Could dormitory-style housing revitalize downtown Minneapolis? New study explores potential for coliving projects

Could dormitory-style housing help revitalize downtown Minneapolis? A new study conducted by the Pew Charitable Trusts and Gensler explores the feasibility of converting unused office floors into coliving spaces, with small single-occupant units and communal kitchens and bathrooms.

These proposed coliving units would be incredibly small, measuring just 150 square feet each. Residents would have a bed, desk, nightstand, minifridge, and microwave, similar to a college dorm room, with shared kitchen and bathroom facilities on each floor.

The study evaluated the potential for converting commercial properties into coliving projects in Minneapolis, Denver, and Seattle, aiming to address both the surplus of empty office buildings and the growing affordable housing crisis. The conversion could provide lower-cost housing options, potentially reducing rents to 20-50% of the local area median income for single-person households.

In Minneapolis, the estimated rent for a single unit could range from $500 to $1,000, offering a more affordable housing option for residents. The total cost for such a conversion in Minneapolis would be over $180 million, excluding any additional government subsidies.

Coliving projects present a unique operating model that could appeal to both investors and nonprofit operators. The communal living spaces could attract a diverse range of tenants, including lower-income residents, institutions, and supportive housing programs.

The concept of coliving spaces isn’t entirely new, as single-room occupancy units were once common across the U.S. However, restrictive zoning and building codes led to the decline of these affordable housing options. The study notes that Minneapolis has relatively low regulatory barriers for coliving projects and recent updates to city ordinances aim to facilitate the conversion of office buildings.

Overall, coliving projects could offer a creative solution to the affordable housing crisis and contribute to the revitalization of downtown Minneapolis. By repurposing unused office space into small, communal living units, this innovative approach could provide much-needed affordable housing options for residents and potentially decrease homelessness in the city.