Co-Living: What Is It and Will It Survive COVID-19?
A housing option that was once utilized primarily by college students is becoming more popular among young professionals across the globe. With rent prices rocketing in many primary-market cities like New York, San Francisco, Seattle, Washington D.C., and Chicago, urban life is out of reach for many, unless they pool their living resources in a co-living situation. This trend can be a good opportunity for investors as well as a great way for young people to live in urban centers. But will it survive the pandemic?Will Co-Living Survive COVID-19?
Washington’s economic recovery is inseparably tied to the influence of COVID-19. Employment in Washington remains dull, although there are some hopeful indicators, including rental rate trends. According to Colliers International, as of this past summer, Washington saw a 480 percent increase in unemployment claims year-over-year, with 127,137 compared to 21,922 over the same period in 2019. Rental rates across Seattle continue to grow, reaching an average of $1,981 in July 2020. Meanwhile, annual rent growth has slowed since October 2019, according to Zillow.
Oregon’s economic recovery is similar to Washington’s and is tied to the direction of the COVID-19 pandemic. Oregon saw a 124 percent increase in unemployment claims year-over-year this summer, with 38,350 compared to 17,094 over the same period in 2019, according to Colliers International. Since August 2019, Portland’s rent growth has decreased while rental rates have still increased, reaching an average of $1,631 in July, according to Zillow.
Home prices in the Boise metro area continue to break records. In August, Ada County’s median home prices hit $400,000 for the first time. This is a 12.7 percent increase over previous years, meaning home prices have officially doubled in the area since late 2013. The cities of Boise, Meridian, and Nampa also set new records. For Boise, home prices reached an average of $379,900, up from last year’s average of $337,767, according to an article from We Know Boise Real Estate.