How to live in New York for $1,375 a month, thanks to this startup
Communal living could just be the next big thing in New York's long-tortured and inflated real estate market.
WeLive, a communal living space operated by co-working space WeWork, opened its doors on Monday.
The building has all of the trappings of a luxury apartment: a wellness room for yoga and barre, a chef's kitchen, a laundry room, a bar, and a roof deck with a soon-to-open jacuzzi.
You May Also Like
And it will only cost you $1,375 — that is, if you're OK with sleeping on a bed, with a curtain for privacy, in a room with one other person. (Yes, you'll also be sharing a bathroom and kitchenette).
There are other price points in the WeLive space: $2,000 for a private bedroom in a shared apartment (so yes, also a shared bathroom and kitchenette) or $2,550 for a private studio apartment with the works.
There are other perks to living in WeLive: each room or apartment is fully furnished, with linens, dishes, and utensils. There's free internet, cable, beer, and sparkling water. And for $125 flat, residents have access to a cleaning service, wellness classes, and other community events.
The building in New York is located on 110 Wall Street in the Financial District, ironically only steps away from some of the big banks and the New York Stock Exchange — the symbols of American wealth.
WeLive will also open up shop in May in Arlington, Va. — close to Ronald Reagan National Airport, but about a 20 minute Metro ride from the heart of D.C. The D.C. location is a bit cheaper, with beds starting at $1,000 and private rooms starting at $1,300, per Business Insider.
Is it worth it?
So is it a good deal?
Well, according to real estate research firm MNS, the average cost, as of February 2016, of a no-doorman studio in 11 of Manhattan's neighborhoods are cheaper than WeLive's private studio. All of the studios in Queens' neighborhoods cost less than WeLive's private studio. And the average price of a studio in Brooklyn, according to MNS, is cheaper too, at $2162 per month.
MNS doesn't keep stats on the Bronx, which does tend to be cheaper than its fellow boroughs.
But WeLive does appear to be a good deal for its neighborhood. WeLive's private studio is slightly below the average market rate studio in the Financial District, which costs about $2,705 a month, according to MNS.
And, according to real estate site StreetEasy, there's one, no-fee two bedroom apartments on the rental market in the neighborhood that would cost two people $1,225 each — less than the shared bedroom in WeLive.
But, of course, New York real estate is unpredictable — and the price tag advertised oftentimes isn't the price you end up paying.
Communal living en vogue
Communal living has come into popularity in recent months. And it's a booming industry for the startups behind it.
Common, which is valued at $20 million, has three communal living spaces in Brooklyn (two in Crown Heights and one in Williamsburg) — and it received more than 300 applications for 19 bedrooms in its first house, according to Bloomberg. Other co-living startups include PureHouse in Brooklyn and Krash, with locations in Boston, New York, and D.C.
WeWork co-founder Miguel McKelvey told Forbes that he hopes future tenants might be attracted by friendly and collaborative environment.
“We are happy if there are some bros here having a good time,” McKelvey told Forbes. “But there will also be people here eating wine and nice cheese and watching ‘The Bachelor,’ too. It’ll be diverse, and if we do our job, it will stay that way.”
According to a October 2015 story from BuzzFeed, WeWork has high aspirations for WeLive, citing a business plan that projected WeLive to account for 21% of the company’s overall revenue by 2018, and eventually bring in $605.9 million annually.
Venture capitalist Matthew Ocko appeared to agree on Twitter.
This Tweet is currently unavailable. It might be loading or has been removed.
But McKelvey struck a different and less definitive tone.
"This is an experiment, not a conclusion," McKelvey told Forbes.
Have something to add to this story? Share it in the comments.
