New ‘co-living’ housing option spreads its wings in New York

Gil Hirak, head of US operations and community of Quarters, speaks with a colleague on the rooftop of Quarters Co-Living in New York City. (AFP)
Updated 12 August 2019

New ‘co-living’ housing option spreads its wings in New York

  • Companies reduce many traditional sources of friction between roommates

NEW YORK: Nandita Iyer landed in New York from Bombay without knowing anyone, but she did not want to live alone in a “sketchy studio.” So instead she opted for a room in a “co-living” unit.
She lives with roommates in one of the 14 apartments in a small building run by the housing startup Quarters in the trendy Lower East Side neighborhood.
The best part of the arrangement, she said, are the common areas: A large kitchen with a big table and comfy couches, a terrace where she can work and a luxurious rooftop patio.
“I met people from such different backgrounds. And I became very good friends with them,” she said.
And she even found mentors to help with her job search.
Group living arrangements are not new: Many people have lived with roommates, in student dormitories or retirement homes.
But with housing costs skyrocketing in major cities and amid changing lifestyles, start-up companies are offering to take care of everything for renters, including the social life of their residents.
Demand for these new group housing arrangements is on the rise, especially among young people aged 18 to 35 — the millennials — so more and more projects are appearing on the rental landscape.
Real estate brokers Cushman & Wakefield estimated in May that the major US co-living startups had about 3,200 rooms available with 16,700 in the pipeline. The new players include Quarters, Common, Ollie, Starcity, X Social Communities, The Collective and WeLive.
Quarters manages three residences in New York and Chicago and is preparing to grow quickly. Its German-based parent company, Medici Living, just raised $300 million to expand in the US market, in addition to €1 billion to develop in Europe.

HIGHLIGHTS

• Amenities are more sophisticated than at Quarters: Residents have access to a gym, golf simulator and top floor with open views of Manhattan, Brooklyn and Queens.

• Like many coliving providers, Ollie’s boasts that it organizes social events several times a week, like museum visits or cooking classes.

• It also allows residents to communicate with each other on a dedicated application.

“We provide an easy solution for people looking to move into big cities,” said Gil Hirak, head of US operations for Quarters.
From the virtual tour to the signing of the lease, everything can be done online. Then “you just move in with a suitcase,” since units are furnished.
The companies also reduce many traditional sources of friction between roommates by taking care of all the practical details: Basic products such as toilet paper, cleaning, internet or electricity bills.
“During the week, we’re so busy. Housekeeping is really helpful,” said resident Eric Tauro, a 29-year-old architect.
After finishing his studies he was “researching what would be the easiest way” to move to New York.
He set his sights on Ollie’s third project in a large new building in fast-growing Long Island City. The startup occupies a third of floors in the complex, with 422 beds available in 169 apartments.
Amenities are more sophisticated than at Quarters: Residents have access to a gym, golf simulator and top floor with open views of Manhattan, Brooklyn and Queens.
Like many coliving providers in the city, Ollie’s boasts that it organizes social events several times a week, like museum visits or cooking classes.
It also allows residents to communicate with each other on a dedicated application.


Middle East chief executives share global gloom on economic prospects

Updated 21 January 2020

Middle East chief executives share global gloom on economic prospects

  • Only China and India among the major economic blocs were less pessimistic on average
  • Trade wars, geopolitical tensions and climate change threats were the factors weighing most heavily on executive minds

DAVOS: Global business chiefs are more pessimistic about prospects for the world economy than for many years, and senior executives in the Middle East are among the most gloomy, according to the annual survey of chief executive officers’ opinion released at the World Economic Forum annual meeting in Davos.

The poll — by consulting firm PwC — showed that a record number of CEOs were pessimistic about the international economy, with an average of 53 percent predicting a decline in the rate of growth in 2020.

While bosses in North America and Europe were particularly downbeat about prospects, with 63 percent and 59 percent saying they thought things would get worse this year, CEOs in the Middle East were also more gloomy than average, with 57 percent predicting lower growth this year.

Only China and India among the major economic blocs were less pessimistic on average, but there was a sharp decline in the number of Chinese executives who wanted to do business with the US — just 11 percent identified the US as their most attractive market, compared with 59 percent two years ago.

Trade wars, geopolitical tensions and climate change threats were the factors weighing most heavily on executive minds — apart from the standard complaints about over-regulation by governments.

Unveiling the 2020 results, PwC chairman Bob Moritz said: “Given the lingering uncertainty over trade tensions, geopolitical issues and the lack of agreement on how to deal with climate change, the drop in confidence in economic growth is not surprising – even if the scale of the change in mood is.”

Last year, there was a record number of CEOs who said they were optimistic about global economic growth, and only 29 percent said they were pessimistic.

“These challenges facing the global economy are not new. However, the scale of them and the speed at which some of them are escalating is new, the key issue for leaders gathering in Davos is: How are we going to come together to tackle them,” Moritz added.

The poll of 1,600 CEOs in 83 countries was taken toward the end of last year, before tensions in the Middle East escalated in the Arabian Gulf, but before the tentative “phase one” agreements on world trade between the US and China.

The poll was also taken before the Australian wildfires further highlighted fears of climate change — a major focus of the WEF meeting.

The poll also found CEOs less confident than ever in their own companies’ prospects, with only 27 percent of CEOs saying they are “very confident” in their own organization’s growth over the next 12 months – the lowest level PwC has recorded since 2009 and down from 35 percent last year.