A deep dive into the economic pressures, lifestyle shifts, and cultural values driving younger generations toward shared living spaces
Millennials (born 1981-1996) and Gen Z (born 1997-2012) represent the largest demographic cohort in history—over 140 million people in the U.S. alone, and 2.6 billion globally according to the United Nations. Their housing choices will shape real estate markets for the next three decades. And increasingly, they're choosing coliving.
According to a 2024 study by CBRE, 68% of current coliving residents fall into the millennial or Gen Z age brackets. But this isn't just about who happens to live in coliving spaces—it's about why these generations find the model particularly appealing. The reasons go far deeper than simple economics, touching on fundamental shifts in values, work patterns, and social expectations.
This article examines the data behind the trend, exploring how economic realities, technological changes, and cultural evolution have created the perfect conditions for coliving to flourish among younger demographics.
Sources: U.S. Census Bureau (2024), Pew Research Center, United Nations Population Division
Millennials and Gen Z aren't turning to coliving by accident. They face a unique combination of economic, technological, and social circumstances that make traditional housing models less appealing and coliving particularly attractive. Understanding these forces is key to understanding the trend.
Despite being the most educated generation in history, millennials have accumulated significantly less wealth than previous generations at the same age. This isn't opinion—it's hard economic data.
Source: Federal Reserve Survey of Consumer Finances (inflation-adjusted 2019 dollars)
Key Finding:
Millennials at age 35 had 60% less wealth than Baby Boomers had at the same age. This represents the largest generational wealth decline in modern American history.
Let's run the actual numbers for a typical millennial in a major U.S. city:
The Bottom Line:
For many millennials in expensive cities, traditional apartments are mathematically unviable. Coliving isn't a "lifestyle choice"—it's the only way to live in economic opportunity hubs without spending 60-70% of income on housing or commuting 2+ hours daily from affordable suburbs.
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Economic pressure explains why millennials can't afford traditional housing. But it doesn't fully explain why they prefer coliving over other affordable alternatives like suburban living or roommate-finding apps. The answer lies in fundamentally different values.
The Data: A 2023 Bank of America survey found that 78% of millennials value "experiences over possessions." This represents a fundamental shift from previous generations who prioritized accumulating assets.
"I don't want to own a couch. I want to live in a place where I can walk to concerts, have friends over easily, and change cities every year if I want. Coliving gives me that freedom."
— Survey respondent, age 29, tech worker (CBRE Millennial Housing Study, 2024)
Despite being the most "connected" generation digitally, millennials and Gen Z report record levels of loneliness and social isolation.
Coliving's Solution:
92% of coliving residents report feeling more connected to their community compared to previous living situations (Ollie Survey, 2024). Built-in community events, shared spaces, and curated resident matching address the friendship gap systematically rather than leaving it to chance.
The Shift: Pre-pandemic, only 7% of U.S. workers had remote work options. By 2024, that number jumped to 35% working remotely full-time and 58% with at least part-time remote work (McKinsey American Opportunity Survey).
Without daily commutes, remote workers can live anywhere. But working from a tiny studio apartment all day is isolating. Coliving offers dedicated coworking spaces within the building—separation of work/life without needing a commute.
83% of coliving residents work remotely (Common Living, 2024). This creates natural networking—residents work in similar fields, attend the same coworking sessions, and spontaneously collaborate.
Living alone while working remotely = extreme isolation. Coliving residents can work independently but have immediate social options for lunch, coffee breaks, or post-work activities.
Many coliving operators (like Selina, Outsite, Roam) offer global networks where residents can move between properties. A developer can work from Lisbon in winter, Bali in spring, and Austin in summer—all with the same operator.
Millennials and Gen Z are the most environmentally conscious generations. Deloitte's 2024 Global Millennial Survey found that 73% consider environmental impact when making major life decisions, including housing choices.
Carbon Footprint Impact: According to the World Resources Institute (2023), coliving reduces per-person housing carbon emissions by an average of 30% compared to traditional single-occupancy apartments. For environmentally-minded young people, this matters.
While both generations are drawn to coliving, their motivations and preferences differ in important ways.
| Factor | Millennials (28-43) | Gen Z (18-27) |
|---|---|---|
| Primary Motivation | Affordability + Community | Flexibility + Experience |
| Average Stay Duration | 8-12 months | 3-6 months |
| Privacy Preference | Private room essential | More open to shared rooms |
| Tech Expectations | Fast WiFi, smart locks | Full IoT, app-controlled everything |
| Community Engagement | Weekly events preferred | Daily social interaction expected |
| Career Stage | Mid-career professionals | Entry-level / students |
| Average Income | $65K (median) | $38K (median) |
| Homeownership Aspiration | 55% still want to own eventually | 34% interested in owning |
| Price Sensitivity | Moderate (will pay for quality) | High (most price-conscious) |
| Sustainability Priority | Important consideration | Top deciding factor |
Millennials see coliving as a practical compromise—a way to live affordably in cities where traditional apartments consume 60%+ of income. They're often in established careers but priced out of homeownership.
Typical Use Case: 32-year-old software engineer earning $110K in Seattle. Can't afford $3,200/month 1BR apartment. Chooses coliving at $2,100/month to save $13,200/year while still living centrally.
Gen Z views coliving as an ideal lifestyle, not a compromise. They prioritize experiences, community, and flexibility over traditional markers of "success" like homeownership.
Typical Use Case: 24-year-old digital marketer earning $52K. Could live in suburbs but chooses urban coliving for social life, proximity to cultural events, and ability to change cities easily. Views homeownership as "limiting."
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Not everyone celebrates the coliving trend. Critics argue it represents a failure of housing policy rather than an innovative solution. Let's examine these arguments honestly.
Critics like urban planning professor Dr. Mariana Mogilevich (published in Places Journal, 2023) argue that coliving is essentially "paying premium prices for what amounts to shared dorm rooms," and that the industry profits from housing scarcity rather than solving it.
Coliving providers respond that total cost matters more than cost-per-square-foot. Residents get amenities (gym, coworking, cleaning) that would cost $500+ separately, and "experiences over space" reflects genuine preference shifts.
Data Point:
87% of coliving residents in exit surveys report satisfaction with their living situation, and 43% actively recommend it to friends (Habyt Annual Report, 2024). If it were purely exploitative, satisfaction would be lower.
Housing advocates argue that celebrating coliving distracts from the real problem: structural housing affordability collapse. By presenting shared living as "innovative" rather than a symptom of market failure, it normalizes declining living standards for young people.
"My parents had a 3-bedroom house by age 30. I'm 35 sharing a kitchen with five roommates and being told I should be grateful for the 'community.'" — Common critique on social media
Industry advocates acknowledge the housing crisis but argue that coliving is a pragmatic response to reality, not an endorsement of it. The alternative isn't "everyone gets cheap houses"—it's longer commutes, living with parents into 30s, or avoiding opportunity-rich cities entirely.
The Reality:
15.3 million young adults (ages 25-34) live with parents in the U.S. (Pew Research, 2024)—up from 9.8 million in 2005. For many, coliving represents more independence than the alternative, not less.
Anna Weiner (The New Yorker, 2023) and other critics argue that VC-backed coliving companies are "monetizing friendship" and "productizing human connection," turning community—something that should be organic—into a billable service.
Operators respond that intentional community design works better than hoping it happens organically. Traditional apartments offer zero community programming—residents rarely know neighbors' names. Professional facilitation creates conditions for connection that modern life otherwise lacks.
Research Supports This:
Oxford University study (2023) found that residents of housing with "intentional community design" reported 3.2x higher levels of social connection compared to traditional apartment dwellers—even when controlling for self-selection bias.
Both sides have valid points. Coliving is simultaneously:
The Truth:
Coliving is both an innovative adaptation to millennial/Gen Z preferences AND an accommodation to systemic housing affordability failure. The model works for many people, but it shouldn't be the only option available to an entire generation. Ideal future: coliving exists as one choice among many, not the only viable path to urban living for young adults.
What does millennial and Gen Z adoption of coliving mean for the future of urban housing?
Millennials turned to coliving primarily because traditional housing became unaffordable—they have 60% less wealth than Boomers at the same age, face 47% higher rents, and carry massive student debt. For many, coliving wasn't a choice but a necessity.
But younger generations don't just tolerate coliving—many genuinely prefer it. Their values (experiences > ownership, flexibility > stability, community > privacy) align well with the coliving model. 78% prioritize experiences, 61% report serious loneliness, and 35% work remotely—coliving addresses all three.
While millennials see coliving as a practical compromise, Gen Z views it as an ideal lifestyle. With 73% reporting frequent loneliness and 34% uninterested in homeownership at all, Gen Z's entry into the housing market will likely accelerate coliving growth significantly.
Coliving works for many but shouldn't be the only option. The model's popularity reflects both genuine preference changes AND structural housing failure. A healthy housing market would offer coliving as one choice among many, not as the only viable urban living option for an entire generation.
Continued Growth: As Gen Z enters prime renting years (ages 25-35), coliving market could reach $30B+ globally by 2035
Market Segmentation: Niche communities (family coliving, senior coliving, industry-specific) will emerge
Quality Standards: Industry consolidation around operators with strong track records and resident satisfaction
Regulatory Acceptance: More cities will create legal frameworks explicitly accommodating coliving
Housing Policy Shift: Major affordable housing initiatives could reduce coliving demand among "necessity" users
Remote Work Reversal: Return-to-office mandates could change housing location priorities
Economic Recession: Severe downturn could force consolidation or closures among operators
Generational Shift: As millennials age into 40s/50s, preferences may shift toward traditional housing
Most likely outcome: Coliving becomes a permanent segment serving 5-10% of urban renters—primarily younger demographics, remote workers, and those prioritizing flexibility/community over space/privacy.
Millennials and Gen Z aren't turning to coliving because they're lazy, entitled, or unwilling to work hard. They're responding rationally to unprecedented economic circumstances while also expressing genuine shifts in values around community, flexibility, and lifestyle.
The trend reflects both adaptation to necessity (housing unaffordability, student debt, wage stagnation) and authentic preference (prioritizing experiences, combating loneliness, embracing flexibility).
Understanding why younger generations choose coliving requires acknowledging both realities—neither dismissing it as mere exploitation nor celebrating it as pure innovation. It's complicated. And that's okay.
The question isn't whether millennials and Gen Z will continue turning to coliving—they will. The question is whether society will create housing policies that make it one choice among many, rather than the only viable option for an entire generation.
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