Re-Opening the Door to Co-Living

Ireland’s housing crisis remains a pressing issue, with soaring rents and many individuals and families struggling to find affordable, suitable accommodation.

The ‘Draft First Revision to the National Planning Framework’ calls for 50,000 homes annually until 2040, up from 30-35,000 per year until 2027 in the current NPF. Experts warn this target remains conservative given pent-up demand, projected population growth, and migration trends. The 2022 Census revealed a housing deficit ranging from 212,500 to 256,000 homes. While new dwelling completions have increased to tackle this deficiency, from 18,072 in 2018 to 32,695 in 2023, future growth may face constraints due to infrastructure and resource limitations.

The housing options available are also limited. According to the Residential Tenancies Board, 63% of renters live in houses, 9% in apartments within converted houses, and only 27% in purpose-built apartments. Since the ban on bedsits in 2013 and co-living in 2020, the percentage of people aged 25 to 29 living at home jumped from 37% in 2013 to 68% in 2022, compared to an EU average of 42%. This indicates a need to reconsider alternative housing options, including co-living developments.

Co-living spaces offer shared living areas with private bedrooms and bathrooms, catering to those seeking affordable, flexible housing options. These innovative developments provide enhanced amenities and increased living space, surpassing conventional shared houses and some studio apartments. The current ban on co-living developments, introduced in 2020, restricts the housing market's ability to adapt to evolving needs. Lifting the ban on co-living could provide much-needed relief and housing diversity.

Traditional apartments and houses often come with prohibitive costs, especially in urban areas. Co-living offers a cost-effective alternative, allowing residents to enjoy city living amenities without the financial burden. For young adults starting their careers, international workers new to the country, and single individuals, this can significantly improve quality of life and financial stability.

Successful co-living developments, such as the brownfield redevelopment in Dún Laoghaire and the office retrofit in Rathmines, exemplify sustainable, compact growth aligned with national policy. Similarly, success stories of co-living developments in cities like Berlin, Amsterdam, and London provide a blueprint for Ireland. These cities have demonstrated that with proper management and design, co-living can be an attractive, high-quality, and sustainable option. Residents benefit from lower living costs and a sense of community, which combats isolation often experienced in traditional housing setups.

Critics argue that co-living is not suitable for everyone. However, the argument is not that it should replace all other housing types but that it should be one of many options. There should be diverse housing solutions to meet varied needs. Co-living is particularly suited to a demographic currently underserved by the existing housing market.

Instead of banning co-living, Ireland should develop robust standards to ensure these spaces are high-quality, flexible, accessible, and liveable. Clear guidelines and regulations can promote co-living environments that meet residents' needs and contribute positively to urban development. Furthermore, for co-living to succeed, it is essential to identify suitable locations, ideally within urban centres, near major employment hubs, and with access to robust public transport infrastructure. Co-living developments present a strategic opportunity in urban planning and commercial real estate. Transforming underutilised or vacant commercial properties into co-living spaces can revitalise city centres and efficiently use existing infrastructure. This adaptive reuse aligns with sustainable urban planning principles, reducing the need for new construction and minimising environmental impact.

Legislators should recognise that well-designed and strategically located co-living schemes can positively impact urban living. Lifting the ban on co-living developments in Ireland would diversify housing options, providing an affordable, flexible choice for young adults, new arrivals, and single individuals, fostering community, and making subdivided houses available for families. Embracing co-living can lead to a more inclusive and adaptable housing market in Ireland.