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August 20, 2026

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A rung on the housing ladder: Co-living fills gap for young adults, but home ownership remains end goal

A co-living pilot was among the initiatives announced under the SG Youth Plan launched last month, presenting it as an option for young people in Singapore.

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SINGAPORE: Co-living is emerging as a new housing option for young adults seeking independence before marriage or owning their first home, but it is unlikely to shift Singapore’s longstanding policy and emphasis on home ownership for now, said observers.

It reflects how young Singaporeans’ housing goals are changing as they marry later and seek greater flexibility in the transition to adulthood while affordability remains a major consideration, they added.

This follows the announcement of a co-living pilot under the SG Youth Plan last month, with two operators setting aside over 100 units for Singaporean youths aged 21 to 35 at discounted rates.

As of Aug 12, more than 600 people have expressed interest in the initiative, said a Ministry of Culture, Community and Youth spokesperson.

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The majority are single youths, with the most commonly cited reason being the desire for more personal space and the opportunity to experience living independently.

While it may be an additional rung on the housing ladder – between living with parents and buying a home – observers cautioned against seeing the pilot as a fundamental shift in Singapore’s national housing policy.

At the launch of Mber co-living and serviced apartments earlier this month, National Development Minister Chee Hong Tat said that household structures and housing aspirations have evolved as society becomes more diverse.

“While homeownership remains a key tenet of Singapore’s social compact, we recognise that there is also demand for flexible accommodation options, such as by younger Singaporeans who are looking to rent initially before buying their own homes,” he said.

“Now, let me be clear, we still want to encourage home ownership. That is still a very key part of our social compact.”

1925 Quarters, a co-living space located on Hindoo Road, on Aug 6, 2026. (Photo: CNA/Alyssa Tan)

FILLING THE MISSING MIDDLE

While home ownership remains the final end goal, co-living could fill a gap on the traditional housing journey of Singaporean youths, said observers.

“For a long time, the typical housing journey in Singapore has been quite straightforward: you live with your parents, get married, buy an HDB flat and eventually perhaps upgrade,” said National University of Singapore economics and real estate professor Sumit Agarwal.

While that model has worked well, Prof Agarwal noted that young people’s lives are becoming more varied.

“They are marrying later, changing jobs more often, spending time overseas, and some simply want to experience living independently before getting married,” he said.

Including co-living in the SG Youth Plan is an acknowledgement that there can be another stage in the housing journey, he added.

“I would probably call it an additional rung on the housing ladder rather than an alternative to home ownership,” he said.

Dr Tan Ern Ser, an adjunct principal research fellow at the Institute of Policy Studies (IPS), said that co-living could be a “third pathway” on the housing journey, but only as an interim arrangement until individuals become eligible for public housing.

“I see co-living as expanding the housing options of young adults until a time they marry or hit 35,” he said.

“After all, for instance, some students do enjoy dorm living. And this option may allow them to relive dorm living, which is not expected to be a long-term housing option. My sense is that some young adults may actually enjoy having a longer adolescence.”

Dr Tan said that beyond addressing the desire of youths to live independently, it also promotes a sense of community.

“Co-living may also facilitate social interaction, making friends, which could address the issue of some young people not having friends or perhaps even find a potential marriage partner,” he said.

Co-living facility operators said that tenants are drawn to their model due to the amenities, sense of community and also the duration of stay.

Mr Kelvin Lim, executive chairman and chief executive officer of Coliwoo, told CNA that his clients range mostly from 21 to 35, with tenants as young as 18 who are foreign students.

They typically stay for between six and nine months, and Coliwoo does not offer contracts of more than a year at a single stretch, he said.

“You don’t need to sign a very long lease, as opposed to a traditional rental, where you need to sign a one or two-year lease,” said Mr Lim, adding that the stay can be as short as one month.

Under rental rules, tenancies for HDB flats must be at least six months, and a minimum of three months for private residential properties.

Eco Energy general manager David Tan, whose firm runs the 1925 Quarters in Hindoo Road, said his facility draws mostly people in their 30s.

Among them are Singaporeans who are transiting between overseas job postings, renovating their houses or waiting for a new apartment, he said. About 10 per cent of the local clientele stay there due to the close proximity to their workplaces in the central business district, added Mr Tan.

Both operators shared that co-living also differs from traditional rental due to the amenities. Co-living units are fully furnished and serviced, with all rooms fitted with daily necessities, noted Mr Lim.

“You don’t need to spend a single cent to dress up the room. If you were to rent a studio unit from an owner, you probably need to buy certain things like pots and pans, cutlery, put up your curtains, bring in your pillow, bolster and bedsheets,” he said, adding that rooms are cleaned once a week.

There are also fewer restrictions in co-living spaces, said both operators.

Renting in HDB flats, for instance, may come with restrictions on the use of washing machines and the kitchen, along with the freedom to invite guests, said Mr Tan.

In contrast, the community element is designed into co-living spaces, with communal areas such as kitchens letting tenants mingle outside of private spaces.

Mr Lim shared that Coliwoo organises social events for its tenants, such as wine tasting, cooking classes and festival celebrations, while Mr Tan’s 1925 Quarters gives out fruits or snacks to its tenants every two weeks.

Mr Christopher Gee, IPS deputy director for research and senior research fellow, said that the early demand for the co-living pilot under the SG Youth Plan is not surprising.

“You’d have to say that there is a group of the target population that is interested in this way of living, and it’s more about whether this develops into a norm, instead of the usual trajectory, which is BTO (Build-to-Order) after having acquired all of the markers of adulthood development of your life as a Singaporean,” he said.

AFFORDABILITY

Co-living spaces may be more expensive compared with HDB rentals, but operators told CNA the price points are justified based on their offerings and also cater to the purchasing power of their target clientele.

Under the pilot, monthly prices start from S$1,800 for a twin or queen room at 1925 Quarters, and from S$1,950 for a similarly sized room at Coliwoo Boon Lay, and S$2,000 at Coliwoo Lutheran.

The rates for co-living spaces are typically priced “sensitively” based on the rates of other surrounding offerings, and are pegged to the private rental market instead of the HDB rental market, explained Mr Lim.

“We know we are going to be more than HDBs, because HDBs have so many restrictions. For that reason, it’s always a bit cheaper,” said Mr Tan, adding that co-living spaces are also not of the quality of hotels or full private residences, so “we’re trying to peg somewhere in between”.

“Just looking at the numbers, yes we agree that it may be expensive, compared to probably what they are being paid in their fields of work,” he added.

However, he feels it is “probably affordable” for a person in their early 30s in a professional field of work to spend “probably about a quarter or a third of their salary” on renting a co-living space.

“Of course, if they are just starting off as a fresh grad at say 25, it may be challenging because it probably takes maybe more than half of their salary, along with other living expenses like food and all that,” he said.

Mr Lim said co-living could also be an option for couples waiting for their BTO flats to be completed, due to their combined incomes.

But even as co-living broadens the range of housing options, observers said there is ultimately the question of affordability for many young adults.

Prof Agarwal said: “Living with your parents is almost certainly going to be the cheapest option. Renting an entire private apartment yourself is at the other end. Co-living should sit somewhere in between.”

However, “cheaper than renting an apartment” does not necessarily make it affordable, he noted.

For instance, someone earning S$8,000 or S$10,000 monthly may find spending S$1,500 or S$2,000 for independence quite reasonable. In contrast, that forms an enormous share of disposable income for someone earning S$3,000 or S$4,000, said Prof Agarwal.

“I would watch the distributional issue carefully. If all we do is create attractive co-living spaces in central locations at market rents, we may end up creating a very nice new housing option — but mainly for relatively affluent young professionals,” he said.

Dr Tan said that not every young adult would want “an expenditure item that would make a dent on their disposable income”.

Living with their parents in a small household and with a cordial familial relationship would be a better option comparatively, he said.

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NO SHIFT IN HOUSING POLICY

Ultimately, observers and operators said the push for co-living – along with the official recognition of it in the SG Youth Plan – does not necessarily indicate a fundamental change in Singapore’s housing policy, and its longstanding emphasis on home ownership.

Mr Gee noted that the initiative is essentially a pilot programme to test the market’s response for now, and the scale is “quite modest”.

The programme is a private initiative that is not subsidised by the government, with discounts offered by the operators, while the government’s support comes in the form of publicising and marketing, he said.

For it to be a realistic national plan, it would require government funding support, he added.

“But to say that the government is endorsing co-living and therefore something that has direct immediate implications on home ownership and home ownership policies in Singapore, particularly public housing, I think that’s overstating it,” said Mr Gee.

“Home ownership is still a laudable goal.”

Prof Agarwal said the bigger significance of the co-living pilot is the signal that it sends, rather than just the number of co-living units created.

“Overall, I don’t see co-living as a threat to Singapore’s home-ownership model. I see it as filling a gap,” he said.

His research has strongly shown that affordable home ownership has produced important long-term benefits, including for intergenerational mobility. Prof Agarwal said that this is something that should be preserved.

“But precisely because buying a home is such a major financial and life decision, there is no reason why young Singaporeans shouldn’t have more flexibility in the years before they are ready to make that commitment,” he said.

If co-living does grow in popularity here, it may create a viable lifestyle for people without stable employment, such as freelancers and digital nomads, Mr Gee said.

“If this takes off and an increasing number of people are in this kind of mode, and more of the population is on this trajectory as a norm, this will have implications on HDB, CPF and all of these institutions of life in Singapore,” he added.

Source: CNA/fb(mi)

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