APN Prestige Group: 2025 Co-Living & Rooming House Investment Report
The demand for flexible, affordable housing options is rising across Australia, and co-living and rooming houses are emerging as standout performers in the property investment landscape. These asset classes are gaining traction due to their high rental yields, lower vacancy rates, and growing appeal among students, professionals, and low-income renters. This report explores the benefits, regional performance, and strategic value of investing in co-living and rooming house properties in 2025.
Understanding the Asset Classes
Co-Living: A modern form of shared housing that provides private bedrooms with shared common areas (kitchen, living, laundry). Typically not as tightly regulated as rooming houses.
Rooming House: A property where multiple tenants lease individual rooms, governed by council permits and building codes. Often used for affordable and transitional housing.
Key Benefits of Co-Living & Rooming House Investments
| Benefit | Description |
|---|---|
| High Rental Yield | Generates 8–12% gross yield by renting rooms individually |
| Lower Vacancy Risk | Affordable rents attract steady demand from diverse tenant pools |
| Cash Flow Positive | Higher income vs. traditional leases ensures strong cash flow |
| Affordable Entry Points | Often lower capital outlay than duplexes or apartments |
| Council-Approved Value Uplift | Rooming house permits can significantly boost end property valuation |
| Strong Government Support | Aligned with housing affordability goals and social policy initiatives |
Regional Hotspots for 2025
Victoria (VIC)
Melbourne West (e.g., Werribee, Melton): Strong population growth, university and TAFE demand.
Geelong & Ballarat: Growing commuter population and student presence make these ideal locations.
Queensland (QLD)
Logan & Ipswich: Rapid population growth, affordable land, and strong rental demand.
Caboolture & Moreton Bay: Attracts essential workers and students, offering stable occupancy.
Western Australia (WA)
Perth Outer Suburbs (e.g., Armadale, Baldivis): Rising demand for affordable housing and limited supply.
Rockingham: A strategic coastal location with rental demand and investor interest.
Comparative Snapshot: Co-Living vs. Rooming Houses
| Feature | Co-Living | Rooming House |
|---|---|---|
| Regulation | Low to Moderate | High (Council permits required) |
| Rental Yield | High (7–10%) | Very High (8–12%) |
| Tenant Profile | Students, young professionals | Students, low-income, shift workers |
| Build Requirements | Flexible | Requires specialist compliance |
| Time to Market | Faster | Slower (permits, construction) |
| Value Uplift Potential | Medium | High with council certification |
Investment Strategy Recommendations
Target High-Demand Suburbs: Focus on regions with proximity to universities, hospitals, and transport.
Blend Asset Types: Use co-living for faster entry and rooming for long-term cash flow and equity uplift.
Engage Specialist Builders: Ensure compliance and maximise rental configuration.
Apply for NRAS or Grants: Tap into any available state-level incentives or low-income housing schemes.
APN Prestige Group Advantage
At APN Prestige Group, we help you identify the best locations, builders, and configurations for co-living and rooming house investments. Our team specialises in zoning advice, financial feasibility, and council engagement to ensure a smooth path to positive cash flow and long-term capital gain.
📞 Call us on +61 489 267 176
📧 Email: info@apnprestigegroup.com.au
🌐 Visit: www.apnprestigegroup.com.au
APN Prestige Group – Property Investment. Built on Strategy. Backed by Data.