Why Builders Are Turning to Co-Living in 2026

Episode 44 of Mortgage Conversations dives into the growing trend of co-living developments among homebuilders. With mortgage rates at 6.48% and the median home price still above $400,000, builders like Lennar and KB Home are experimenting with shared-living models that bundle private bedrooms with communal kitchens and living spaces. Lucas explains how co-living offers an affordable entry point for first-time buyers and discusses the financial mechanics behind these projects, including higher yields per square foot and faster lease-up times. Luna pushes back on regulatory hurdles and asks whether this is a genuine solution or a stopgap. They cite specific data: building permits are up 4.4% from a year ago, but housing starts are down 2.8%, suggesting builders are pivoting to multi-family structures. The episode explores whether co-living is a fad or a permanent shift in housing. #CoLiving #Homebuilders #Lennar #KBHome #HousingAffordability #MortgageRates #RealEstate #BuildingPermits #HousingStarts #FirstTimeBuyers #MultiFamily #Finance #Business #Podcast #FexingoBusiness #BusinessPodcast #MortgageConversations #RealEstateTrends Keep every episode free: buymeacoffee.com/fexingo