Jon StojanWith the number of college and university students worldwide continuing to grow, the need for student housing is also rising, and many countries are experiencing student housing shortages. Studying abroad is also now more popular than ever, with more than 6.4 million international students as of 2021, up from just 2 million in 2000.
With the global student housing market showing no signs of slowing down, one company is shaping the future of the industry with its affordable and accessible urban co-living solutions. Since commencing business in Toronto in 2017, Harrington has expanded to 18 cities across Canada, the US, and the UK, three markets where there is a pressing shortage in student housing. It now has almost 4,000 units in operation, with an occupancy rate of 97% – well above the industry average of 88% – with more than 90% of its clients being college and university students. Harrington’s website receives more than 2 million visitors per year, which is impressive for a highly fragmented industry like mid-term room rental.
According to Harrington, it is able to make co-living more affordable by implementing more space-efficient floor plans for its units, having realized that price is the primary appeal of co-living, especially with housing becoming so expensive in major cities. As a result, most co-living residents do not want to pay extra for common areas or spacious living rooms.
Image credit: Harrington Housing
Furthermore, Harrington is able to maintain its affordable pricing, which includes utilities, due to lowered overhead costs. According to the company, its overhead expenses are only 12%, while the industry average is around 30%. Its units are located in high-rise buildings, which reduce operational expenses by 90%. These units also use modular furniture and partition walls, speeding up furnishing time to just five hours for an entire apartment.
Harrington employs automated lead-to-lease systems and proprietary software, which reduce leasing and management expenses by 60%, while 95% of its sales are made through its own channels, minimizing commissions.
Aside from quicker booking due to the automated lead-to-lease systems, Harrington’s tech platform also includes a resident’s app that makes the entire tenant experience more convenient with multiple services, such as rent payment, support requests, and more. The company also implemented a customer satisfaction tracking system that uses surveys and online reviews analytics, resulting in a customer satisfaction increase of 67% due to being able to locate pain points and predict problems, solving them before they occur.
With a clientele overwhelmingly composed of students and young professionals, Harrington organizes a wide variety of social events that strengthen the community and provide engagement and enrichment to residents.
According to Jonas Emre, Founder and CEO of Harrington, the company plans to be present in at least 20 cities by the end of 2024 and, by 2028, grow that figure to 40 cities, expanding to more cities in the US, continental Europe, and Asia. It also aims to have more than 6,500 units in its network by 2025 and over 17,000 by 2028. With an estimated total addressable market of metropolitan millennials, Gen Z, and newcomers in those 40 cities worth $81.6 billion, Harrington has a potential share of $4.8 billion or just over 5% of the addressable market.
“Over the years, Harrington committed to innovation and excellence in urban living,” Emre says. “Our mission is to redefine urban living with affordable, tech-enabled housing solutions and create vibrant communities that foster growth and real human-to-human connections. We are poised to continue our global growth initiatives in the coming years, and we will keep expanding our network of meaningful partnerships, driving growth that resonates with the needs of our communities.”