By: William Jones

Young renters arriving in major U.S. cities today often face the same question: how do you build a life in a place where rent alone can swallow a paycheck? The rise of co-living offers one answer. By rethinking how housing is designed, priced, and managed, the model is beginning to address affordability challenges while also creating stronger financial outcomes for building owners and investors.

Few companies illustrate this shift more clearly than Outpost Group, which has grown into the largest co-living operator in the United States.

From Personal Struggle to Industry Blueprint

Outpost’s story begins with the experience of its co-founder and CEO, Sergii Starostin. When he first arrived in New York City, he ran into the city’s difficult housing market. Without credit history, connections, or long-term savings, securing an apartment proved nearly impossible. Brokers ignored him. Landlords rejected his applications. The apartments that remained were either unaffordable or deeply unappealing.

That frustration became the foundation for Outpost. Starostin co-launched the company in 2016 with a simple idea: offer furnished shared living spaces that were accessible and appealing for young professionals moving to expensive cities. The goal was to create homes where newcomers could quickly settle in and build community.

Nearly a decade later, that concept has grown into a nationwide operation.

Scaling a New Housing Model

Outpost expanded significantly in November 2025 when it merged with June Homes, a proptech-driven rental platform operating about 2,600 units across seven major cities. Combined under the Outpost Group banner, the company now manages roughly 4,000 units across New York City, Boston, Washington D.C., Chicago, Los Angeles, San Francisco, and Austin.

The company generates an estimated $65 million in annual revenue and operates profitably, a distinction that separates it from many earlier co-living ventures that struggled to scale sustainably.

June Homes also built technology that simplifies renting. Tenants can discover listings, apply, and move in quickly through transparent pricing and a broker-free structure. Founder Dan Mishin described the merger as an opportunity to combine June Homes’ platform with Outpost’s operating scale to build a national leader in flexible living.

The Affordability Equation

Co-living’s appeal begins with price. Outpost estimates that its furnished rooms cost 30 to 40 percent less than comparable studios or one-bedroom apartments in the same neighborhoods.

In New York City, where median studio rents exceed $3,000 per month, a furnished private bedroom in a shared Outpost home typically rents for $1,500 to $2,200, including utilities and common areas. For young professionals relocating from places like Cincinnati or Columbus, that difference can determine whether a move is financially possible.

Surveys conducted by the company show that more than 70 percent of newcomers struggle to find housing within their budgets, and more than half say they would choose a private apartment if it were not so expensive.

Why Investors Are Paying Attention

Affordability alone would not sustain the model without strong economics for property owners. Co-living delivers that through density and operational efficiency.

A traditional three-bedroom apartment renting for $4,500 per month can generate $6,000 to $6,600 when configured as three private bedrooms with shared common areas. Research from Primior Group shows co-living properties producing 30 to 50 percent more income per unit than conventional apartment layouts.

Outpost offers landlords two operating options: a property management structure or a master lease model in which the company leases the building and assumes operational responsibility, including vacancy risk. For owners, the arrangement can provide predictable income without exposure to day-to-day management.

A Sector Settling Into Maturity

The co-living industry has undergone a shakeout in recent years, with several venture-backed operators collapsing. Outpost absorbed portfolios from companies including Bedly, interns.nyc, and Common, helping stabilize properties that might otherwise have been left vacant.

Globally, the co-living market is valued at roughly $16 billion and projected to reach $30 billion by 2030. In the United States, rising costs, zoning limits, and slower construction continue to expand the population of long-term urban renters.

Flexible shared living may not solve the housing crisis on its own. Yet the Outpost–June Homes merger shows how the concept can work at scale. Young renters gain access to expensive cities, while building owners unlock stronger revenue per square foot with a dependable operating partner.