Key facts
- Several US states have passed or are considering legislation to legalize co-living arrangements.
- Laws targeting occupancy limits and single-room occupancy housing are driving co-living legalization.
- PadSplit, a co-living marketplace, has launched an insurance program called HostGuard for property hosts.
- HostGuard provides coverage for property damage, evictions, and general liability.
- PadSplit will fund the insurance program through a 2.25% increase in member transaction fees.
Legislative efforts to legalize co-living arrangements, often referred to as "Golden Girls" laws, are gaining momentum across the United States as a means to increase affordable housing options. Several states, including Iowa, Oregon, Colorado, Washington, Hawaii, and Texas, have enacted reforms that relax occupancy limits and zoning restrictions on shared housing. Cities like Seattle, Minneapolis, and Austin have also taken steps to permit co-living. PadSplit, a major co-living marketplace that has housed approximately 85,000 people, is launching an insurance program called HostGuard. This program, underwritten by EmpoweredRE Insurance, aims to mitigate risks for property owners by covering property damage, evictions, and general liability, thereby removing barriers to entry in the shared-housing market. PadSplit founder Atticus LeBlanc stated the program was inspired by Airbnb's AirCover and is expected to accelerate growth. The cost of HostGuard will be passed on to PadSplit members through a 2.25% increase in transaction fees. While some legislative efforts have stalled, such as in Connecticut and Rhode Island, proponents like Sam Hooper of the National Co-Living Association are optimistic about future progress and the potential for further state-level reforms.