One of the biggest challenges that people in their 20s face is housing affordability. Looming student loan bills and rising costs of living are some of the contributing factors. While we love, love, love to help people to buy homes, the fact of the matter is that not everyone can afford to. For the person fresh out of college or still trying to recover from student loan debt, having an affordable place to live can help them to save the money they need to get ahead and in a better financial position, but even an apartment can be too expensive, which is why many end up moving back home with their parents. However, a group of startups, including WeWork Cos., and more established companies like Property Markets Group, believe they’ve found a solution:
Co-Living Apartments. Unlike regular apartments, these are leased out by the bedroom. Each unit has its own bathroom and comes partially furnished. A private kitchen may also be included. Typically, the bedrooms are smaller than those found in a full apartment with 1 or 2 bedrooms, but the cost savings makes up for it. The rent runs about half of the cost of renting a full apartment.
Some Co-Living Apartment complexes also offer communal areas with scheduled events (game nights, classes, Happy Hour, etc.), just as you might see in a master planned community. So, residents are saving money and getting amenities to fit an active lifestyle.
For the investors, the development of Co-Living Apartments is higher than normal units due to the need for a separate bathroom. However, the cost is made up in the rent made from the apartments holding 2 units that may have otherwise been rented by one person. Some of the developers are buying or leasing existing buildings and just paying for the upfitting.
Now, the question is – will we be seeing some of these Co-Living Apartments popping up in the Wilmington area? What do you think?
Read more about these unique properties on Realtor.com: Big Developers Roll Out Co-Living Units to Woo Millennials