Co-Living: The High-Yield Property Trend That’s Quietly Gaining Ground

While much of the property spotlight stays fixed on traditional investment models, a quiet revolution is taking shape in Australia's rental market — and it’s one smart young investors should be watching closely.

It’s called co-living, and it’s reshaping the way we think about residential investments.

What Is Co-Living?

At its core, co-living is a modern take on share housing. Tenants have private bedrooms and sometimes bathrooms, while sharing communal spaces like kitchens and lounges. But unlike the old-school flatshare, co-living developments are purpose-built for comfort, privacy and convenience, often with utilities, internet and cleaning services bundled in.

Tenants love the flexibility and affordability. Investors love the returns.

The Per Square Metre Advantage

Here’s where it gets interesting for property investors: co-living offers some of the highest returns per square metre in the residential market.

In a traditional rental setup, one tenant or household occupies the entire dwelling. Your return is tied to a single rental income. In co-living, you generate multiple rental streams from one property. That can result in significantly higher total rent, lower vacancy risk and stronger cash flow — especially in high-demand urban areas.

Put simply, you're getting more yield from the same footprint.

Meeting the Market Where It’s At

The rise of co-living isn’t just a trend — it’s a response to real shifts in the housing market.

With property prices and the cost of living on the rise, many renters (especially young professionals, students and key workers) are looking for affordability without sacrificing location. Co-living ticks both boxes. It allows tenants to live in desirable inner-city or well-connected suburbs at a lower weekly cost, while still enjoying a well-maintained, community-focused environment.

And from an investor perspective, the demand is steady. Many co-living properties report low vacancy rates thanks to strong, consistent interest.

Should You Consider Co-Living for Your Portfolio?

If you're looking to maximise returns, diversify income streams or get into tightly held suburbs with strong rental demand, co-living is worth exploring. It’s a solid option for those seeking long-term passive income and better cash flow.

Our team can help you assess whether co-living suits your investment goals. We’ll crunch the numbers and give you the clarity to take your next step with confidence.

Want to Explore Co-Living Further?

Get in touch with your Property Mentor or contact us via enquiries@younginvestorsclub.com.au to learn more.

With strong per-square-metre returns, growing demand and a modern appeal to renters, co-living might just be the most underrated strategy in your portfolio.