Dive Brief:
- The owners of a Syracuse, NY, co-working space startup have started construction on two floors of dorm-like rental units, hoping to draw millennials away from the suburbs and into the city with a ready-made social environment and cheaper rents, The Atlantic reported.
- Partners Troy Evans' and John Talarico's Commonspace will feature 21 microunits priced at $700-$900 per month, each 300 square feet and fully furnished, with a kitchen, bathroom, bedroom and living space. All units are centered around common areas, including a chef’s kitchen, game room, TV room and rooftop garden, according to The Atlantic reported. Talarico and Evans are also hiring a social engineer to plan weekly dinners and other events, as well as to mediate any disputes between residents.
- Talarico and Evans told the Atlantic they hope the co-living experience will keep their tenants happier and less lonely. If successful in Syracuse, the pair plans to expand the concept to other cities in New York and, possibly to Cleveland, OH.
Dive Insight:
Although the single-family market is finally starting to pick up steam, the multifamily sector is still miles ahead. But with soaring rents, some millennials have been forced to rent apartments far away from city centers. This startup hopes to capitalize on those customers and offer a cheaper solution that also appeals to the "millennial" lifestyle of smaller and more shared spaces in downtown hot spots.
"We’re trying to make it a neighborhood in a building," Evans told The Atlantic. "You’re not staying in your room watching TV all day. You’re eating in the restaurants, going to the coffee shops and the bars, and doing it as a group."
Talarico and Evans are targeting millennials aged 25 -34 with the concept, but the appeal of the cozy living arrangements have reached other demographics as well, including empty nesters and young couples.
Although Commonspace's focus is very narrow, this trend toward smaller living spaces with more shared areas could offer inspiration for builders looking to reach the elusive millennial buyer.