NEW YORK – Coliving operator Outpost said on Tuesday it has merged with rival June Homes, creating the largest company in the U.S. co-living sector at a time when soaring rents are pushing young professionals toward shared housing.
The combined entity, to be known as OJH Holdings, will control roughly 4,000 rental units across major U.S. cities including New York, Boston, Washington D.C., Chicago, Los Angeles, San Francisco, and Austin. The merger solidifies Outpost’s position as a dominant player in a niche that has seen several venture-backed competitors collapse.
Outpost Chief Executive Sergii Starostin will lead the combined company, while June Homes CEO Mauricio Zuniga will become its President.
The deal brings together two firms that have taken a disciplined approach to growth, focusing on profitability while others expanded rapidly and failed. Outpost contributes about 1,400 units to the portfolio, while June Homes adds approximately 2,600. The new company is expected to generate about $65 million in annual revenue.
“We built Outpost to be the reliable operator in a very unpredictable industry,” Starostin said. “Where others chased growth at any cost, we focused on choosing great projects, controlling expenses and treating every building owner like a long-term partner.”
The merger comes during an unprecedented affordability crisis in the U.S. rental market. Outpost estimates its furnished rooms are typically 30% to 40% cheaper than local studios, making coliving a critical option for renters aged 18 to 34.
The new organization, which will employ about 200 people, will continue to operate both of June Homes’ business models, offering landlords standard property management and master-lease co-living services.
For Starostin, the merger is a key step in a long-term strategy to build a “Marriott for coliving,” a unified brand for medium- and long-term furnished rentals. He aims to grow revenue to over $500 million in the next five years and expand into new markets.
“Young people still want to move to big cities. They still want opportunity. What they need is a way to afford it, and that’s the problem we’re here to solve,” Starostin said.