Quarters, a major European co-living company, plans to invest $300 million toward building new developments across the United States and becoming the nation’s largest co-living operator by 2022, according to an article in Curbed.
Millennials are the primary target demographic for the co-living industry. Due to financial issues and their tendency to lead nomadic lifestyles, young adults are typically the most interested in shared housing spaces. By offering pre-furnished bedrooms, shared common spaces, and amenities such as 24/7 laundry access, cleaning services, Wi-Fi, and community events, co-living companies like Quarters want to provide Millennials with more affordable access to increasingly overpriced, metropolitan neighborhoods.
Quarters’s $300 million expansion deal was made possible by a $1.1 billion fundraiser led by its parent company, Medici Living. Medici’s goal is to buy and build up to 35 co-living facilities throughout Europe, and over 1,300 new residential units in the U.S. within the next three years, according to Curbed.
The Berlin-based company already operates co-living spaces in New York City and Chicago, but it plans on expanding its footprint to cities like Boston, Denver, Los Angeles, Philadelphia, San Diego, and Seattle—all of which are teaming with millennials and startup activity. Residential projects at these sites could house between 100 and 300 people, while new spaces in New York could hold up to 500.
Like Quarters, other co-living firms have upped their ambition, diverting their attention away from small group homes to focus on large-scale high-rises. WeWork, the massive, New York-based co-working company, recently unveiled “WeLive,” its latest co-living project with its first apartment building located at 110 Wall Street in Manhattan. The Manhattan high-rise, whose private studios start at $3,050 a month, offers apartment dwellers flexible leasing, access to fitness classes, cleaning and laundry services, potluck dinners, and a digital social network, all conveniently accessed through a mobile app. According to Curbed, WeLive, if successful, plans to eventually house 600 people throughout the 20 floors of the Lower Manhattan high-rise, as well as build more developments in other major U.S. cities.
While co-living is not a new or innovative concept, companies like Quarters and WeWork have transformed it into a business model to take advantage of the fluctuating economy and provide young adults with a service that can make city living more affordable and hospitable.