![]() ![]() The company, which was founded in 2015 in Brooklyn, today manages 7,000 bedrooms in 80 buildings in places like Birmingham, Ala. “The companies that came up in 20, most of them no longer exist,” said Brad Hargreaves, the founder of Common, an industry pioneer. Others have merged or acquired rivals, but many have closed. And the headwinds have forced some providers to adapt by embracing a hotel-style model with shorter stays, increasing staffing and heightening scrutiny of potential tenants. “We match people who have the same interests,” said Sergii Starostin, who helped found Outpost Club of New York in 2016.ĭespite recent growth, the industry is facing stiff challenges, including unhappy tenants, increased legal scrutiny and site shortages. Now, many operators want to be known less as landlords than as tech platforms that eliminate the headaches of cobbling together roommates and managing apartment budgets. ![]() The business model behind co-living has evolved in the last decade, when start-ups like Starcity operated large portfolios of buildings converted into co-living facilities. Because rooms are rented separately, apartments carved up for co-living can reap rents that are up to 50 percent higher than those involving typical layouts, giving landlords a powerful incentive to embrace co-living. The number of bedrooms either available or in development across the country surged 20 percent to 74,000 in 2022, from about 62,000 in 2020, according to data from Cushman & Wakefield, a commercial real estate services company.
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