Living, Differently

Key findings Contents WHERE NEXT? Melbourne, Brisbane and Perth show the strongest potential beyond Sydney, but clearer state-level definitions and approval pathways will be essential to convert demand into delivery. 5 6 8 10 14 18 20 23 The Future of Co-Living in Australia 3 Living, Differently 2 MEETING RENTAL DEMAND Co-Living can add flexible, professionally managed homes to an undersupplied rental market, where rents rose 5.5% in the year to September 2026 and rental households dedicated around 34% of pre-tax income to rent, the highest share on record. LIVING ALONE 3.4–4.0 million Australians are projected to live alone by 2046, around 50% more than in 2021. MOBILE DEMAND Around 2.8 million people held a temporary visa in June 2026, including international students, working holiday makers and skilled migrants; approximately one in four were international students. VALUE PROPOSITION across two Sydney assets, Co-Living offered a 12% saving against the average one-bedroom rent in the surrounding suburb, after accounting for furniture, utilities and access to shared amenity. RAPID GROWTH around 4,700 Co-Living units are currently operational, with supply expected to reach approximately 6,300 by the end of 2027. The wider pipeline, including projects under construction, approved or with planning submitted, could lift total supply to around 13,700 units by 2030, if all schemes proceed. SYDNEY LEADS The city accounts for 79% of operational units and 82% of pipeline supply, reflecting strong demand fundamentals and the greater certainty provided by NSW’s dedicated planning framework. SCALING UP Completed schemes average 48 units, compared with 94 units for projects under construction, as operators pursue greater efficiency without losing the sense of community. INVESTMENT MOMENTUM Income-producing assets in the selected transactions traded at yields of 4.5%–5.7%, with buyers spanning specialist operators, private investors and domestic and offshore capital. MARKET OUTLOOK As pipeline schemes reach stabilisation and new development becomes more challenging, competition for operational assets should strengthen, supporting liquidity and transaction activity. UKO, Randwick INTRODUCTION CO-LIVING DEMAND CO-LIVING’S VALUE PROPOSITION CO-LIVING SUPPLY KEY TARGET MARKETS PLANNING FRAMEWORKS INVESTMENT & CAPITAL OUTLOOK DESIGN & OPERATIONAL CONSIDERATIONS