Co-living is gaining traction globally as a scalable, cost-efficient, and socially connected housing model—but in Canada, it remains stuck in pilot mode. Cities like Singapore and London have already embraced co-living, delivering thousands of units designed for affordability and density. In contrast, Canada risks falling behind without policy reform and investment.
Co-living flips the traditional rental model by offering private bedrooms with shared kitchens, lounges, and bathrooms—cutting costs and fostering community. It’s also environmentally friendly: co-living buildings use 10–20% less embodied carbon, and increased density can reduce per-resident carbon impact by up to 36%, according to Buildings and Cities.
Repurposing unused office buildings is a key advantage. Research from Gensler shows that retrofitting vacant properties can cut construction costs by 25–35%, with existing plumbing and layouts supporting efficient conversions. These retrofits can house three times as many residents per floor plate without compromising livability.
Globally, the model is thriving. Singapore has delivered over 9,000 co-living units, and Great Britain has 9,000 more—with 5,500 under construction. But in Canada, despite rising housing demand and interest from institutional capital, outdated regulations and financing frameworks are stalling progress.
Youth unemployment hit 13.5% in June—Canada’s highest since 2014 outside the pandemic. Housing affordability is worse: home prices have decoupled from real personal disposable income more severely than in the U.S., according to the Real Housing Price Index.
The emotional toll is evident. The 2024 World Happiness Report ranked Canadians over 60 eighth globally for life satisfaction, while those under 30 placed 58th. Social psychologist Jonathan Haidt’s The Anxious Generation links youth loneliness to weakened in-person connection—something co-living could help address.
Institutional capital is interested—but investing abroad. Pension funds are backing co-living in Europe and Asia, while Canada’s housing finance programs still favor traditional dwellings. CMHC incentives remain structured around micro-unit condos, even as condo sales plunge—75% in Toronto and 37% in Vancouver since 2022.
Globally, co-living operators use asset-light models like master leases and revenue sharing. Only 25% own their buildings outright, according to Everything CoLiving’s Global Report. This opens doors for struggling office landlords to partner rather than sell.
Canada’s Toboggan Flats demonstration project, backed by CMHC innovation funding, aims to convert empty offices into affordable co-living in just nine months. But without reforms to financing, zoning, and insurance, scaling remains a challenge.
The takeaway: Co-living isn’t just a market trend—it’s a generational imperative. It addresses affordability, speed, and social connection. Calgary’s downtown incentive program is a start, but broader action is needed. In the U.S., cities are already reclassifying office-to-residential conversions to reduce tax burdens and accelerate development.
Retrofitted buildings lease for less, deliver faster, and foster community in ways conventional apartments rarely do. Canada has the blueprint—it just needs the political will to build.
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