How cohousing can reshape your social sphere in retirement

Connection through cohousing

Imagine if, rather than barely knowing your neighbors, you run into them every day as you cross the courtyard. You share tools, trade garden vegetables, maybe attend the same workout class. This is the idea behind cohousing. 

While the traditional home search focuses on finding the right space and hoping for good neighbors as a bonus, cohousing reverses the equation. Instead, a group comes together with the intent to live in a close community, then works on finding or developing the spaces and homes to make it possible.

If you’re craving connection, looking to pool resources, and willing to pitch in to save on costs, cohousing may be a viable option. So how exactly does cohousing work? And what should you consider while determining if it’s a good fit?

What is cohousing?

Cohousing is an approach to living focused on building community. Residents live in private homes, but share common spaces and collaboratively plan and manage the community. Also known as housing cooperatives, intentional communities, or cooperative communities, cohousing lets you live together, separately, so you can enjoy the benefits of both. 

In a cohousing community, asking to borrow a cup of sugar is only the beginning. Residents say the bonds are rich. Community members look after each other when someone’s sick or needs an extra hand with the kids. An older resident might teach woodworking to the neighbors who, in exchange, are always ready to help with things like printers and software installation. Cohousing puts mutual aid and support at the forefront, without sacrificing privacy and time for yourself.

The first modern cohousing community dates back to 1972, when 27 families in Denmark came together with a new vision for collective living. The model has since spread to many other countries, including over 300 active cohousing communities in the United States (with a high concentration in California and the Bay Area). 

Why cohousing?

The health risks of loneliness and social isolation are well-documented. And on the heels of COVID-19’s forced isolation, many Americans are looking for ways to preserve and strengthen their bonds and connections. For members of Generation X, this is especially true as they send kids off to college and look towards retirement—transitions which tend to shrink social circles.  

The sense of community is one of cohousing’s biggest draws. But fans of cohousing note other benefits:

• Shared resources: Communities often share everything from garden and power tools to music and sporting equipment. Enjoy the community piano for a fraction of the cost, and maybe learn some tips from a neighbor in the process.
• Constructive self-governance: Horror stories about HOAs in traditional housing or condo developments are far too common. By self-selecting for residents who can work together, cohousing communities avoid common pitfalls of democratic decision-making.
• Proximity and safety: Spaces built for social contact encourage neighbors to watch out for each other without being nosy. If someone’s lingering around your courtyard or shared spaces, you’ll know they’re out of place and have the mutual protection of neighbors to promote a safe response.
• Diversity: Intentional communities make a point of bringing together people of various ages and different social, ethnic, and professional backgrounds.  This is especially true in intergenerational communities, where some units might be reserved for families, seniors, etc.

As one resident of an Oakland cohousing community said, “Our ages range from four years old to 86, and that heterogeneity is key to our collective thriving. The youngins offer energy, delight, and a sense of hope. The elders offer perspective and wisdom, and remind us to slow down and move at the speed of real relationships. Everyone in between has various gifts, skills, and ways of shaping their days and contributions.”What makes cohousing communities different?

Cohousing communities can look all sorts of ways, but several aspects set them apart from other types of residences:

• Communal facilities: Every home is fully functional on its own, with shared spaces to encourage interaction and connection. Prepare meals together in a communal kitchen, come together for weekly music performances, or see how long it takes younger residents to pick apart your habits in chess.
• Neighborhood design: With buildings clustered around open spaces and cars at the periphery, you spend more time mingling with neighbors and less time retreating straight from your garage into the isolation of a quiet home.
• Shared responsibilities: Residents come together to maintain and improve the community. It could mean painting, gardening, or making small improvements. But imagine the joy of splitting lawnmower duty ten ways.
• Democratic management: Members all have an equal say, with many communities operating based on a consensus rather than simple majority. But with conflict resolution built into the process, it feels more like an extended family that all gets along than a political mess.
• Collaborative design: Depending on the community, residents drive the process from initial design to land selection to move-in. At the very least, you’ll have a say in how things are run. Build, foster, and maintain the community as you want it.
• Financial autonomy: Unlike communes popular in the 1960s and ’70s, each household owns its own property and maintains financial independence. Shared costs go through homeowner associations (HOAs) or community land trusts.

Keep in mind—while cohousing focuses on communities, every resident still maintains their own home. Don’t worry, introverts—you still have your private space to regroup and recharge.

Exploring Bay Area cohousing communities

Cohousing’s roots are foreign, but its modern American lineage begins here in the Bay Area. Architects Kathryn McCamant and Charles Durrett studied the cohousing concept for years in Denmark before bringing it to California. Their Berkeley-based organization, the Cohousing Company, is a leading firm for consulting on new cohousing projects.

The greater Bay Area features more than 20 intentional cohousing communities from Santa Cruz to Santa Rosa. Given Berkeley’s prominence in hippie culture, it’s probably not surprising the East Bay is home to more than half of the Bay Area’s cohousing projects.

Diversity is one of the Bay Area’s hallmarks, and the region’s cohousing communities reflect that, including examples like:

• Mountain View Cohousing, a condo complex with shared open spaces in the heart of Silicon Valley
• Doyle Street Cohous
  ing, a converted factory hearkening back to Emeryville’s industrial past
• Swan’s Market Cohousing, an urban, 20-unit community built out of the historic Swan’s Market building in Old Oakland
• Pleasant Hill Cohousing, a sprawling, 32-unit complex in the East Bay suburbs
• Temescal Commons, a smaller community in Oakland’s Temescal neighborhood

Financial aspects of cohousing

When you join a cohousing community, you generally buy your own home—whether it’s a condo, townhouse, or free-standing building—as well as a fractional share of any shared spaces. It works just like any other home purchase, through cash transactions or securing a mortgage from a bank.

Monthly costs

Cohousing communities have similar costs as other living situations, but it depends on the setup. Here are some costs to consider:

• HOA dues: Monthly community fees will depend on the shared spaces and amenities. For example, Pleasant Hill Cohousing’s monthly dues are anywhere from $467 to $716 based on property size, but they cover access to and upkeep of a large complex. Unlike traditional condo complexes, HOA fees rarely go to professional property managers, which means dues directly benefit residents.
• Property taxes: The mix of shared and individual ownership may have property tax implications. Most jurisdictions tax property with shared owners as one entity and let the owners divide the tax burden as they see fit. Ask for copies of tax bills from any communities you have serious interest in and consult with their local jurisdictions if you have any questions.
• Utilities: Many cohousing communities make sustainable and green choices that result in lower utility bills. Solar power, waste reduction strategies, shared maintenance, and communal gardening can further reduce costs. Some communities also wrap utilities into the monthly HOA dues—make sure to ask for details if you’re trying to compare costs.

Eco- and cost-conscious choices are attractive to many Gen Xers, who are looking to optimize their health, reduce environmental impact, and plan for longevity.

Long-term outlook

Resale is another key financial consideration. Regulations vary, but most HOAs will either require or strongly encourage you to sell your home to someone on the cohousing community’s waiting list. Most cohousing projects advertise that resales happen at market value, but be sure to review the resale guidelines to understand your options.

Health and well-being in cohousing

As people age, finding the right living situation becomes increasingly important. Cohousing is, of course, no substitute for a medically-staffed care facility—but cohousing community residents say there are other positive health impacts:

• They feel more connected and less lonely: Social contact keeps us healthy—research has found isolation can be as harmful to health as smoking 15 cigarettes per day.
• They stay more active: Many communities have physical group activities like yoga, group walks, or swimming classes. Making physical fitness both convenient and socially engaged helps residents stay active and healthy.
• They still have access to healthcare – Cohousing communities that serve older adults and retirees will often be located near healthcare facilities, with easy access to public transit or rideshare options for residents who no longer drive.

Most importantly, cohousing groups offer support systems that are baked into the community. Imagine needing someone to move a heavy bookcase, steady the ladder, or check in on you after a medical procedure. In a traditional neighborhood, you might hesitate to bug your neighbors. Whereas in a cohousing community, someone who’s ready and willing to help is right outside your door.

How to get involved in cohousing

Given all the variables, finding the right cohousing community can be more complex than a typical home search. There are a few steps to identifying a place you’ll feel comfortable:

1) Identify realistic options based on your goals

A cohousing community directory can help you look for options, with price and amenities being key criteria. Do you want to live in an urban, walkable environment, or a more suburban project? Are you looking for a low-maintenance condo complex or more wide open spaces? Narrow down based on your needs and budget. 

2) Plan initial visits

Contact your shortlist of options and plan times to make a first visit, with some key questions in mind:

• Do the amenities and property live up to expectations?
• Is the location and surrounding area comfortable?
• Do the members make a good first impression?
• What are the rules and expectations of the residents?
• How is the community structured financially?

3) Spend time with the community

Before committing, spend more time with the community. See if you can join for a communal meal or work day to get to know people better and see if you’re a good fit.

It’s also valuable to attend community meetings as an observer. Seeing how residents handle the decision-making process and any conflicts can help reveal any personalities or processes you might find difficult.

4) Explore the process of joining

Unless a cohousing community is brand new, they probably have a waiting list to join. Many groups also offer some form of non-resident membership, allowing people to participate in the community, but usually without any voting or decision-making rights. This is a great way to integrate yourself into the community—and reap the benefits of building social bonds—while waiting for the opportunity to move into the complex.

The future of Bay Area cohousing

Interest in Bay Area cohousing is growing, but it’s still a relatively small portion of the housing market. However, there’s ample opportunity to be a part of shaping the next wave of cohousing communities. Some of the trends that will shape future Bay Area cohousing projects include:

• Density: Gen Xers preparing to retire may want to trade suburban sprawl for walkability, public transit access, and maximizing the land their community uses.
• Affordability: Bay Area real estate is expensive—there’s no way around that. But finding ways to increase affordability and ensuring access for people with diverse backgrounds will strengthen the social tapestry of cohousing communities.
• Sustainability: Many cohousing communities already lean green, but there is always progress to be made. Look for newer, leading edge projects to focus even more on environmental consciousness.

Whether you want to find a cohousing community to join or be part of launching a new one, there’s no better time to start planning than now.

Developing financial plans that include cohousing

Cohousing can be a great option at any stage of life. But it’s especially attractive for people whose children are leaving the nest or who are approaching retirement. It allows you to downsize your physical space and grow your social sphere, often while saving money. However, it’s not a decision to make quickly or lightly. There are two key aspects of planning:

• Strategy and timing: With very few openings available, moving into cohousing takes a lot of preparation, and perhaps a bit of luck. If it’s something that interests you, start exploring it sooner than later.
• Finances: You’ve probably been investing for retirement, but how would a move to cohousing change things? What are the implications of selling your current property? Do you need to consider different insurance?  How should you adapt your financial plan?

If you want help understanding the financial impact of living in a cohousing community, whether or not it is in the Bay Area, contact us today. Our team of advisors can help you plan for a future built on both financial independence and social wealth.