New York City - based co - living company Bedly has closed down , leaving over 600 tenants looking for a new home . The company had raised $ 7 m but its founder said difficulty raising further funding and a crowded market , with over 12 competitors in New locations , led to its demise . Communal housing has flourished in the city , but companies struggle to survive , with the cost of property acquisition often prohibitive , which raises concerns about the feasibility of the co - living business model in some areas . Bedly also faces questions about whether or not it abided by housing regulations .
New York City-based co-living company Bedly has closed down, leaving over 600 tenants looking for a new home. The company had raised $7m but its founder said difficulty raising further funding and a crowded market, with over 12 competitors in New York, led to its demise. Communal housing has spread in the city, but companies struggle to expand, with the costs of property acquisition often prohibitive, which raises concerns about the feasibility of the co-living business model in some areas. Bedly also faces questions about whether or not it abided by housing regulations.