The Rise of Co-Living in New York City
[Excerpt] Co-living has taken off in the last year as a brand-new phenomenon within the multifamily real estate sector. Not only is it a new asset type for the general public but it is also the new niche asset type receiving a considerable amount of attention from institutional investors. So, what exactly is co-living? Is it something completely new as it is often talked about in many conversations in the real estate industry or is it rather a simple, modified version of a real estate asset type that we have grown to know incredibly well? In this article I will begin with introductory remarks on what the co-living asset type actually is, and what it is not. I will then (1) briefly discuss the demographic that co-living operators are hoping to serve and whether or not the demand is sustainable, (2) illustrate a geographical overview of the current state of co-living in New York City, (3) provide insight into the link between affordability and the rise of co-living in those neighborhoods, (4) discuss the regulatory hurdles that co-living faces and the efforts that are being made by the real estate industry to overcome those hurdles, and (5) discuss how the institutional world views the rise of this niche asset type and what trends investors may look for as they seek to confirm the viability of their investment. Finally, summary remarks are at the end.
Cornell Real Estate Review
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