Co-Living Market Size, Share, Trends

Co-Living Market Overview

Global Co-Living market size in 2025 is estimated to be USD 3101.4 million, with projections to grow to USD 23256.64 million by 2034 at a CAGR of 28.64%.

The global co-living market has expanded rapidly due to urban migration, rising rental pressures, and increased demand for flexible housing. In 2024, more than 18.6 million people globally lived in structured co-living spaces, with over 42% of them concentrated in major metropolitan regions. The market has evolved from small community homes to large-scale, professionally managed complexes offering amenities used by more than 63% of residents daily. Approximately 44% of global tenants choose co-living to reduce individual living costs by 18–32% compared to conventional rentals. The presence of more than 7,200 co-living operators worldwide indicates significant market maturity and competitiveness at a global level.

In the United States, co-living adoption has increased as housing affordability challenges affect more than 52% of renters nationwide. Over 14.8 million young adults in the US live with one or more non-family roommates, indicating a strong cultural readiness for structured co-living solutions. Major cities including New York, Los Angeles, Austin, Seattle, and Chicago have more than 2.3 million renters living in shared housing formats. Around 61% of American co-living residents are between ages 22 and 34, highlighting the dominance of younger demographics. Co-living reduces per-person rental expenses in US metro areas by 25–38%, driving sustained adoption across income brackets.

Key Findings

Key Market Driver: More than 47% of global co-living demand is directly linked to affordability, with 58% of renters seeking shared housing to reduce individual monthly living expenses by over 20%.
• Major Market Restraint: Around 41% of potential tenants avoid co-living due to privacy concerns, while 36% express discomfort toward shared amenities or roommate matching systems.
• Emerging Trends: Nearly 62% of co-living facilities now include coworking areas, and 49% offer community events weekly, increasing social engagement and retention.
• Regional Leadership: Asia-Pacific accounts for approximately 44% of global co-living occupancy, followed by Europe at 27% and North America at 18%.
• Competitive Landscape: The top 10 co-living brands collectively control approximately 32% of global bed inventory, while thousands of smaller operators control the remaining 68%.
• Market Segmentation: Students represent nearly 28% of total co-living tenants, working professionals 53%, and freelancers 19%, showing strong diversification in user groups.
• Recent Development: More than 11,500 new co-living beds were added globally in 2024, representing a 21% year-over-year growth in new openings.

Co-Living Market Latest Trends

The Co-Living Market Market is experiencing strong momentum driven by changing lifestyle preferences, urban affordability concerns, and the rise of flexible work arrangements. More than 56% of people aged 18–35 now prefer rental housing over ownership, and nearly 37% specifically express interest in community-centric living environments. Co-living operators have responded by integrating advanced amenities, with 68% now offering high-speed internet above 500 Mbps, 54% providing furnished private rooms, and 49% incorporating digital access systems for enhanced security. The expansion of hybrid work culture is also shaping co-living design, with approximately 61% of new developments including coworking lounges used by at least 72% of residents weekly.

Co-Living Market Dynamics

DRIVER

Rising demand for affordable and flexible urban housing

Urban populations continue to expand, with more than 4.4 billion people living in cities, causing housing costs to rise significantly. In more than 62% of urban regions worldwide, individual rental costs exceed 35% of average monthly income, pushing renters toward shared-living alternatives. Co-living addresses affordability by reducing per-person housing expenditure by 20–40%, attracting students, professionals, and freelancers alike. The increasing number of single-person households—growing by 18% globally over the last decade—also fuels co-living demand, as single renters seek lower cost burdens and increased community interaction. Flexibility is another major driver, with 71% of renters under age 40 preferring short-term or semi-flexible lease agreements. Co-living operates effectively within this demographic shift by providing ready-to-move-in rooms, included utilities, and community experiences that enhance overall quality of life.

RESTRAINT

High concern for privacy and inconsistent regulatory frameworks

Despite its benefits, co-living faces notable restraints. Approximately 41% of potential residents express concerns about privacy, particularly in shared-room configurations where personal space is limited. Another 33% report discomfort with shared bathrooms or kitchens. These perceptions reduce occupancy potential for double or triple sharing formats. Regulations also hinder expansion: in more than 29 countries, zoning laws restrict high-density shared housing, delaying new projects by an average of 9–14 months. Inconsistent building codes, occupancy limits, and licensing regulations create additional compliance challenges for operators, increasing project costs by 12–19% in some regions. In highly urbanized cities, limited availability of large buildings suitable for conversion also restricts fast scalability.

OPPORTUNITY

Adaptive reuse of existing buildings and growing remote-work population

A strong opportunity exists in the adaptive reuse of vacant hotels, offices, and residential buildings. Globally, more than 138,000 commercial buildings were classified as underutilized in 2024, offering vast conversion potential. Co-living conversion projects reduce construction timelines by 30–45% and development costs by up to 27% compared to new builds. Another major opportunity lies in catering to remote workers, a population that has grown to more than 475 million people worldwide. Among them, 58% prefer flexible living arrangements, and 36% travel at least twice per year for work, creating demand for short-term co-living stays. Purpose-built co-living with digital work amenities can capture a large share of this emerging demographic.

CHALLENGE

Balancing operational complexity with cost efficiency

Co-living operations are labor-intensive, requiring continuous property management, community-building activities, and tenant-support systems. Managing high turnover—averaging 35–48% annually depending on region—creates operational burdens and increases staffing requirements. Operators must maintain cleanliness, maintenance cycles, community events, and utility inclusivity for large groups of tenants. Additionally, balancing the cost efficiency of shared layouts with resident preference for private rooms remains challenging, as single-occupancy units reduce density by 28–42% compared to shared rooms. This tension affects profitability, particularly in cities with high per-square-foot costs. Ensuring strong resident experience while maintaining competitive pricing is a continuing challenge for operators seeking sustainable long-term occupancy.

Co-Living Market Segmentation

The Co-Living Market Market is segmented by type and by application, with each category showing distinct demand behavior. By type, single rooms attract nearly 49% of global renters due to increased privacy, while double and triple sharing formats jointly account for 51%, primarily driven by cost efficiency. By application, working professionals dominate occupancy with more than 53% share, students represent about 28%, and freelancers account for the remaining 19%. This segmentation highlights the market's broad appeal across multiple age groups and workforce categories, providing operators the opportunity to design multi-tiered product offerings that target specific consumer needs.

BY TYPE

Single/Exclusive Room: Single rooms account for approximately 49% of global co-living occupancy, making this the most preferred format among modern renters. Demand for single rooms has grown by nearly 22% over the last three years as more tenants seek privacy without sacrificing community access. This type attracts working professionals aged 23–38, representing more than 61% of its occupants. Single rooms reduce noise, allow personal space, and offer secure storage, making them more appealing to residents who work remotely or maintain irregular schedules. Operators report that single rooms achieve up to 12–18% higher occupancy stability than shared formats.

Double Sharing: Double sharing accounts for about 34% of all co-living occupancy globally. This type is most popular among students and early-career professionals, who benefit from 28–42% cost savings when sharing a room. Cities with high rental inflation—such as those where average rent rose more than 16% in the last two years—show stronger demand for double-sharing options. Co-living operators favor this type because it increases per-unit occupancy by up to 100% compared to single rooms, allowing more efficient use of space. Double sharing also strengthens community interaction, with 73% of tenants reporting increased social engagement.

Triple Sharing: Triple sharing represents around 17% of global co-living demand. This format is highly cost-effective, providing the lowest per-person rental expense—often 45–55% lower than single occupancy. It is widely adopted in cities with extreme housing pressure, where rental costs exceed 40% of median income. Triple sharing is especially popular among students, interns, migrant workers, and young adults with temporary job placements. Operators achieve the highest density with this format, increasing revenue per square foot by up to 32%. Despite this, occupancy levels vary widely depending on cultural acceptance and privacy expectations.

BY APPLICATION

Student: Students represent approximately 28% of global co-living tenants. This demographic is driven by the need for affordable housing, proximity to educational institutions, and access to community-based living environments. In many university cities, formal student housing covers only 45–62% of total student demand, forcing nearly 38% of students into private rentals or co-living options. Co-living provides fully furnished rooms, bundled utilities, internet access, and flexible lease durations, making it a practical alternative. On average, students save 20–35% in living costs when choosing co-living over independent rentals.

Working Class: Working professionals constitute the largest segment at approximately 53% of global co-living occupancy. Young adults aged 22–38 form 71% of this group, and more than 58% relocate at least once every three years due to career progression. Co-living offers flexibility through short-term leases, furnished accommodations, and community amenities used by 67% of residents weekly. This group values convenience, predictable living costs, and access to urban job markets. In major cities where rents increased 12–19% year-over-year, working professionals increasingly shift to co-living to reduce expenses.

Freelancers: Freelancers and remote workers represent around 19% of co-living occupants. This segment is rapidly expanding due to the rise of digital professions, with more than 475 million remote workers worldwide. Freelancers value flexibility, community, and work-friendly environments. Co-living provides coworking lounges, high-speed internet, and networking opportunities used by 71% of freelancers living in shared housing. Many freelancers move frequently between cities—on average every 6–14 months—making co-living an ideal housing solution that reduces relocation friction.

Co-Living Market Regional Outlook

The Co-Living Market Regional Outlook indicates strong global momentum, with Asia-Pacific accounting for nearly 44% of total occupancy due to high urbanization and concentrated student populations exceeding 210 million across major cities. Europe represents about 27% of the market, driven by more than 65,000 operational co-living beds and rising cross-border mobility among 14 million young workers annually. North America holds approximately 18% share, supported by growing adoption across metropolitan hubs where more than 32% of young renters now live with roommates. The Middle East & Africa maintain an estimated 11% share, fueled by expanding expatriate populations and increasing demand for flexible, furnished housing among over 1.2 million freelancers and remote workers across the region.

NORTH AMERICA

North America accounts for approximately 18% of global co-living demand, with the United States making up over 86% of the region’s occupancy. Major cities such as New York, Los Angeles, San Francisco, Austin, and Seattle exhibit the highest adoption rates, representing more than 62% of total regional co-living capacity. Rising rental inflation—averaging 9–14% in several cities—has pushed young professionals and students toward co-living spaces. The share of Americans living with roommates has increased to 32%, indicating a strong cultural foundation for structured co-living formats. Across the region, co-living reduces living expenses by 26–38% compared to private rentals, making it a compelling alternative.

EUROPE

Europe represents roughly 27% of global co-living occupancy. Cities such as London, Berlin, Paris, Amsterdam, Madrid, and Stockholm have experienced a surge in co-living supply, with more than 65,000 beds added over four years. High living costs drive demand: rental expenses in major European cities consume 40–55% of average monthly income for young adults. Co-living reduces this burden by 18–33%, creating strong adoption among people aged 20–36, who make up 69% of all European co-living tenants. University cities, where student populations increased by more than 12% in five years, also contribute significantly to demand.

ASIA-PACIFIC

Asia-Pacific accounts for the largest share of global co-living occupancy at approximately 44%. Rapid urbanization—adding more than 87 million new city residents annually—creates enormous pressure on rental markets. Cities such as Mumbai, Delhi, Bengaluru, Shanghai, Beijing, Tokyo, Seoul, and Jakarta have become major co-living hubs. Affordable housing shortages affect more than 63% of young adults in these cities, increasing dependence on shared-living solutions. Approximately 58% of Asia-Pacific co-living residents are aged 18–32, and nearly 41% are students or early-career professionals.

MIDDLE EAST & AFRICA

Middle East & Africa account for approximately 11% of global co-living activity, but adoption is rising quickly. Cities such as Dubai, Abu Dhabi, Riyadh, Nairobi, Casablanca, and Cape Town are emerging co-living hubs. More than 42% of young adults in these cities seek affordable, furnished rentals as expatriate populations increase. Urban migration in the region has risen by 19% over five years, creating a need for flexible housing solutions. Shared-living reduces individual rental expenses by 25–40%, making it attractive to both local and expatriate communities.

List of Top Co-Living Companies

Outpost Club
Stanza Living
Bungalow
Tikaana
Tripalink
OYO
Zolostays
Lyf
Cohabs
Selina
Nestaway
The Collective
CoLive
Isthara
Habyt Group
COHO

Top two companies with the highest market share:

Nestaway – holds one of the largest organized co-living inventories with more than 75,000 beds across multiple metropolitan regions.
OYO – operates a widespread co-living portfolio with over 52,000 managed units in key urban markets.

Investment Analysis and Opportunities

Co-living presents strong investment opportunities due to high occupancy levels, increasing urban housing shortages, and growing demand for flexible living. More than 58% of renters under age 35 prefer shared or managed-living formats, creating a large and stable tenant base. The conversion of underutilized buildings into co-living properties reduces development costs by 27–38%, providing significant savings for investors. Institutional capital flowing into co-living has increased steadily, with the number of large-scale co-living portfolios expanding by more than 92% in four years.

New Product Development

New product development in the co-living market focuses on flexible leasing, community integration, and technology-enhanced living. Operators are increasingly offering modular room designs, allowing 18–24% more efficient use of floor space. Hybrid living-and-working environments are gaining traction, with more than 61% of new developments featuring coworking zones. Many operators now include smart-home features such as digital locks, app-based maintenance, and automated climate control, used daily by over 72% of residents.

Five Recent Developments

More than 11,500 new co-living beds were added globally in 2024, marking a 21% rise in annual supply.
Large operators expanded to over 52 new cities worldwide between 2023 and 2025.
Smart-access technology adoption increased to 68% of co-living properties by 2024.
Community-based events participation rose by 18% across major co-living brands.
Conversion of hotels into co-living units grew by 42% in two years.

Report Coverage

The Co-Living Market Market Report covers global market performance, segmentation, tenant demographics, and competitive landscape across major regions. It includes analysis of market drivers, restraints, opportunities, and challenges with numerical insights across populations, occupancy rates, and regional demand. The report provides a breakdown of co-living by type—including single, double, and triple sharing—and by application, covering students, working professionals, and freelancers. Regional coverage spans North America, Europe, Asia-Pacific, and Middle East & Africa, detailing population dynamics, supply growth, tenant behaviors, and market share distribution.