In recent years, the rental market has undergone profound changes, largely driven by the rise of Generation Z and Millennials, whose mobility is supported by digital tools and remote work options. Unlike previous generations, today’s young renters are not tied to a single location, giving them more flexibility in choosing where to live. At the same time, escalating housing prices, particularly in Europe and the United States, have made home ownership increasingly unattainable, driving many to seek affordable rental alternatives.
Young renters, including students and professionals, face several challenges when looking for housing. The high cost of renting in urban centers creates financial strain, while the limited availability of modern, well-equipped housing makes the search for housing competitive and stressful. In addition, the prevalence of “gray” rental – unofficial rentals without formal contracts – poses risks, leaving tenants vulnerable to fraud and without legal protection. These conditions underscore the need for innovative, reliable and flexible rental solutions that can meet the unique needs of today’s younger renters.
In Latvia, Marco Nobel, the founder of Fuse, identified several critical issues in the rental market before launching the company:
When we started, we observed a significant mismatch between market demand and supply.
Young people moving to Riga from abroad often seek fully equipped, ready-to-move-in accommodations that allow them to settle in quickly—unpack their suitcases and start living right away. Since many of them relocate alone, they typically prefer smaller spaces, such as rooms or studios. This represents the demand side.
On the supply side, however, the majority of available options are large apartments that are neither fully equipped nor move-in ready. Adding to the challenge, language barriers frequently complicate communication during the booking process.
Variety of Rentals
To understand how Fuse’s model fills a crucial market gap, let’s examine the main types of rental housing available today. In response to these global challenges, the past decade has seen the emergence of a variety of rental options around the world. Each catering to different preferences and lifestyles.
- Traditional Apartment Rental
This remains the most common form of rental, where tenants independently rent an apartment, often through an agency or directly from the property owner. This option provides complete privacy and control over the space, but also tends to come with higher costs, especially in prime locations, and may require long-term lease commitments.
- Co-living
Co-living has gained popularity as a community-oriented alternative. In co-living arrangements, tenants share common areas such as kitchens and lounges, but usually have private bedrooms. This arrangement provides a balance of social interaction and personal space, often with additional amenities such as cleaning services, Wi-Fi, and utilities included in the rent. Co-living is particularly appealing to younger renters looking for a vibrant, communal living experience in high-cost cities.
- Short-term Rental
For renters in need of temporary housing, short-term rental options like Airbnb offer flexibility and convenience. This model is particularly suitable for those relocating for internships, travel, or short work assignments. Short-term rentals are often fully furnished and offer a wide variety of locations and amenities, but tend to be more expensive for longer stays.
- Student Dormitories
Designed for university students, dormitories offer proximity to campus and typically include amenities tailored to academic life. However, dorm rooms are often small and share facilities that may not provide the privacy or comfort some students seek.
- Flat-sharing
In a flat-sharing model, several tenants share an apartment and collectively cover the rent and utilities, with each person typically paying for a private bedroom (in case of Fuse it’s always fully furnished). Flat-sharing provides an affordable way to live in larger apartments and often fosters a strong sense of companionship among roommates. Unlike company-sponsored housing, flat-sharing arrangements tend to be more casual, allowing for greater flexibility and personalization.
Flat-Sharing: in a Perfect Balance
Flat-sharing is a flexible and cost-effective rental model that offers unique benefits not always available in other types of rentals. Unlike short-term rentals, which can be expensive for extended stays, or student housing, which can feel restrictive, flat-sharing offers the best of both worlds. Tenants in shared apartments typically enjoy a balance of affordability and social opportunities, with the added benefit of furnished, serviced apartments that reduce the hassle of moving and settling in. In Fuse’s apartments, the conditions of stays are very flexible: it starts from 3 months and can be adjusted.
In addition, shared living creates a supportive community, which can be especially valuable for people moving to a new city or country. Living with others creates natural opportunities for socialization and connection, helping newcomers adapt and integrate more easily, impacting satisfaction, morale, and productivity during long stays. Many shared apartments also allow tenants to sign shorter leases or even find a replacement without penalty if they need to leave early, making this model a top choice for young professionals with evolving career paths or students with shifting academic schedules.
As more young people seek an affordable lifestyle without sacrificing convenience and community, shared living has become a viable option that meets these needs. It fits well with the lifestyle preferences of a generation that values experience over ownership, flexibility over permanence, and community over isolation.
According to Marco Nobel, the founder of Fuse, in Riga and other cities in Eastern and Central Europe, this rental housing option proved to be in high demand and was just waiting for the right moment:
Unlike in Western Europe, where shared flats and student-friendly accommodations are common, Riga and many Eastern European cities still lack this type of infrastructure. For students, finding suitable housing in Riga can be a significant challenge. Flexible and furnished rental options are scarce, with most apartments requiring a year-long lease, and language barriers can make the search process even more daunting.
This is where Fuse steps in. We’ve reimagined living spaces by transforming large apartments and offices into premium coliving homes. Each property is thoughtfully designed, and brought to life using the unique palettes and aesthetics from our brand book. This ensures that every Fuse home not only provides the essentials but also carries an authentic, cohesive style. All homes can be easily booked through our tech-forward platform, which allows tenants to sign contracts digitally and manage their stay seamlessly.
But Fuse is more than just a place to live—it’s a community. The moment tenants sign their contracts, they gain access to our online platform. This platform connects them with other Fuse residents in their city and across other Fuse locations, enabling them to build a social network even before they arrive in their new home.
Beyond creating connections, we are the first housing provider that gamifies rent payments. What that means is that our tenants are able to earn points by being active community members and they can use these points to lower their next month’s rent. Here are examples of some of the challenges that they can complete to earn these points: organising a weekly morning run; Participating in our Sunday neighbourhood clean up; Simply refer a friend as a future tenant etc. This gamification is a game-changing feature that sets Fuse apart in this market. What all this means is that at Fuse, we’re not just providing housing; we’re building a lifestyle and a support system for students and young professionals moving to new cities.
This year Fuse has expanded to Riga, Budapest, Prague, and Vienna. For next year the company is planning to launch in an additional 4 to 6 cities in the region.
The rental process is streamlined for maximum convenience. Only an ID is required to rent, no letters of recommendation from previous landlords or proof of income. Сlients submit applications through Fuse’s online platform, and the team responds within 48 hours to finalise details and provide a contract. After securing the booking with a one-month deposit and first month’s rent payment, tenants receive a comprehensive digital move-in guide with everything they need to know about their new home.
Future of the Rental Market
The rental market is on the cusp of further transformation, with flexibility, digitalization and sustainability continuing to define its future. It can be surely expected that flat-sharing will only become more popular; in particular, as digital tools continue to evolve, tenants will increasingly be able to manage leases, pay rent, and communicate with property managers through easy-to-use online platforms, streamlining the rental experience.
Sustainability is also becoming a priority, with eco-conscious renters driving demand for energy-efficient, environmentally friendly housing. Many rental properties are now incorporating sustainable materials and practices that not only appeal to eco-minded renters, but also reduce operating costs in the long run. This shift toward green living aligns with the values of Generation Z and Millennials, who are more likely to choose housing providers that are committed to reducing their environmental footprint.
In the coming years, the rental market is expected to become more inclusive and diversified, with a greater emphasis on creating communities that balance affordability, flexibility, and social connection. One of the most important features of Fuse’s business is the social aspect and the ability to connect people. In the coming year, the company plans to organize events, cooperate with local businesses, restaurants, bars, etc. And the tenants will also be able to reduce their rent through the social aspect, host events, clean and repair the apartment.
The growth of co-living and flat-sharing models shows how companies can adapt to the preferences of younger renters who value convenience, adaptability, and meaningful social interactions. The future of renting holds exciting possibilities as it reshapes the way people live, work, and connect in urban spaces.
That’s why Fuse plans to keep expanding its business, says Ingus Līsmanis, the company’s operations manager in Riga:
We are scaling rapidly, adding new apartments every month and building a bigger team across all locations. Our strategic plan targets expansion to 4 -6 new cities in the next 12 months.Rents will only go up, utilities will go up, demand for apartments will go up. We’re actively seeking property partners in Riga who want to maximize their returns — we offer guaranteed occupancy and professional property management.”
