Understanding Co-Living Housing in NSW: A Comprehensive Guide to SEPP Compliance and Accessibility Standards

Co-living housing has emerged as a dynamic solution to Australia's urban housing challenges, offering affordable, flexible, and community-oriented living options. Introduced under the State Environmental Planning Policy (Housing) 2021 (Housing SEPP) in November 2021, this form of diverse residential accommodation is designed to meet the needs of young professionals, key workers, students, and others seeking compact, ready-to-occupy rentals in high-demand areas like Sydney and Perth. As urban populations grow and housing affordability remains a pressing issue, co-living developments are gaining traction for their ability to increase supply without compromising on quality or inclusivity.

In this guide, we'll break down the statutory definition, key characteristics, planning controls, and practical considerations of co-living housing. We'll also explore how accessibility plays a crucial role in these developments, ensuring they comply with Australian standards and promote equitable living environments. Whether you're an architect, developer, or potential resident, understanding these elements is essential for navigating NSW's regulatory landscape.

What is Co-Living Housing? Statutory Definition and Key Characteristics

Under the current consolidated Housing SEPP, co-living housing is defined as a building or place that meets specific criteria to function as long-term, primary residences rather than transient accommodations. Key elements include:

• Minimum Private Rooms: At least 6 private rooms, some or all of which may feature private kitchen and/or bathroom facilities.
• Residency Duration: Occupants must use it as their principal place of residence for at least 3 months. This distinguishes it from short-term options like Airbnb, hotels, or motels.
• Shared Facilities: Essential communal spaces such as living rooms, kitchens, bathrooms, or laundries, maintained by a managing agent providing 24-hour services.
• Furnishing and Readiness: The development must be fully furnished and ready-to-occupy, blending private and shared areas for a seamless living experience.

Importantly, co-living housing is explicitly not backpackers' accommodation, boarding houses, group homes, seniors housing, serviced apartments, or similar typologies. This focus on purpose-built rentals makes it ideal for urban infill projects, where space is at a premium but community interaction is encouraged.

For developers in Sydney or emerging markets like Perth, co-living offers a way to diversify housing stock. However, success hinges on balancing compactness with livability—factors that tie directly into accessibility compliance under the National Construction Code (NCC) and Australian Standards like AS 1428.1 (Design for Access and Mobility).

Minimum Room Sizes and Amenity Requirements for Occupant Well-Being

The Housing SEPP enforces non-discretionary standards to ensure high-quality amenities, preventing substandard developments. These include:

• Private Room Sizes: A minimum of 12 m² for single occupants or 16 m² for couples (excluding any en-suite kitchen or bathroom areas).
• Communal Spaces: Mandatory indoor and outdoor areas for relaxation and socialization, scaled to the number of residents.
• Facilities Provision: Adequate kitchens, bathrooms, and laundries—either private or shared—to support daily living.
• Management Oversight: A dedicated manager must implement a plan of management, covering maintenance, resident conduct, and dispute resolution.

Typical co-living projects feature 30–40 rooms, though the SEPP allows as few as 6, making it scalable for smaller sites. These standards align with broader goals of housing diversity, but they also intersect with accessibility requirements. For instance, under the NCC Volume One (Class 2 buildings), at least 20% of sole-occupancy units in multi-unit developments must be adaptable or accessible, per Clause D3.1 and AS 4299 (Adaptable Housing). This ensures co-living spaces cater to diverse needs, including those of people with disabilities.

Planning Controls, Permissibility, and Development Incentives

Co-living housing is subject to strict planning controls to integrate seamlessly into NSW's urban fabric:

• Zoning Permissibility: Allowed with consent in zones permitting residential flat buildings, shop-top housing, or—following 2025 amendments to Chapter 6—low and mid-rise housing. Common zones include R3 (Medium Density Residential), R4 (High Density Residential), and commercial areas like B1, B2, or B4. It's generally prohibited in R2 (Low Density Residential) zones.
• Density Bonuses: Developments receive a 10% floor space ratio (FSR) uplift above the Local Environmental Plan (LEP) maximum if dedicated solely to co-living.
• Built-Form Standards: Similar to boarding houses but with a smaller incentive (10% vs. 30%). Evaluation occurs under Section 4.15 of the Environmental Planning and Assessment Act 1979 (EP&A Act).
• No Affordable Housing Mandate: Unlike boarding houses, there's no requirement for community housing providers or locked-in affordability, allowing market-rate rentals.

These controls promote transport-oriented development (TOD) near jobs and amenities, aligning with NSW's push for sustainable urban growth. In Perth, where sensitivities around business naming and local preferences exist, similar principles apply under Western Australia's planning frameworks, emphasizing inclusive design to build community trust.

Practical Context: How Co-Living Differs from Boarding Houses and Residential Flats

Co-living housing bridges the gap between traditional boarding houses (which now mandate affordable rentals via registered providers) and standard residential flat buildings. It provides more self-contained options, like en-suite rooms, and targets a wider demographic without affordability restrictions. In practice, it boosts housing supply in high-demand areas, fostering social connections through shared spaces while offering privacy.

However, developers must address accessibility early to avoid costly redesigns. For example, co-living's compact layouts can challenge compliance with AS 1428.1 requirements for circulation spaces, door widths, and sanitary facilities. Performance solutions under the NCC allow flexibility, but they require expert input to demonstrate equivalence.

Ensuring Accessibility in Co-Living Developments: Expert Insights from Sydney Access Consultants

Accessibility is non-negotiable in co-living housing, as it falls under the Disability (Access to Premises—Buildings) Standards 2010 and the NCC. Developments must incorporate universal design principles to create equitable environments, such as:

• Adaptable Features: Rooms and communal areas compliant with AS 4299 for easy modification (e.g., reinforced walls for grab bars).
• Inclusive Amenities: Accessible paths of travel, ramps, lifts, and facilities per AS 1428.2 (Enhanced and Additional Requirements).
• Performance-Based Solutions: Where prescriptive standards can't be met, detailed briefs and audits ensure safety and usability.

At Sydney Access Consultants, our team specializes in bridging these requirements with practical, cost-effective advice. With expertise in adaptable housing (AS 4299) and inclusive design, we conduct access audits, compliance reviews, and regulatory liaison to support seamless approvals. Our Mid North Coast partner, Sandy Gray, based in Black Beach, brings decades of experience in public sector audits and standards development, making her ideal for regional projects. This ensures developments in Sydney, Perth, or NSW's Mid North Coast deliver immediate social and economic benefits through pragmatic solutions.

By integrating accessibility from the design stage, co-living housing not only meets legal obligations but also enhances market appeal—attracting a broader tenant base and future-proofing investments.

Key Takeaways for Developers and Architects

Co-living housing under the Housing SEPP represents a forward-thinking approach to urban living, emphasizing flexibility, community, and efficiency. To succeed, focus on:

• Aligning with zoning and incentives for faster approvals.
• Prioritizing amenity and accessibility to exceed minimum standards.
• Partnering with specialists for compliance in complex areas like universal design.

As NSW continues to evolve its housing policies, staying ahead of amendments ensures resilient projects.