Key takeaways
- Coliving is gaining momentum as an investment strategy in response to rising housing costs, urban population growth, and the increasing demand for flexible lifestyles.
- Top U.S. cities for coliving in 2025 include Austin, St. Petersburg, Denver, Phoenix, Atlanta, and Dallas—each benefiting from favorable zoning reforms, economic expansion, and growing renter demand.
- PadSplit is now available nationwide, helping property owners launch and manage profitable coliving rentals in high-demand markets across the U.S.
- Investors should consider local regulations, market demand, and operational needs before entering the coliving market, and platforms like PadSplit can streamline the process.
- Coliving addresses the affordable housing crisis by offering all-inclusive pricing, credit-building opportunities, and flexible lease terms to renters in need of stability.
As housing costs climb and flexible living becomes more essential than ever, coliving is emerging as a powerful investment strategy. Whether you’re a real estate investor or a mission-driven host, knowing where to focus your efforts can make a big difference.
Several U.S. cities are leading the charge, driven by zoning reforms, affordability challenges, and demographic shifts. Here’s a closer look at the most promising coliving markets in 2025, along with a global snapshot of rising stars abroad.
Why these cities matter for coliving
The following cities have become fertile ground for coliving, thanks to a mix of:
- Progressive zoning laws supporting higher-density living
- Rapid population and job growth, especially among young professionals
- Affordable housing shortages are making flexible models more attractive
- Investor-friendly regulations around multifamily housing
Thinking about turning your property into a coliving property investment?
PadSplit helps property owners unlock more rental income while solving the affordable housing crisis, one room at a time.
Learn how to become a PadSplit host.
U.S. cities primed for coliving investment
Austin, Texas
Key drivers: Zoning reform, tech growth, rising home prices
Austin’s HOME amendments have transformed the city’s development landscape. Now, up to three units can be built on a single-family lot, and restrictions on unrelated adults sharing a home have been removed.
Combine that with booming tech jobs and a housing affordability crunch, and you’ve got a city ripe for coliving. Expect continued demand from young professionals looking for community and cost savings.
Bonus insight: PadSplit members in Austin can take advantage of flexible terms and all-inclusive pricing, making it a natural fit for this high-growth city.
St. Petersburg, Florida
Key drivers: State-level reforms, affordability, cultural appeal
Florida’s Senate Bill 328 is a game-changer. It streamlines approvals for multifamily and mixed-use developments, reduces parking minimums, and loosens height and density rules.
In St. Petersburg, these changes make coliving more feasible than ever. With comparative affordability to nearby Tampa and a vibrant cultural scene, the city is attracting younger renters who want location and lifestyle without the sky-high price tag.
Denver, Colorado
Key drivers: Zoning reform, job growth, ADU flexibility
Denver now allows more unrelated adults to cohabitate and supports accessory dwelling units (ADUs), creating a friendlier landscape for coliving.
With a projected increase in housing units over the next three years and a thriving tech economy, the city is a magnet for millennial and Gen Z renters who are priced out of traditional housing.
Phoenix, Arizona
Key drivers: Population boom, affordable real estate, urban sprawl
Phoenix is one of the fastest-growing metro areas in the country. Its relatively affordable housing market and proximity to universities make it ideal for student-friendly and professional-oriented coliving setups.
Atlanta, Georgia
Key drivers: Housing shortage, early coliving adoption, economic diversity
Atlanta is no stranger to coliving—it’s been an early adopter of the model. The city’s ongoing housing shortage and strong job market across tech, logistics, and entertainment make it a prime market for continued growth.
As PadSplit’s home base, we’ve seen firsthand how impactful flexible room rentals can be in addressing affordability in Atlanta.
Dallas, Texas
Key drivers: Organic coliving demand, economic resilience
Dallas is seeing a natural shift toward shared housing. With steady population growth and rising housing costs, coliving offers a practical solution for residents and a compelling opportunity for investors.
Considering coliving but not sure where to start?
PadSplit supports hosts nationwide with:
- Flexible onboarding tools
- Member screening and rent collection
- Full compliance and operations support
What makes a city ripe for coliving?
If you’re evaluating markets, focus on these signals:
- Zoning flexibility: Cities easing rules for shared housing or ADUs (e.g., Austin, Denver)
- Strong population growth: Especially among renters and young professionals (e.g., Phoenix, Dallas)
- Affordable housing gaps: Markets where traditional rentals are no longer viable for many (e.g., Atlanta)
- Regulatory support: States or cities offering pathways for multifamily development (e.g., Florida’s SB 328)
PadSplit is now nationwide
As of 2025, PadSplit is available in cities across the U.S., empowering hosts and members from coast to coast. Whether you’re in a high-growth metro or an emerging secondary market, PadSplit provides the tools and support to launch and manage successful coliving properties.
Highlighted markets seeing strong growth:
- Austin, TX – Benefiting from zoning reform and surging housing demand
- St. Petersburg, FL – Supported by new state legislation promoting density
- Denver, CO – Ideal for shared housing thanks to ADU and occupancy reforms
- Phoenix, AZ – Rapid in-migration and affordability challenges make coliving essential
- Atlanta, GA – PadSplit’s home base and a long-standing leader in coliving adoption
- Dallas, TX – Strong population growth and investor interest fuel expansion
No matter where you’re located, PadSplit is ready to help you unlock the potential of your property while addressing critical housing needs in your community.
What investors should consider before entering these markets
While cities like Austin, Denver, and Atlanta present exciting opportunities for coliving, success depends on more than just picking the right location. Here are the key factors to evaluate before launching a coliving property:
- Understand local zoning and housing laws
Each city has its own zoning ordinances, density allowances, and rules around unrelated adults living together. Before you invest, be sure to research local codes or partner with a platform like PadSplit that has deep market experience. - Evaluate demand through rental trends and vacancy rates
Look for indicators of sustained demand, such as low vacancy rates, high rent growth, and a steady influx of young professionals or students. This ensures your coliving property remains fully occupied and profitable. - Analyze upfront costs and potential ROI
Factor in renovation needs, furnishing, permitting, and utility management. While coliving offers higher yield potential per square foot, it’s essential to model your financials realistically. - Ensure you’re set up for effective property management
Coliving means multiple tenants, shared spaces, and fast turnover. Partnering with platforms like PadSplit streamlines operations, from tenant screening and rent collection to conflict resolution and maintenance coordination. - Prioritize resident experience and community
Long-term success in coliving hinges on creating a secure, respectful, and community-oriented environment. PadSplit supports hosts in setting clear house rules and fostering a culture that balances privacy with shared responsibility.
PadSplit’s model is designed to help investors maximize revenue while delivering mission-aligned impact, helping residents access affordable, flexible housing in high-demand cities.
Ready to explore how coliving could work for your property? Use this room rental calculator.
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Coliving as a path to housing equity and dignified living
Coliving isn’t just a smart investment—it’s a solution to one of the most urgent social challenges in the U.S.: access to secure, affordable housing.
In cities where rent prices have far outpaced income growth, many residents are forced into unstable, overcrowded, or substandard living conditions. Coliving models like PadSplit provide an alternative—furnished private rooms with utilities included, no minimum credit scores, and no large deposits required.
This structure supports housing-insecure individuals by offering stability, privacy, and dignity—all within a community-oriented environment.
“We’ve hosted over 200 people who would otherwise be homeless – that’s like a mission for us.” — Claudia, PadSplit Host in California
For many, PadSplit is more than a place to live—it’s a launchpad toward a better future. Members can build credit, save money, and live in secure neighborhoods while pursuing work or education.
Whether you’re a property owner looking to maximize your space or a mission-driven investor, coliving is a chance to generate returns while creating real-world impact, especially in communities that need it most.
Why coliving matters for renters
Coliving isn’t just a win for property owners—it’s a lifeline for renters navigating unaffordable housing markets. PadSplit’s model is designed to serve people who need flexibility, affordability, and a path to stability.
Key benefits for members include:
- All-inclusive weekly pricing: Rent, utilities, Wi-Fi, and furnishings—all bundled into one predictable payment.
- No long-term leases: Members can move in and out as needed, ideal for those in transition or on variable income.
- No minimum credit score or large deposits required: Making housing accessible for individuals typically shut out of traditional rentals.
- Private, furnished rooms with community: A secure and clean living space that supports independence while offering shared community amenities.
“PadSplit has given me the chance to slow down and catch up. I’ve always felt like I was trying to keep up with everyone else, but now I’m saving money, building my credit, and thinking about my future.” -Briana, PadSplit member
Final thoughts
As the housing landscape shifts, coliving presents a smart solution that meets both market demand and mission-driven goals. For real estate investors and property owners, cities like Austin, St. Petersburg, and Denver aren’t just rising stars—they’re the future of sustainable, community-centered housing.
At PadSplit, we’re proud to help bring affordable, dignified housing to life in these emerging markets.
Want to learn how PadSplit can help you invest in coliving opportunities? Get in touch with us today.
