New development in affordable housing in 2025 – co-living

21 January 2025

A European trend making its way here could soon help improve housing affordability in 2025.

ā€œThere is an increasing amount of development and investor interest ā€˜co-living’ developments,ā€ says award winning architect James Alexander-Hatziplis, co-founder and CEO of Place Studio.

ā€œCo-living developments are a modern European housing concept designed to provide a blend of private affordable apartments, coupled with increased communal living spaces,ā€ he says.

ā€œEach apartment typically features a bedroom, premium bathroom and small kitchen while also providing shared common areas such as large communal living spaces, shared co-working spaces and recreational facilities. The apartment can be something between a studio and one-bedroom apartment in terms of design.

ā€œUltimately, this means that more apartments can be fitted into a development and at a more affordable price for residents – especially for new home owners.

ā€œBy sharing some common amenities, whether it’s recreation areas, laundry facilities, BBQ areas, storage and/or parking – costs can be reduced, making it affordable for first-time home owners,ā€ says Mr Alexander-Hatziplis.

For investors, it has the added advantage of better space usage, which can increase the number of apartments that can be built on a given piece of land.

Some key aspects of co-living development design include:

  • Community focus: Co-living spaces are designed to foster a sense of community among residents.
  • Affordability: By sharing common areas and amenities, residents can often enjoy lower living costs compared to traditional renting and/or purchase.
  • Location: These developments are often situated in well-connected urban areas, providing easy access to work, study, and recreational opportunities.
  • Eliminates the financial liability of having a roommate: Co-living does away with some of the financial anxiety of living with others, as well as giving the resident the benefit of owning their own space. Ā 
  • Living lighter: Ā Co-living naturally allows for residents to adopt a sustainable, minimalist lifestyle. Ā 

Mr Alexander-Hatziplis adds that it is important that co-living design maximises natural light, minimising running costs while maintaining a premium living environment.

ā€œCo-living development sites that we have taken to the market in recent months have been snapped up by buyers very quickly, demonstrating the strong buyer demand in this space,ā€ he says.

In Australia, each co-living apartment tends to range in size from 22sqm to 35sqm internally, is equipped with a double bed – suitable for two occupants – with its own generous kitchen, premium bathroom and small veranda. ā€œIt is a first step onto the property ladder,ā€ says Mr Alexander-Hatziplis, ā€œdue to a lower purchase price.ā€