Some of you might recall that the co-living industry in Miami was a hot topic some months back. Several co-living developments such as X Miami or Roam were through the roof at the beginning of the year, and more new developments were under discussion.
Wynwood was becoming the preferred neighborhood for the co-living market, as it offered a central location for those young professionals who are the target of these projects, not to mention a lively nightlife and great dining venues. It offered the perfect solution for the overpriced Miami rental market.
Projects such as the 8-story building featuring 200 furnished units at 33-51 NW 28th St developed by Related Group and some other similar projects are now for debate, as after the pandemic hit the city, the desire for shared spaces has lessened up.
Co-living executives are now thinking it twice as the short-term future for the industry doesn’t seem to be as profitable as it was back in January or February. In the next 12 to 24 months have negative projections that are holding back some of these developments.
With the non-stop COVID-19 cases increase in Florida, renters are being more cautious, and sharing spaces such as communal kitchens with strangers is out of the question nowadays.
Another drawback the co-living projects are facing is the fact that they are mainly focused on young professionals in major cities. However, with the COVID-19 situation, people don’t find themselves so attire to live in crowded cities anymore. There is a local migration that has almost doubled compared to last year.
Some other co-living executives assure that demand is keeping itself steady, as the need for affordable housing in Miami is still rising. They keep positive saying it is a resilient market that will recover and adapt as soon as we have a more stable situation.