Just 2000 tenancies of co-living units exist across Australia, but that number is set to increase fivefold.
The national supply of Australia’s co-living housing sector has surpassed 10,000 units, according to new research from Knight Frank released in its Co-living Report.
It’s a big milestone for this type of housing, which finds it roots in the boarding house model but is now considered a distinct housing type.
Co-living is one of several shared accommodation models. In this case, tenants rent self-contained studios while sharing communal facilities such as larger kitchens, living spaces and other amenities.
Currently in Australia, there are just 2000 operational units, but with a major pipeline in the works. A further 4159 are now under construction or have received development approval, and 3647 are in the planning phase or currently proposed.
Based on those figures, it’s clear that co-living is in the midst of a boom.
In part, the sector’s growth can be attributed to rising confidence among developers and investors that the model is ready to play a bigger role in boosting housing supply in Australia – at a time when more and more people are considering different models of housing.
For many tenants it’s the community appeal that attracts them to this model, with co-living facilities including a variety of spaces meant to foster connection, such as rooftop gardens, co-working areas or social lounges, paired with programmed events.
There’s also the factor of simplicity, with weekly rental rates typically “all-inclusive”, bundling rent with utilities, Wi-Fi and furniture.
Lease terms in co-living properties start from as little as three months, bridging the gap between short-term stays and longer residential leases.
This flexibility opens the door to a wide range of occupiers, from relocating professionals seeking a city base to students needing accommodation near campus.
And its the element of flexibility that appears to be key in attracting residents. Approximately 38% of tenants in co-living facilities start off signing an initial contract for a length of three months, while 35% sign on for six months. Only quarter of tenants opt for 12 months or longer when they first move in.
This blend of short and mid-range commitments differs from the traditional rental market, where standard leases are typically fixed at six or twelve months, and where moving or breaking a lease can be costly.
Data from completed schemes operated by UKO, which runs and operates over 30 co-living assets across Australia, shows that co-living is most popular amongst younger age groups with almost 90% of tenants aged between 20 and 40.
The 20-to-30-year age group accounts for 72% of tenants, while 1 in 10 tenants are aged over 40.
Sydney is currently the frontrunner for co-living in Australia, hosting over 90% of completed co-living developments nationally — a total of 1639 units in operation.
This can be attributed to the New South Wales government providing a clear planning pathway for the model, first introducing it to the state’s planning system in its 2021 State Environmental Planning Policy.
This policy shift has enabled projects to progress more efficiently and unlocked development opportunities on sites where lower-density housing is less viable.
Elsewhere in Australia, there are 1110 units in the pipeline across Victoria, Western Australia and Queensland, representing an opportunity for growth as developers seek to test and adapt the model in different markets.
One of co-living’s strongest appeals is its ability to deliver affordability without sacrificing convenience. Because weekly rents typically cover furniture, whitegoods, utilities and internet, tenants avoid the upfront financial hit often associated with setting up a traditional rental.
Knight Frank’s analysis of completed developments in inner Sydney shows average rents start at $675 per week, compared to a privately leased apartment which averages $730 per week, not including utilities and furnishings, which rises to an estimated $880 per week.
Student accommodation, meanwhile, averages $780 per week for a studio.
Outside Sydney, co-living is still in its early stages. However, the model now has planning recognition, proven projects and a growing base of operational data.
As adoption increases, co-living could broaden housing diversity, speed delivery and follow the trajectory of Australia’s build-to-rent sector, which has already moved beyond its initial growth phase into wider expansion.
For developers, the model offers a way to maximise land use, create community-led assets and meet flexible rental demand. For tenants, it could deliver choice, adaptability and a more predictable cost structure.
Are you interested in learning more about buying and building new? Check out our New Homes section.
