Conflict sits between the urge to tear down and the chance to rebuild in a new way. On one side, empty office towers and old motels wait for the wrecking ball. On the other, there’s a plan to turn their empty shells into warm, people-focused homes without starting from zero. That quiet tension is where real value appears.
Across Australia, many buildings, old student flats, out-of-date offices and motels/ hotels stand mostly unused or struggle in today’s market. The usual answer is to knock them down and build new ones. But that costs a lot of carbon, takes years and often costs more money. Inside these old buildings, though, is another option: reuse their structure to make homes that fit what people want now.
Coliving isn’t new. Shared houses and co-housing have been around for years. What’s fresh is using these old buildings for coliving. You keep private bedrooms but share kitchens, bathrooms and lounges. That setup gives you:
- More bedrooms per square metre. No need for duplicate kitchens or long hallways.
- Fewer fixtures. One good communal kitchen replaces many tiny ones.
- Lower build costs. Minimal structural work keeps expenses down.
- Higher rent roll. More rooms mean more rent income.
People who can’t afford a whole apartment still want more than just a roof. They want stability, community and convenience, things missing from basic room-for-rent ads. Coliving fills that gap.
Data from AHURI shows rising interest in shared, flexible housing in our cities. Their surveys find young workers and international students appreciate having privacy plus social space. International studies (Pew, Gensler) say turning existing buildings into coliving can cut build costs by 25–35% compared to new apartments, and triple the number of rooms per floor.
This isn’t about cramming people in small boxes. It’s about thoughtful design and using what’s already there. Picture a mid-rise office floor with wide corridors and meeting rooms. With a smart layout, you could have:
- Clusters of eight bedrooms around a shared living area.
- Private suites with en-suite bathrooms and one big kitchen at the centre.
- Small co-working spots that turn into social lounges in the evening.
A coliving retrofit can fit about three times as many rent-earning rooms per floor as a standard apartment layout. Even if each room rents for less, say $450 instead of $650 a week, the total rent income goes up. More rooms also spread out vacancy risk: one empty bedroom hurts less than one empty apartment.
For investors, coliving conversions mean steadier cash flow and higher yields. Shared-living tenants tend to stay longer, cutting churn. Developers can benefit from faster planning approvals when they adapt existing buildings instead of building new ones. And cities get more homes in good areas, with a much smaller carbon footprint than new builds.
Of course, shared living has its challenges. It needs smart design to balance private and communal spaces. Planning rules and tenancy laws must catch up and recognise coliving as its own category. Operators need good community management to keep residents happy. Still, these challenges are small compared to the carbon and cost savings of reuse over rebuild.
A Simple Motel Makeover
Imagine a 1960s motor inn, once packed with road-trippers, now half empty. A developer sees 2,500 m² of space in two wings. Instead of knocking it down and building 30 new studios, they turn each old motel room into a private bedroom and group eight rooms around a shared kitchen and lounge. They use the old lobby for communal space. The result:
- 72 bedrooms instead of 30 studios
- 18 shared kitchens replacing 72 tiny kitchenettes
- 20% lower build cost thanks to minimal structural changes
- 3× more lettable units per square metre
At $450 a week per bedroom, total weekly rent is $32,400 versus $19,500 from 30 studios at $650 each. Operating costs drop, vacancy risk halves, and community events (movie nights, workshops) keep retention above 80%. The old motel’s structure proves more valuable than a new build.
How This Works in Other Buildings
- Outdated Aged Care Facilities
Large rooms and wide corridors can be redivided into private bedrooms clustered around shared living and dining areas. Former activity rooms become communal kitchens or lounges, keeping build costs low while giving residents privacy plus community. - Outdated and Empty Office Buildings
Open-plan floors turn into floors of bedrooms around central hubs. Breakout rooms become co-working nooks or small lounges, and existing bathrooms and kitchenettes can be upgraded into shared amenity spaces, making use of the building’s plumbing and lifts without major structural work. - Outdated Motels & Hotels
Individual guest rooms convert directly into private bedrooms. Reception areas, laundry rooms or conference spaces become shared kitchens, lounges or co-working spots. Parking lots or unused outdoor areas can be landscaped into gardens or picnic spaces for residents, all while keeping the motel’s basic frame intact.
Each project needs local research, room sizes, rent levels, amenity needs but the core idea is the same: boost density, cut duplication and use existing services (pipes, stairs, waste chutes).
Keys to Good Coliving Design
- Privacy first: Rooms with solid doors and good soundproofing.
- Shared hubs: Kitchens and lounges big enough for the whole group.
- Basic amenities: Small gym, laundry and co-working nooks.
- Natural touches: Indoor plants, good daylight and outdoor areas.
- Tech support: Online booking for shared spaces, digital community boards, concierge apps.
Good design keeps places from feeling like “cookie-cutter” co-living and creates a unique, welcoming home.
Making It Easier
Policy-makers can help by:
- Defining coliving in planning codes, setting clear room and amenity sizes.
- Offering incentives (tax breaks, fast-track approvals) for reuse projects.
- Updating tenancy laws to protect both investors and shared-living residents.
These steps lower risks and show support for sustainable housing.
Wrap-Up
Our cities have many underused buildings waiting for new life. Knocking them down wastes carbon and time. Coliving retrofits reuse beams, pipes and corridors to create more homes, faster and cheaper. They boost returns for investors, deliver more housing for cities and give renters an affordable, community-focused option. Sometimes the best answer isn’t to erase, it’s to rethink.
