The global housing crisis is not likely to end soon, and more and more tenants are seeking affordable and flexible accommodations and spaces, away from the typical rental or leasing arrangements that bind most tenants to fixed contracts.
The global sharing accommodation market is projected to reach $235.7 billion in 2032 from $120.8 billion in 2022, a compound annual growth rate (CAGR) of 6.4%. This growth rate has made shared living an increasingly popular business model among real estate owners. They help address the housing crisis, provide better cash flow, and increase social interaction among tenants.
Whether you’re an experienced real estate investor or a rookie in the real estate industry, here are some shared living business ideas for your real estate properties in 2025:
Shared living business ideas
Shared living can have various types, depending on the property you plan to rent out as a shared living (a single housing unit or a building) or the type and background of individuals renting your property:
Co-tenancy or coliving
Co-tenancy or coliving arrangements are shared housing where individuals rent private, furnished rooms in a single building. The building can often include communal spaces like fitness centers, lounge areas, and recreation areas to promote social interaction and a sense of community among tenants.
A real estate owner enters into a contract with its tenants, preferably through contract management software, to efficiently manage contracts for coliving arrangements. The primary target market for these arrangements is adult professionals or millennials who need a fully furnished living space with private amenities and access to communal areas to network and interact.
Flat-sharing or single-room occupancy
While co-tenancy or coliving focuses on high-demand housing markets, flat sharing or single-room occupancy provides affordable housing for low-income tenants who have access to small, single rooms in an apartment or home while sharing communal spaces like the kitchen, the garden, bathrooms, or living and recreation area with other tenants.
Individuals renting in your home or apartment in a flat-sharing arrangement typically need to communicate with each other to share the house maintenance responsibilities, like landscaping, cleaning, cooking, and other house rules that they are free to set between them—like house curfews and quiet hours.
Shared student housing
Students, typically college students, studying out of state, are one of the most typical tenants of a shared living arrangement due to its low cost and companionship with students living in the same housing.
Most real property owners renting out a home or an apartment for shared housing would typically rent it out to individuals in the same group—as in the case of shared student housing. Some of the advantages of letting out a shared housing targeted for students include:
- Purpose-built living for students is more attractive as it addresses their specific needs like fast Wi-Fi and common study areas;
- Shared student housing near schools and universities reduces the risk of non-occupancy of rooms;
- Ability to set fixed curfew hours;
- Students can be considered long-term tenants, especially those who rent your shared living starting from their first year.
Simply put, student tenants are recession-proof because, let’s face it—you can never run out of students, especially if your property is strategically located near universities. For example, a student with a two-hour break between their Attic Greek and Physical Education class can conveniently return home and rest in between classes with a shared housing property within walking distance from the school.
Group homes
If you want to use your rental property more philanthropically, consider converting it into a group home. A group home offers therapy, support, and supervision for individuals with complex health needs, such as young adults and teens with mental issues, behavioral concerns, and developmental disabilities.
As a business, making your property into a group home will require detailed attention to the following:
- Target market: Determine whether you want your group home to serve a wide range of individuals or just a specific group (e.g., individuals with developmental disabilities).
- Legal and regulatory requirements: Group homes should focus on providing the best care for their residents. Thus, it is essential to comply with legal and regulatory requirements, including permits and safety standards, when planning to operate one.
Shared housing for remote workers
If you have a property for shared housing, consider renting out your spaces to remote workers or digital nomads. Because flexible working arrangements are popular, these people use project management tools to seamlessly connect to their workplace without appearing in the office.
Your shared housing for remote workers and digital nomads, to become profitable, should focus on what matters to this target market the most, including:
- Flexibility of lease terms, focusing on short-term leases instead of binding them to long-term contracts;
- Provide fast and reliable internet connection both in the private and communal spaces;
- Fully equipped amenities, like kitchen and laundry facilities;
- Offer a work-friendly environment, like having in-house coworking spaces with ergonomic facilities.
Shared office spaces
Shared office spaces can also be a lucrative business idea for your real estate property, especially for startups in digital marketing, professional services, or clothing businesses switching to flexible working arrangements or prefer the cost-savings opportunities of shared office spaces.
Real estate owners with accommodations ready for shared office space should also consider renting or leasing space for business within the same or similar industry to take advantage of a niche target market and offer goods and services that specifically cater to their needs.
Corporate housing
Some companies, especially those in far-flung areas, arrange corporate housing to accommodate the needs and accessibility of their employees to the workplace. Examples of businesses and industries that usually turn to corporate housing are those in the manufacturing and production industry whose factories and workspaces are far from city centers or areas with accessible transportation.
Brooke Webber, Head of Marketing at Ninja Patches, says, “Businesses and corporations that offer corporate housing benefits often offer this perk to their employees to increase retention and reduce turnover, especially for those in the production and manufacturing industry with employees working round-the-clock shifts. Real estate owners with accommodations near these businesses can rent the property directly to the corporation to serve as corporate housing for their employees, ensuring a long-term and assured passive income stream.”
Conclusion
The global housing crisis is also adversely affecting real estate owners as much as it does those looking for affordable homes. As house prices increase, property owners have difficulty selling and renting out properties to single families and individuals at an affordable rate without sacrificing their profits.
With shared living business ideas—including coliving, flat sharing, shared student housing, group homes, shared office spaces, and corporate housing—there are more opportunities for real estate owners to rent out their properties without relying on single long-term contracts.
While shared living typically offers higher rental yields, it is also essential to consider the challenges real estate owners often face, including a higher turnover rate, especially for niche target markets. Considering entering the shared living business, weighing its pros and cons, and creating a well-researched business plan are key to making your shared housing business profitable in the long term.
