Boarding houses and co‑living housing provide compact rental accommodation for a range of occupants, with minimum tenancies of 3 months. Both housing types are typically built in well-connected areas, where residents have convenient access to work, study and recreation opportunities. There are maximum room sizes for private rooms to make a clear distinction between apartments in a residential flat building and these housing types. The smaller room sizes are offset by the shared spaces and communal facilities provided in these developments.

One key difference between boarding houses and co-living housing is that boarding houses are a type of affordable housing that must be managed by registered community housing providers in perpetuity. Co‑living housing has no affordability requirement. Another difference is that boarding houses receive a larger density bonus (30% above the floor space ratio standard) compared with co-living housing, which attracts a 10% bonus. Boarding houses attract the higher density bonus to encourage development of this affordable housing product. The floor space ratio bonus for boarding houses was increased on 14 December 2023 to align with reforms to the in-fill affordable housing bonus scheme.

Co-living housing must contain at least 6 private rooms and include key features such as fully furnished, ready-to-occupy private and shared spaces. A manager, who is responsible for the shared spaces, should actively encourage a sense of community. Co‑living housing often appeals to young professionals and key workers.