The housing sector faces challenges due to outdated models, with shortages, affordability issues, and demographic changes necessitating re-evaluation. Rising single-person households and aging populations urge adaptation to diverse needs. Collective housing models, like co-housing and co-living, gain prominence, emphasising shared resources and community integration.

Initiatives like Germany's Baugruppen model empower residents in development and ownership. Projects like R50 Baugruppen in Berlin and Bay State Commons Cohousing illustrate participatory design and cost efficiency. "Open building" concepts, exemplified by Object One, offer customisable living spaces. Co-living emerges as a solution, blending private quarters with communal amenities, catering to the rise in single-person households. This dynamic landscape reflects evolving urban lifestyles and housing demands.