(Arthur Silver, Contributing Writer)
- As young renters face record costs in America's largest cities, a maturing co-living sector is showing it can deliver affordability and strong investor returns at the same time. The emergence of Outpost Group as the country's largest co-living operator may be the proof of concept the industry has been waiting for.
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When Sergii Starostin arrived in the United States, he did not experience the American dream so much as the American housing nightmare. Finding an affordable apartment in New York City as a newcomer - without credit history, without a local network, without savings padded by years of employment - was, as he later described it, an exercise in humiliation. Brokers ignored him. Landlords turned him down. The options that remained were either unaffordably expensive or depressingly grim.
That experience became the founding premise of Outpost, which Starostin co-launched in 2016 with a straightforward mission: create furnished, shared living spaces that were not only financially accessible, but genuinely desirable; places where young people could land in a new city, build a life, and feel part of a community while doing it.
Nearly a decade later, Outpost has become the largest co-living operator in the United States. In November 2025, the company announced a merger with June Homes, a proptech-driven rental platform with roughly 2,600 units across seven major cities. Combined under the holding company Outpost Group, the new entity manages approximately 4,000 units across New York City, Boston, Washington D.C., Chicago, Los Angeles, San Francisco, and Austin - generating an estimated $65 million in annual revenue. Crucially, it is profitable, a distinction that separates it from nearly every major competitor that has tried and failed to crack this market at scale.
The Affordability Case: More Than a Marketing Claim
The term "affordable housing" carries considerable political and regulatory baggage in real estate circles. But the affordability that co-living operators like Outpost offer is not a product of government subsidy, tax incentives, or income restrictions. It is a function of architecture, amenity-sharing, and operational efficiency… and the numbers are striking.
Outpost estimates that its furnished rooms and co-living arrangements are typically 30 to 40 percent cheaper than comparable studios or one-bedrooms in the same markets. In New York City, where the median asking rent for a studio has exceeded $3,000 a month in recent years, a furnished private room in a co-living property with shared common areas, utilities included, can be secured for $1,500 to $2,200 a month - a difference that, for a 24-year-old arriving from Cincinnati or Columbus with a new job offer and $8,000 in savings, is not marginal but existential.
"Young people still want to move to big cities. They still want opportunity. What they need is a way to afford it, and that's the problem we're here to solve. Thankfully, now at a national scale." — Sergii Starostin, CEO, Outpost
The demand data supports this. Surveys conducted by Outpost indicate that more than 70 percent of young newcomers find it "hard" to secure housing within their budgets, and more than half say they would prefer a private apartment if it were not cost-prohibitive. That second statistic is telling: co-living is not the first choice of most renters aged 18 to 34. It is the rational choice in the face of a market that has priced them out of the alternatives.
The structural forces driving that dynamic show no signs of reversing. High interest rates have suppressed new construction. Zoning restrictions in many cities continue to limit multifamily density. Homeownership has been pushed further out of reach for millennials and Generation Z, extending the renter lifecycle well into what previous generations considered prime home-buying years. The result is a swelling population of young professionals who are committed, long-term urban renters and who represent a stable, growing customer base for the co-living sector.
The Investor Equation: Why Building Owners Are Paying Attention
If affordability were the only story, co-living would be an interesting social enterprise. What makes it compelling as a real estate model is the simultaneous value proposition it delivers to building owners; a proposition that, in many markets, substantially outperforms traditional apartment leasing.
The math begins with density. A traditional three-bedroom apartment in a major city might rent for $4,500 a month as a single unit. Configured as a co-living property with three private bedrooms, shared kitchen and living space, and included utilities and furnishings, the same floor plan can generate $2,000 to $2,200 per room or $6,000 to $6,600 a month total. The tenant pays less per person. The building owner collects more per square foot. Both sides benefit.
Industry data reinforces this. Research from Primior Group found that co-living properties generate 30 to 50 percent more income than traditional apartment configurations on a per-unit basis. A case study of the ALTA development in Long Island City, New York found that co-living units produced 44 percent higher income per square foot than conventional apartments in the same building, with 30 percent higher net operating income per square foot - even after accounting for the cost of housekeeping and additional services.
Outpost's model for building owners goes beyond yield. The company offers landlords two distinct structures: a standard property management arrangement and a master-lease co-living model, in which Outpost leases the building and assumes operational responsibility, including vacancy risk. For building owners who want predictable income without day-to-day management exposure, the master-lease structure functions as a performance guarantee backed by an operator with a national portfolio and the financial discipline to honor it.
That reliability has become a significant differentiator. The co-living space has been littered with well-funded casualties, namely operators that grew quickly on venture capital, burned through reserves, and left landlords stranded with broken leases and empty buildings. Outpost has, in several instances, been the entity that stepped in to restore order. Since 2019, the company has absorbed the portfolios of failed operators including Bedly, interns.nyc, and, most recently, Common, in each case stabilizing properties and restoring landlord confidence. It is a track record that speaks directly to the counterparty risk concerns that have historically made some building owners hesitant to enter co-living arrangements.
"We built Outpost to be the reliable operator in a very unpredictable industry. Where others chased growth at any cost, we focused on choosing great projects, controlling expenses and treating every building owner like a long-term partner." — Sergii Starostin
The June Homes Merger: Building for the Long Term
The merger with June Homes adds both scale and complementary capabilities to Outpost's platform. June Homes, backed by SoftBank Ventures Asia, built its reputation not on the co-living experience per se but on the rental process itself, creating a system that allowed renters to discover, apply for, and move into an apartment in as little as three hours, with no broker fees and transparent pricing. For renters arriving in a new city, it addressed a different but equally painful friction point: the sheer difficulty of navigating an opaque, time-consuming, and often exploitative rental process.
"We created June Homes to bring more transparency into the rental market and make the process easier for both renters and landlords," said Dan Mishin, June Homes' founder. "Now, we're excited to join forces with Outpost to continue that effort by creating a market leader in the flexible living category positioned for further expansion and acquisitions.”
Mauricio Zuniga, June Homes' CEO, will serve as President of the combined company, and June Homes' full operations team will remain in place. The newly merged organization employs approximately 200 people across its seven-city footprint and will extend June Homes' events and community programming across the entire Outpost portfolio.
For Starostin, the merger is a milestone in a longer-term ambition. He speaks openly about building a "Marriott for co-living;” a nationally recognized brand that makes medium- and long-term furnished rentals as simple and reliable as booking a hotel room, with consistent quality standards, a trusted experience, and the infrastructure to expand internationally. His five-year target: more than $500 million in revenue and a continued consolidation of a sector that still has significant fragmentation.
A Sector Coming of Age
The broader co-living market has matured considerably from its early days, when the concept was often dismissed as glorified dormitory living for adults who hadn't yet earned their independence. Today, the global co-living market is valued at roughly $16 billion and is projected to reach $30 billion by 2030, growing at a compound annual rate exceeding 11 percent. In the United States, the sector has been shaped by a period of painful consolidation. The failure of high-profile operators has weeded out the undisciplined and elevated the companies with genuine operational depth.
That winnowing is, in many respects, good news for real estate investors evaluating co-living as an asset class. The companies that survived the shakeout, Outpost chief among them, did so by building real businesses rather than growth narratives. They have occupancy data, operating cost structures, and landlord relationships that can be underwritten. They have demonstrated the ability to manage through economic cycles. And they are operating in a demand environment that is, by almost every structural indicator, exceptionally favorable.
The United States faces an estimated housing shortfall of more than four million units. New household formation continues to outpace new construction. The cohort of renters aged 22 to 35 is the largest in American history, and a substantial portion of them are moving to cities where a traditional apartment is simply not an accessible entry point.
The Bottom Line
The most interesting thing about flexible shared living in 2026 is not that it has survived - it is that the dual value proposition at its core has proven durable. Young renters gain a foothold in expensive cities at costs that would otherwise be prohibitive. Building owners unlock superior revenue per square foot with a reliable operational partner assuming the complexity. And the best operators, having endured a brutal period of industry consolidation, have emerged leaner, more credible, and better positioned than ever.
For real estate investors, developers, and building owners still on the fence about co-living, the Outpost-June Homes merger provides a useful reference point. This is what the sector looks like when the model works: profitable at scale, disciplined in operations, and solving a problem. The inability of an entire generation to afford to live in the cities that drive the American economy shows no sign of going away.
For more information, visit www.outpost.me.
