Cohousing Investment Properties: The Next Boomer Wave?
Investing in U.S. real estate in this economy is not for the faint of heart. How can anyone second guess the current real estate market? Investors are as likely to lose big as they are to win, but one trend that looks like it just might catch on is cohousing.
What is cohousing?
Cohousing started in Denmark in the early 1970s, and it still has a bit of a retro-hippie kind of feel to it, although it is currently undergoing a green 'eco-chic' upgrade for today's upscale, older market. Not quite a house and not quite an apartment community, cohousing combines the best of private living with communal perks like shared spaces for meals, play, and gathering. A cohousing community might look like a normal suburban neighborhood in some respects (upscale design, 'green' building materials and amenities) but it is much more interactive and communal than a typical suburban tract.
Cohousing communites typically share six characteristics that suburban neighborhoods do not:
- They all have a participatory process in place at move-in.
- They are specially designed to facilitate community interaction.
- They all have some shared facilities and some private ones.
- They are managed by the residents themselves
- Decisions are made by consensus.
- Independent income sources allow for innovation and independent living.
Woodward Lane, a Cohousing Development under construction in Olympia WA.
For example, a cohousing community might be set up so that three families have a common kitchen and meal area but separate living spaces, a common outdoor park and gathering space, and various on site facilities that can be easily accessed without motorized public or private transport. To varying degrees, most cohousing communities are much more self-contained and self-reliant than a suburban tract community. There may be a communal vegetable garden. Families or individuals may agree to share cooking or child care responsibilities.
In some ways, cohousing communities are kind of like the communes so popular back in the hippie era, only this time with running water, comfortable living quarters, and high end (but green) appliances and amenities. Cohousing is especially popular with the over-50 crowd of Boomers who fondly remember that era, but want more comfort than can be had in a place with dirt floors and goats running about.
Cohousing communities can be urban or rural, but they all focus on sustainable development and a green lifestyle that typically has some agriculture (even if only a shared vegetable garden) and lots of pleasurable places to walk built right into the initial design. Most cohousing communities are built as a group project, so that all members of the community have input on what features will be included in the final design.
Cohousing communities are not necessarily inexpensive. In fact, for now, they tend to be pricier than conventional neighborhoods and suburbs. The 19-unit multi-generational Woodward Lane cohousing unit currently under construction in Olympia Washington features homes that average between $270,00 to $420,000 in price. At this writing, only three spots in the community are still available.
With a record number of American Baby Boomers about to hit retirement age, and with oil and gas still volatile and the the future of the American automobile uncertain, cohousing is a trend that, while new today, is likely to catch on in a big way tomorrow.
For property investment advice specifically targeted to cohousing and cohousing trends, visit www.cohousing.org.
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Comments on Cohousing Investment Properties: The Next Boomer Wave?
Hello!
Cohousing communities are, indeed, a “good” risk for the investor or developer because the future residents are involved from the beginning including investing their own money. They are stakeholders w/ the professionals. And because they have funds invested, they have a say in the physical design and grow the group themselves … they are far less likely to walk away from a project. They have money and themselves invested in the project’s success.
In these troubled times, I think we’ll see a lot more of this shared risk, shared responsibility and shared reward between seller and buyer. Collaboration not conflict is the new black.
Ann Z.
cohousingcollaborative.com
Ann, I agree. I really want to see this take off for other reasons as well. Cohousing could be a really good way into rehabilitating cities, improving urban quality of life, and reducing carbon emissions. I can see cohousing communities springing up around small cottage industries as the economy changes, somewhat like the guilds of the Middle Ages. In fact, as you point out, since cohousing investors are stakeholders and are ‘in’ at the planning stage, these communities can be arranged around any theme a group of like minded people desire. I think foreign investors should take the trend very seriously indeed, and I hope they do! Thank you for your comment.
What is really amazing is the cohousing fever is getting around the world I am trying to attempt a cohousing project in West Africa we are currently forming the core nucleus now with Five commited members we are looking at buying 100 acres of land develop a cohousing community of 100 families in a cluster on 20 acres use the restof the land for sustainable agriculture vegetable gardening poultry fruits for our consumption but also for sale on commercial level.Indeed i am very excited to be pioneer in this continent. i am very encouraged from what i see the developed world doing.
Me too! I think it’s a great trend. Thanks for your comment.
Readers interested in more information about cohousing – including a directory of existing and forming communities around the country – can check out the Cohousing Association of the US website at http://www.cohousing.org.