Co living Melbourne Victoria
Investment Opportunities
Co Living Melbourne – Intelligent, Cost-Effective and Community-Focused Investments
Co Living Melbourne – A Strong Investment Choice
If you’re wondering what kind of co living Melbourne has to offer, INVIDA is ready to assist. Believe it or not but coliving is reshaping how people live and invest across Victoria, offering a fresh approach to housing that’s meeting today’s changing needs.
With rental demand on the rise, a shortage of affordable options and growing interest in flexible, community-focused living, co-living properties in Melbourne are proving to be a profitable and future-ready investment.
At INVIDA, we specialise not only in the property management of co living Melbourne spaces, but also in delivering strong occupancy rates, stress-free tenant experiences and optimised rental returns.
Whether you’re an investor chasing high-yield opportunities or a property owner considering turning your home into a co-living space, we’re here to support your journey.
What is Co-Living and Why is it Becoming Popular in Melbourne?
Co-living is a modern approach to housing that offers private living spaces alongside shared amenities. These create a more affordable, flexible and connected lifestyle.
Unlike traditional rentals where tenants lease an entire home or apartment, co-living allows individuals to rent private rooms or studios in a shared environment. These often come with utilities, internet and cleaning services included.
This innovative co living housing Melbourne has to offer is rapidly gaining traction across the city and the rest of Victoria, This is particularly prevalent in its growing urban hubs and expanding outer suburbs.
Co-living is responding to the city’s increasing demand for affordable, flexible living options. This makes it an ideal choice for young professionals, students and essential workers. It’s also ideal for digital nomads who are looking for a balance of affordability, convenience and a strong sense of community.
Co-Living in Melbourne: Why It’s a Growing Trend
Melbourne is grappling with a significant housing affordability crisis. As of late 2024, the median weekly rent in metropolitan Melbourne rose to $570, marking a $20 increase over the quarter . Vacancy rates have plummeted to historic lows, with Melbourne’s rate at just 0.8%. This is well below the 2-2.5% threshold typically considered a balanced market.
These challenges have prompted a shift towards alternative housing models like co-living. Melbourne coliving offers a more cost-effective and flexible solution for renters. It provides private living spaces alongside shared amenities, reducing individual expenses. For investors, co-living properties present high-yield opportunities in a market characterised by tight rental supply and increasing demand.​
Several factors fueling the surge in coliving Melbourne is experiencing include:
A Rental Market Under Pressure
Melbourne’s population is forecast to hit 6.4 million by 2033–34, yet affordable rental options remain in short supply. Co-living setups help address this gap by allowing multiple tenants to share homes without compromising comfort.
Evolving Housing Preferences
Many millennials and Gen Z residents are choosing flexibility and community-focused lifestyles over traditional property ownership. Co-living spaces — often fully furnished and move-in ready — are the ideal solution for this new mindset.
Meeting Urban Expansion Needs
With rapid growth in suburbs like Fraser Rise, Plumpton and Rockbank-Mount Cottrell, the city’s urban sprawl is pushing demand for smarter, scalable living solutions. Co-living fills the need for affordable housing as the city expands outward.
Tackling Rising Living Expenses
Living costs across Melbourne continue to climb, making it harder for individuals to rent entire apartments. Co-living helps by splitting the cost of utilities, internet and amenities, offering a far more affordable option.
Supporting Key Worker and Student Housing
Healthcare workers, hospitality staff, tech employees and university students all require well-located, affordable housing options. Co-living homes close to hospitals, business centres and educational hubs cater perfectly to these essential groups.
How Co-Living is Helping
to Tackle Housing
Challenges in
Melbourne
and Across Australia
Australia’s most pressing housing challenges
Easing Pressure on the Rental Market
By transforming existing homes and underutilised spaces into high-quality, well-managed co-living environments, this model boosts the availability of affordable housing – all without the need for large-scale new developments.
Offering Relief from Housing Insecurity
Co-living Melbourne homes provide an affordable option for renters who are finding it harder to secure long-term leases or keep up with rising rental prices in today’s competitive market.
Promoting Smarter Urban Growth
Co-living investments encourage more efficient land use, helping to curb urban sprawl and supporting sustainable, higher-density living in areas well-connected to transport, jobs and lifestyle amenities.
Delivering Strong Investment Returns
For investors, co-living properties offer the potential for higher rental yields, lower vacancy risks and multiple income streams – creating an opportunity that’s both profitable and socially impactful.
As rental pressures mount and affordability continues to slip further out of reach, co-living is well positioned to become a vital part of Australia’s future housing landscape — not only in Melbourne, but right across the country.
As an investor seeking a high-demand property opportunity in Melbourne, co-living offers an innovative solution that meets the needs of the modern rental market.
Why Invest in Co-Living Properties in Melbourne?
Melbourne is emerging as a prime location for co-living investments, driven by a combination of housing demand, attractive rental yields and supportive urban development. Here’s why co-living properties in Melbourne present a compelling investment opportunity:​
1. Strong Rental Demand Amid Tight Vacancy Rates
Melbourne’s rental market is experiencing significant pressure, with vacancy rates dropping to 1.5% as of January 2025, down from 2.2% the previous year. This tightening market indicates a high demand for rental properties, making co-living arrangements – offering affordable and flexible housing options – particularly appealing to young professionals, students and key workers.
2. Higher Rental Yields Compared to Traditional Rentals
Co-living properties often generate higher rental yields than standard residential rentals. By leasing individual rooms rather than entire units, investors can achieve gross rental yields ranging from 8% to 12%, significantly surpassing the national average of 4.98% for traditional rentals.
3. Lower Vacancy Rates with High Occupancy
Professionally managed co-living spaces in Melbourne tend to maintain high occupancy rates due to their affordability and community-oriented living. The flexibility of shorter lease terms appeals to a wide tenant base, resulting in lower vacancy rates compared to standard rentals.
4. Supportive Planning Policies and Urban Development
The Victorian Government is actively promoting diverse housing solutions to address the housing affordability crisis. Initiatives like the Inclusionary Housing Pilot aim to deliver a mix of social, affordable and market housing on surplus government land, encouraging developments that include co-living arrangements.
5. Scalability and Exit Opportunities
Investors have the flexibility to develop multiple co-living sites or convert existing properties to meet the growing demand. The increasing popularity of co-living spaces enhances their resale value, offering attractive exit strategies for investors.
As Melbourne continues to grow and evolve, co-living properties offer a sustainable and profitable investment avenue, addressing the city’s housing needs while providing investors with robust returns.
The Top Areas for Co living Investment in Melbourne
Prime Inner-City Co-Living Hotspots
These areas are renowned for their proximity to the CBD, vibrant lifestyles and strong demand from students and young professionals:
- Melbourne CBD: The heart of the city, offering unparalleled access to universities, employment hubs and public transport.​
- Carlton: Home to the University of Melbourne and RMIT, making it a magnet for students. Co-living properties here can yield around 7% or more due to high rental demand.
- South Yarra & Toorak: Upmarket suburbs with excellent amenities, attracting professionals seeking quality shared accommodations.
- Fitzroy, Richmond and Brunswick: Trendy neighborhoods popular among young adults for their cultural scenes and accessibility.​
- St Kilda & Prahran-Windsor: Beachside and nightlife-rich areas appealing to a diverse tenant base.
High-Growth Outer Suburbs & Corridors
These regions are experiencing rapid development, offering affordable entry points and strong rental yields:
- Wyndham (Werribee, Tarneit): Significant infrastructure projects and population growth make this area attractive for co-living investments.
- Melton & Rockbank: Among Melbourne’s fastest-growing suburbs, with increasing demand for affordable housing options.
- Hume (Craigieburn): A burgeoning area with expanding amenities and transport links.
- Casey & Cardinia (Cranbourne, Clyde): Rapidly developing suburbs with a young demographic, ideal for co-living setups.​
Investment Insights
- Rental Yields – Co-living properties can potentially offer gross rental yields between 8–12%, significantly higher than traditional rentals.
- Tenant Demographics – Ideal for students, young professionals and individuals seeking affordable, community-oriented living spaces.
- ​Property Types – Both inner-city apartments and outer-suburb houses can be optimised for co-living, depending on the target tenant profile.
How INVIDA Helps You Build a Profitable Co-Living Investment in Melbourne
At INVIDA, we offer a complete, end-to-end solution for building profitable co-living investments in Melbourne. Our tailored services cover every aspect, from initial property selection and choosing floor plans (including designs with 4 or 5 micro-apartments for various budgets) through to finance, construction, certification, furnishing, advertising, and securing suitable tenants. This comprehensive approach is designed to make your Melbourne investment journey seamless and highly profitable.
Strategic Property Selection and Setup
We help you identify the most suitable properties for co-living investment across Melbourne’s high-demand areas, ensuring they align with local zoning, planning and building regulations.
Expert Tenant Management and Community Engagement
Our team manages every aspect of tenant sourcing, screening, leasing and maintenance. We also focus on creating strong, vibrant communities within our co-living spaces, helping to foster tenant satisfaction and long-term occupancy.
Optimised Rental Returns
Through carefully structured pricing strategies and value-added services like utilities, Wi-Fi and cleaning included in the rent, we maximise your rental yields and create a competitive offering in Melbourne’s tight rental market.
Full Compliance with Local Regulations
We stay on top of Victoria’s evolving housing policies, planning codes and building standards to ensure your co-living property remains fully compliant — protecting your investment and minimising risk.
Ready to Invest in Co-Living in Melbourne? Let’s Get Started!
Whether you’re an investor or developer looking to tap into one of Melbourne’s fastest-growing property trends, INVIDA is here to help. Our expert co-living property management services are designed to maximise your returns while delivering quality housing that meets today’s demand for affordability and community living.