When looking at buying into a cohousing neighborhood, there are several unique considerations when comparing the buy-in costs with other housing options. Cohousing is a unique housing opportunity based on the desire of cohousing buyers to have a different kind of neighborhood, and that affects how you consider the sales price in a number of ways. At first glance, cohousing homes typically look high in the marketplace.

"Creating cohousing communities is a lot like organic farming. We know we can create tastier, healthier fruit with a lot of hard work and good organic farming techniques. But is the market willing to pay a little more for that fruit?"

So, what are you really getting with the purchase of your home? ​

In the construction stage, sales prices are projected to the end of construction

• Washington Commons homes are priced for final purchase in December 2023 (when construction is expected to be complete)
• Prices may look high at first but by move-in, they’re often a deal in the larger marketplace.
• There’s little control over what the larger housing market does over the years your community is in development. Your price is tied to actual cost, not what the market will bear.

Common facilities are far more generous than even upscale condominium developments

• The idea of 4,500-square feet, of community spaces is unheard of in a conventional residential development of 30 homes.
• Many cohousers don’t look at their home as mere 1,000 square feet, but as 5,000 square feet, because the common spaces are so much a part of their day-to-day living.
• Your share of your common facilities is at least equivalent to buying an extra bedroom outside of cohousing.

 
New homes are more expensive than older homes because of wear/tear and repairs

• If you’re buying into a new cohousing development, you’ll need much less maintenance the first 10 years.
• Conventional new homes are generally priced higher than existing resales for “newness.” 
• Green design and construction is more expensive than conventional, but this generally pays off with reduced energy costs and better air quality.

 
Cohousing homes often have a higher level standard features than other new developments

• When visiting new housing, ascertain what features are standard and what are upgrades.
• Cohousing homes often have a higher level standard features and nicer design, for example, linoleum kitchen floors as opposed to vinyl, more energy efficient heating, etc.

 
Is all that additional space really useful?

• Smaller homes cost more per square foot to build, as they still involve purchasing land and include the same features as larger ones: kitchen, bathroom, foundation, roof, etc.
• Conventional developers will often build big homes that are a lower cost-per-square foot because there are more square feet to amortize the cost over.

 
Like custom homes, a custom neighborhood tends to cost a little more

• We create custom neighborhoods that are designed to meet the specific needs of a certain group of people in a very specific place.
• The scale of the project may make individual homes pricier.
• Like other consumer items, housing is mostly built by large corporate entities that have figured out how to get their costs-per-square-foot down while maximizing their own profits.
  • Conventional builders prefer to build projects with 100+ homes since it’s cheaper, whereas cohousing communities typically range from 20-35 homes.

 
Initial buy-in vs. day-to-day costs of living

• The big economic payoff of living in community comes with reduced day-to-day costs:
  • Energy efficient systems reduce your energy bill.
  • Coordinating transportation with neighbors reduces your travel costs.
  • Sharing occasional meals can reduce your food preparation costs.
  • Many of your current costs may be covered in homeowners’ association dues.
    • trash pickup, sewer and water fees, internet connection, building insurance, etc.
  • The savings is even more substantial as we age — when we can count on community members to help out, provide a ride, or even make it possible to recover at home after an accident instead of having to go to a rehab center.

 
Resales Savings

• When you eventually decide to sell your cohousing home (if your community has stayed organized around resales) you may not need to pay a realtor’s full 6% commission.
• Most cohousing homes sell without a realtor.
• Some, though, have found it useful to engage a realtor at a reduced fee to help with the contracts and closing details.

 
All of this means that you can’t look at a cohousing home through the “cost-per-square-foot” perspective of the conventional real estate world. When you join a cohousing community in the development phase, you’ll have a chance to examine the development budget and see exactly what it costs to design, develop and build. The question is whether what you get is worth what it costs to create to you?
 
People looking at buying into a cohousing community may not be familiar with the current housing market. It’s not unusual for people to be shocked at new housing prices when they really look.
 
Do your homework:

• Find out what housing in your region is selling for and market projections for the upcoming years.
• Look at new housing developments.
• Talk with a financial planner and/or mortgage broker to look at your households’ economics.
  • What can you sell your current home for?
  • Is the market expected to increase by the time you’ll need to sell?

 
One of the great things about joining a cohousing group early is that you have a couple of years to get your own financials in order before the community is completed. This gives you time to do some financial planning to put you in optimal position for home loans and selling your existing home.
 
Creating cohousing communities is a lot like organic farming. We know we can create tastier, healthier fruit with a lot of hard work and good organic farming techniques. But is the market willing to pay a little more for that fruit? Can the farmer earn a living with a local organic farm that’s ultimately better for the earth? That’s a question only the consumer can answer...what are you willing to pay for?
 
And the value of authentic community…priceless.