“Co-living” is the new buzzword doing the rounds. But unlike plenty of fads that burn bright and fade fast, this one has legs, and more importantly, it has numbers.
As urban housing pressures increase and tenant expectations shift, co-living is moving from niche experiment to mainstream asset class. For developers and investors, it’s shaping up as one of the smartest ways to future-proof portfolios and respond to market demand.
The World’s Already Onto It
Co-living isn’t some untested theory – it’s already proving itself overseas. In the UK, the sector has exploded, with the number of operational co-living homes jumping by 65% in 2023 alone. That kind of growth doesn’t happen by accident. It’s being driven by strong tenant demand and a growing wave of institutional investment that’s pouring billions into the space.
Over in the US, it’s the same story. Analysts are forecasting double-digit growth over the next decade, with the market tipped to be worth billions by 2030.
The takeaway? Co-living is a proven model that’s already reshaping urban housing in major global markets. Australia may be playing catch-up, but that’s exactly where the opportunity lies.
Australia’s Time to Shine
And the catch-up game is already underway. Right here at home, we’re starting to see co-living projects get real traction.
In Parramatta, a $70 million mixed-use project is transforming what was once a car park into 273 co-living rooms with communal kitchens, workspaces and social areas – proof the concept is shifting from “niche” to mainstream. South Australia has gone a step further with its Future Living Code Amendment, enabling flexible “house within a house” arrangements that signal government recognition of new living models.
Demand is the real driver. With vacancy rates below 1% in many cities, younger generations are increasingly locked out of ownership, while professionals and students seek flexible, community-oriented housing.
ALC has recognised this gap and is stepping in to meet the growing demand. Co-Living by ALC Projects is designed to provide a tailored, end-to-end solution – from compliant, pre-approved designs to optional turnkey fit-outs and professional community management. By handling the moving parts, ALC ensures Co-Living projects are not just built, but delivered effectively and ready for the market.
With demand outpacing supply and policy settings opening doors, ALC’s Co-Living is the opportunity of now.
Why Investors Are Paying Attention
Stronger Yields & Occupancy – Co-living typically delivers higher rental yields than traditional rentals, thanks to multiple income streams per property.
Portfolio Resilience – Co-living is a way to diversify income and hedge against downturns. Demand for flexible, affordable living doesn’t dip when the market tightens – if anything, it rises. That makes co-living a powerful stabiliser in mixed portfolios.
Sustainability – With shared kitchens, workspaces, and living areas, co-living residents naturally use fewer resources per person. Lower energy consumption, smarter land use, and less construction material per capita = ESG credentials that developers and investors can leverage with confidence.
Positioning Co-Living for Your Clients
So, how do you talk about Co-Living if you’re pitching it to your clients? Keep it simple:
- Future-ready: Responds to generational demand and shifting lifestyles.
- Financially sound: Higher yields, strong demand signals.
- Community-positive: Supports wellbeing, affordability, and sustainability.
The winners in this space aren’t those waiting for certainty, but those moving with emerging trends before the pack catches on.
Our team can provide an in-depth Information Pack with available locations, inclusions, and projected rental performance.
Ready to explore Co-Living as part of your clients’ investment strategy? Let’s talk.
