Co-Living and the Changing Housing Market

Knight Frank’s Residence Report 2026/27 focuses on the global luxury market, but one of its themes reaches well beyond luxury property:

People increasingly value the experience created around a property, not just the property itself.

The report describes a shift away from simply adding more amenities, towards things that are harder to replicate: a sense of place, community, human connection, privacy, service and belonging.

That raises an interesting question for Co-Living. Could its future be about much more than affordable accommodation?

Community Can Be an Investment Feature

Community is hard to put into a spreadsheet, but it shapes the resident experience. People who choose Co-Living often value social connection, convenience, lower household costs, flexibility, furnished accommodation and less isolation.

A well-designed Co-Living home can offer private living space, shared lounges, functional kitchens, outdoor space, laundry, fast internet and security, in a convenient location. But those features only have value if they solve a real need:

A successful Co-Living home doesn’t need to be luxurious. It needs to be useful, comfortable, well located and designed around the people who live there. You can read more about the advantages of Co-Living and how investing in Co-Living works.

The Surrounding Location Is Part of the Product

Co-Living doesn’t remove the importance of location. If anything, it makes it more important. Co-Living residents are often especially sensitive to public transport, commuting time, employment, education, healthcare, shopping and places to socialise.

A property that saves a resident real time every day can beat a cheaper property in a less convenient spot. So think about the resident’s day, not just the building:

Where do they work? How do they travel? Where do they shop, exercise and socialise? What happens when they leave the front door?

Yield Isn’t the Whole Story

Co-Living can produce higher rental income than conventional residential property. But a higher yield doesn’t automatically make a better investment. Ask:

• What are the gross rent, the operating costs and the vacancy assumptions?
• Who is the target tenant, and what competing accommodation exists?
• How easy is the property to manage, and who will manage it?
• What happens if the rental model has to change?
• Would an owner-occupier or conventional investor buy it later?

Income needs to be weighed against risk, costs, demand and exit options. We cover this openly in Co-Living Property Explained, Warts and All and our guide to Co-Living return on investment.

Co-Living’s Future Is About Better, Not More

The strongest housing models solve a real problem. For Co-Living that might be “I need somewhere convenient and affordable to live”, “I’ve moved to a new city and don’t know anyone”, or “I want my own space without the cost and isolation of living alone.”

Knight Frank’s report isn’t evidence that Co-Living will automatically outperform conventional property. What it offers is a clear view of how expectations are changing. As standard amenities become easy to reproduce, Co-Living’s differentiation comes from location, community, privacy, convenience, design, service and affordability.

At properT network, Co-Living is one of our specialities, but strategy always comes first. A high-yield property isn’t automatically an investment-grade property.