Coliving is Making a Comeback

March 23, 2023

Rise and shine! It's a new day and The Shaker is here to serve you the best mix of residential real estate news. Yummy yummy.

THE BIG SPLASH

Coliving is Making a Comeback

Coliving is a growing phenomenon in both the US and Europe, offering a short-term housing solution that builds social networks while being more economical than renting a full apartment.

  • Coliving is gaining popularity once again as rents in dynamic cities such as New York, Los Angeles, and San Francisco continue to skyrocket.

  • Coliving projects offer various lease terms, ranging from three to twelve months, providing flexibility to residents.

  • Coliving firms also offer resident service coordinators that help tenants advertise and organize events, outings and sports matches.

  • While coliving is commonly associated with younger tenants, it is gaining popularity with all age groups. The average age of a tenant living in a Common property is 28 years old. It is also appealing to people of all ages who want to live in a community that provides social interactions, especially with the effects of COVID-19.

  • Coliving developments, such as Domus in Amsterdam, are specifically designed to provide ample space for social interaction, with living rooms positioned to encourage such interactions.

  • Companies such as Common have to sell the concept to developers, convincing them that coliving is a profitable business model that offers a higher yield per square foot. In 2023, Common merged with Habyt Group, creating a combined entity of 3,789 units under management across Europe and Asia, with operations in several US cities, such as San Francisco and St. Petersburg, Florida.

A SCOOP OF DOWN PAYMENT

Down payments fell to lowest level in two years

Redfin, a real estate brokerage, has released a report indicating that down payments by typical U.S. homebuyers have fallen to their lowest level in two years, with a 10% YoY drop in January to $42,375.

  • Although the median down payment fell 35% from its June peak, it remains over 30% higher than pre-pandemic levels.

  • Low competition giving buyers the upper hand: high mortgage rates and economic turmoil have created slower competition, with buyers able to purchase a home without facing a bidding war and not needing to provide a large down payment.

  • High housing costs coupled with persisting inflation: Elevated mortgage rates, high home prices and inflation are still hitting budgets hard, causing buyers to allocate more cash towards mortgage-rate buydowns instead of their down payment.

  • Lower home prices: Home prices are still high but have fallen more than 10% from their peak in May 2022 and are down 1.5% from a year ago.

A SCOOP OF RENTS

8 Cities where rents are higher than 30% of renters’ income

Eight of the country's top 50 metropolitan areas "had a rent share higher than 30% relative to the median household income," with the least affordable markets being big coastal cities like Miami, Los Angeles, New York City, San Diego, and Riverside, California.

  • Despite rental price growth slowing, housing was actually less affordable for tenants in February compared to the previous year, according to a new report from Realtor.com.

  • February marked the seventh consecutive month of single-digit rent growth, with the median rent across the US's 50 largest metropolitan areas up a modest 3.1% from the same period in 2022.

  • However, rental prices were almost 21% higher than 2020's levels. Realtor.com warns that with the Federal Reserve's monetary policy continuing to tighten, there is expected to be a sustained period of high mortgage rates, keeping demand for rental properties high and driving up rental prices.

  • In its analysis, Realtor.com used a typical rule of thumb - that renters should spend no more than 30% of their income on housing costs - to gauge housing affordability in major cities nationwide.

A SCOOP OF CRAZY LISTING

Barbie Condo Goes Viral

A pink paradise known as the "Barbie Dream House" has caught national attention after being put on the market for $315,000 in Ann Arbor, Michigan.

  • Therese Antonelli, owner of Moving the Mitten Real Estate, is selling the 1,300-square-foot, two-bedroom condo which features a unique decor style that mimics the popular children's toy, Barbie.

  • The interior includes an all-pink kitchen with gold leaf custom cabinetry, a leopard print dining room and a Scarface-inspired living room.

  • There are also Valentine's Day-themed and pink bedrooms with walk-in closets full of Juicy Couture purses, pillows and jewelry.

  • The finished basement is a pink-paneled “glam room” makeup studio with leopard-print carpet and a fur-covered accent wall.

  • All four bathrooms have unique themes including a pink lipstick toilet seat in the half-bath.

  • The home’s owner, Annie Penta, who transformed the condo, said that the unit became part of her personal brand after adding pink accents over the years.

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