Part
01
of one
Part
01
I want to understand the co-living market in the US. This includes number of companies, what differentiates them, how much venture capital money they have raised, number of locations and where, projected revenue numbers, etc. Some example companies includes Common, Starcity, WeLive, HubHaus, Roam, and Outsite.
Hello! Thanks for your question seeking to understand the co-living market in the US, including the main players, service areas, their financial, offerings and projections. The short version is that Common, WeLive, and Ollie are the three key players in the US co-living market. Common has raised $23 million in venture capital, WeWork has invested $3.6 billion in WeLive, and Ollie, has secured $150 million construction loan for a construction project on Northern Boulevard. Additionally, WeLive expect to be making $636million by the year 2018.
Below you will find a deep dive of my findings.
Methodology
I searched corporate websites, industry reports and trusted media sites. First, I used keywords such as "co-living industry, US", "co-living companies, US" etc. Most sources (if not all) seemed to suggest that Common, WeLive, and Ollie were the key players in the U. S market. The number of co-living companies in the US haven’t been compiled previously, so we have come up with a reasonable number based on media coverage, industry websites, and Owler competitor lists. However, in the scope of a single Wonder request, we were only able to find competitive analysis information for the top three companies. Please submit subsequent requests if you would like a competitive analysis on any of the other companies mentioned here.
Information on the top three companies' financials wasn't publicly available either; reason being, these are private startups and co-living is “at a crucial moment in its infancy.” Proceeding further, I scoured the net for leaked financial from any of the companies. Gladly, I found one for WeLive.
MARKET OVERVIEW
According to Bisnow, co-living is a concept of housing where houses are "built with smaller private spaces in exchange for lower rents, more convenience, larger shared spaces and a sense of community."
The concept of co-living originated in the US in 2006, envisioned by two brothers, Christopher and Andrew Bledsoe, who later founded Ollie. Ollie’s first building was put up in mid-2015 in New York City. They spent the next 8 years from 2006 to 2014 learning about the concept, seeking approval and funding.
Although there are no public records of how big this industry is, its market size could well be the $200 trillion real estate industry, which the co-living startups are trying to shake up. However, it is safe to say that the rise in “co-living does not necessarily mean the death of traditional home rental and ownership.”
The emergence of co-living is attributed to the fact that there is an “epidemic of loneliness” rising in US. As a result, co-living companies are aiming to provide a lasting solution to this epidemic.
A major challenge “for co-living companies could be converting short-term renters into long-term enthusiasts.” In addition, startups are warned not to expand aggressively, pointing to the fall of the Campus, a co-living startup that grew so aggressively.
The US co-living market is considered a very attractive market. A recent press release by Medici Living Group, “Europe's largest co-living provider”, announced that they had moved to the US market for a chunk of the opportunities it provides. In fact, letting for its very first building took off in March 2017. Property Markets Group (PMG), a giant developer in US, is entering the co-living market with a new branch of the company called PMGx to compete with WeLive, Ollie, Common, and other startups (Node, Krash, and Pure House). They are going bigger with plans to build 3,500 units in both New York City and Miami in the next 5 years. PMGx tenants in Chicago “pay as low as $1,000 a month to rent a room than the entire apartment.” On the other hand, HubHaus another startup has locations in “a dozen California cities.”
We have put together a list of co-living companies and startups operating in the United States. We have not included private homes that are currently being rented as co-living spaces. Please be aware that there may be other, smaller companies we have missed, but in our research this is a reasonably comprehensive list.
Common
WeLive
Ollie
Node
Krash
Pure House
PMGx
Medici Living Group
HubHaus
OpenDoor
Roam
The Collective
Lyf
Podshare
The Nook
Common
Common is a co-living company headquartered in New York. It has 400+ members, 14 homes located in 4 cities (New York City, San Francisco Bay Area, Chicago, and Washington, Dc). Common is referred to as Brooklyn’s king of co-living. It offers members, "private bedroom, fully furnished, high-end kitchen, weekly cleaning, basic supplies, free on-site laundry, transfers, free high-speed Wi-Fi, and property services." Rent for a Craigslist room in the 4 locations can be anything from $1,100 and $2,100 while a traditional studio from $1,600 and $3,100. Common has raised $23 million in Venture capital and operates more properties than its competitors.
WeLive
WeLive, headquartered in New York, is a subsidiary to WeWork, an American company providing shared workspace to businesses. It has locations at Lower Manhattan in NY, and Crystal City in Arlington, VA. Rent for private studio starts from $1,500/month and $3,050/month, depending on the location while that of Four-bedrooms at $3,700/month and $7,600/month. WeLive advertises their perks as including: “Beds and couches, towels and linens; Community Chef’s Kitchen, Laundry/Arcade and Yoga Studio; Full-time Community concierge and housekeeping team; Fully hooked up units with HDTV s, in-ceiling wireless speakers and sensor-regulated environmental controls; Flexibility; Premium Cable, high speed Wi-Fi and general utilities, included at a low cost; Community engagement through the WeLive Mobile App; Refreshments including fruit water, micro-brew coffee, and tea available to Members daily.” We-Work has invested $3.6 billion in We-Live. However, with its global presence and 90,000 members in over 100 locations across 14 countries, We-Work, has the potential to tie-up the game as compared to its competitors. A leaked presentation from WeLive predicts that it will be making $636million by the year 2018. Adam Neumann, founder of WeWork, “confirmed to the Guardian that he expects WeLive to have as many as 34,000 members by 2018.”
Ollie
Ollie is a co-living company with headquarters in New York. It has locations in Los Angeles, Jersey City, Long Island City, Pittsburgh, and Manhattan. Its perks include "Move-In Ready, Smart Home Technology, Premium Wi-Fi & Television, Hotel-Style Housekeeping, Friends Included, Explore More, Amenity Network, and Affordable Luxury." Ollie has secured $150 million construction loan for a construction project on Northern Boulevard.
Conclusion
To wrap it up, Common, WeLive, and Ollie are the three key players in the US co-living market. Common has raised $23 million in venture capital, WeWork has invested $3.6 billion in WeLive, and Ollie, has secured $150 million construction loan for a construction project on Northern Boulevard. Additionally, WeLive expect to be making $636million by the year 2018.
Thanks for using Wonder! Please let us know if we can help with anything else!