Across the United States, the cost of housing has soared to record highs, leaving millions of renters burdened by monthly payments that eat up more than 30% of their income. In cities like Washington, DC, San Francisco, and New York, the challenge of finding an affordable apartment has become almost impossible for young professionals and lower- to middle-income households. But a new housing trend, once dismissed as nothing more than “adult dorms,” is emerging as a serious contender in the search for solutions: co-living spaces.
For renters like Jett Jasper, a 37-year-old communications professional, co-living offered not just a way to save money but also the chance to build community in a new city. Jasper pays $1,400 per month for a fully furnished room in a five-bedroom co-living apartment in Washington, DC — far below the city’s median rent of $2,155. With included amenities like cleaning, WiFi, and a vetted roommate process, the convenience was unbeatable. For him, co-living eliminated the headache of Craigslist roommate searches and turned the stress of moving into a smoother transition.
Jasper’s experience reflects a growing realization: co-living is no longer just a lifestyle choice for twenty-somethings — it could be a key to addressing the nation’s housing crisis.
What Exactly Is Co-Living?
At its core, co-living is a modern twist on the age-old idea of shared housing. Instead of traditional leases where roommates find each other, co-living companies rent out individual bedrooms within a larger shared apartment. Residents share kitchens, living rooms, and sometimes bathrooms, while the property management company handles vetting, maintenance, and in some cases, even housekeeping.
Unlike Craigslist arrangements or traditional roommate setups, co-living often comes with added perks:
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Fully furnished rooms
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Flexible lease terms
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Utilities, WiFi, and cleaning included
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Community events and social programming
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Professional roommate matching and background checks
For digital nomads, young professionals, and those new to a city, co-living offers affordability without sacrificing lifestyle — a balance that has become harder to achieve in America’s most expensive housing markets.
From “Adult Dorms” to Serious Housing Innovation
When co-living first gained momentum in the mid-2010s, it was heavily marketed to millennials and Gen Z renters who were priced out of city apartments. The concept was often portrayed as “adult dorms” — communal living with a social twist. Critics dismissed it as trendy, unsustainable, or only appealing to those unwilling to “grow up” and live alone.
But co-living’s reputation is changing. As the housing affordability crisis deepens, policymakers, developers, and architects are recognizing that co-living can cut costs, maximize space efficiency, and create vibrant communities in cities where housing supply is scarce.
According to the U.S. Census Bureau, nearly half of renters in 2023 were considered “rent-burdened.” For these households, co-living provides an option to pay less while enjoying amenities typically found in luxury apartment complexes.
The stigma of co-living is fading, and its evolution is showing that it could be far more than a social experiment — it might be a housing solution with staying power.
Converting Offices Into Co-Living Spaces: A Game-Changer
One of the most innovative directions for co-living is repurposing empty office buildings into residential housing. The COVID-19 pandemic accelerated the rise of remote and hybrid work, leaving downtown business districts across the country full of vacant office towers. These empty spaces represent both a problem — declining commercial property values — and an opportunity.
Research by Gensler, a global architecture and design firm, in partnership with The Pew Charitable Trusts, examined how converting offices into co-living units could address both housing affordability and downtown revitalization. Their model showed promising results:
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25% to 35% cost savings compared to standard office-to-residential conversions, thanks to preserving existing layouts and centralizing plumbing/electrical systems.
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Shared kitchens, bathrooms, and living spaces designed for each floor, reducing renovation costs while maximizing density.
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Affordable rental pricing: In Chicago, for example, a co-living double unit in a converted office could rent for as little as $750 per month, compared to the city’s $1,663 median rent.
This model could unlock tens of thousands of affordable units in cities struggling with high rents and declining downtown economies. By tackling both challenges at once, co-living conversions offer a uniquely practical solution to a dual urban crisis.
The Appeal of Co-Living for Renters
Why are renters increasingly drawn to co-living? It comes down to a mix of cost, convenience, and community.
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Affordability
Co-living rents often undercut traditional apartments by hundreds of dollars per month, particularly in major metropolitan areas. With inflation and stagnant wage growth, lower monthly housing costs are a lifeline for many. -
Convenience
Flexible leases, furnished rooms, and included utilities eliminate many of the upfront and ongoing expenses associated with renting. Moving in can feel as simple as checking into a hotel. -
Community and Networking
For newcomers to a city, co-living provides an instant social network. Organized events and shared spaces encourage interaction, reducing loneliness and isolation. -
Reduced Risk
Professional roommate vetting and landlord oversight minimize the risks of unsafe or unreliable roommates, a common fear when renting rooms independently.
Challenges and Criticisms
While co-living offers undeniable benefits, it is not without challenges. Critics raise concerns about:
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Privacy: Sharing kitchens, bathrooms, and living spaces can be uncomfortable for those who value solitude.
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Stability: With flexible leases and higher turnover, co-living spaces may feel transient compared to traditional apartments.
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Regulatory Issues: Zoning laws in some cities limit shared-housing developments, slowing expansion.
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Scalability: While popular in major cities, co-living has yet to prove itself in smaller markets.
These issues suggest that while co-living is promising, it must evolve thoughtfully to be a long-term solution rather than a temporary trend.
Co-Living and the Future of Housing
Despite its criticisms, the momentum behind co-living is strong. Data from RentCafe shows that office-to-residential conversions are booming, with 71,000 apartment units under development in 2025 — a 28% increase from the previous year and a staggering 206% increase since 2022. Many of these new units will incorporate co-living models.
Cities like Los Angeles, Chicago, Washington, DC, and Seattle are experimenting with co-living developments as part of their housing strategies. Policymakers are increasingly supportive, recognizing that without creative solutions like co-living, supply shortages will persist.
The bottom line? Co-living is maturing into a legitimate answer to the housing affordability crisis, offering cities a scalable way to expand housing options while breathing new life into underused spaces.
Conclusion
What was once mocked as an “adult dorm” trend is now shaping up to be a powerful tool in solving the U.S. housing crisis. For renters like Jett Jasper, co-living means affordability, convenience, and community. For cities grappling with vacant offices and rising rents, it presents an opportunity to revitalize downtowns while creating desperately needed housing.
While challenges remain, the evolution of co-living — especially through office-to-residential conversions — could mark a turning point in how Americans live in cities. The stigma is fading, and the potential is growing.
As Terry Hogan of Gensler put it: “Co-living is evolving and becoming quite attractive in a lot of markets across the country right now. And that is, I think, reflective of the needs of renters.”
