whether that trend will continue.

There’s a wide world of speculation about the long-lasting changes to real estate caused by the coronavirus, but many industry experts say there will indeed be change.

In May, The New York Times reported that three of New York City’s largest commercial tenants — Barclays, JP Morgan Chase and Morgan Stanley — have hinted that many of their employees likely won’t be returning to the office at the level they were pre-Covid.

Until workers are able to safely return to offices, it’s impossible to tell exactly how much office space will stay vacant post-pandemic. On one hand, businesses could require more space to account for physical distancing; on the other hand, they could embrace remote working permanently, or find some middle ground that brings fewer people into the office on a daily basis.

“It’s tough to say anything to the office market because most people are not back working in their office yet,” says Robert Knakal, chairman of JLL Capital Markets. “There will be changes in the office market and there will likely be changes in the residential market as well in terms of how buildings are maintained, constructed, [and] designed.”

Those who do return to the office may find a reversal of recent design trends that favoured open, airy layouts with desks clustered tightly together. “The space per employee likely to go up would counterbalance the folks who are no longer coming into the office,” Knakal says.

There has been some discussion of using newly vacant office space for residential needs, and while that’s appealing to housing advocates in cities that sorely need more housing, Bill Rudin, CEO of Rudin Management Company, recently told Spectrum News that the conversion process may be too difficult to be practical.

"I don’t know the amount of buildings out there that could be adapted," he said. "It’s very complicated and expensive.

While there’s been tumult in San Francisco’s rental scene, housing developers appear to still be moving forward with their plans, says Dan Sider, director of executive programs at the SF Planning Department.

“Despite the doom and gloom that we all read about daily, our office continues to see interest from the development community – particularly larger, more established developers – in both moving ahead with existing applications and in submitting new applications for large projects,” he says.

How demand for those projects might change and what it might do to improve affordable housing is still unknown, though “demand will recover,” Sider predicts.

Johanna Flashman is a freelance writer based in Oakland, California.