Better together: report tips boost in co-living arrangement
Seems that two wallets are better than one. Co-living is the compromise if some Aussies want to keep a roof over their heads.
IT used to be called a share house (think Friends or The Young Ones) but now, it’s an official government-approved housing initiative known as co-living.
This modern form of communal living sees residents rent a private room in a furnished complex with shared common areas like kitchens, lounges and bathrooms.
There’s usually one monthly fee payable to professional management that includes utilities, wi-fi, and cleaning.
According to Knight Frank real estate, it was one of the hottest sectors in 2025 commercial property and set for further strong growth in 2026.
The firm’s The Co-Living Report found Australia’s total national supply has passed 10,000 units considering those under construction or planned.
More than 90% of completed units are in Sydney, with 1,639 units in that market.
“Co-living has established itself in Australia as a genuine alternative to traditional housing types,” said Knight Frank partner John-Paul Stichbury.
“For now, NSW has dominated… with a clear and supportive planning pathway. But co-living is beginning to gain traction in other states.”
Knight Frank’s analysis found there are around 1,110 units in the pipeline in Victoria, Queensland and Western Australia.
It also found co-living schemes are getting larger, with the average number of units at 37, rising to 60 for those under construction, and 130 for some proposed projects.
Almost 90% of tenants are aged between 20 and 40, and most are working professionals. 31% are students.
Knight Frank’s Head of Alternatives Tim Holtsbaum said co-living was attracting increasing interest from investors.
He described it as “a product that is highly efficient and derives a relatively higher cashflow on a per square metre basis compared to its peers.”
Co-living units in inner Sydney rent for an average $675 a week compared to $730 a week for a one-bed apartment, and $780 for international student accommodation.
