If only these walls could talk?: The impact Real Estate has on loneliness

Feeling lonely? Being part of a community can help with isolation.

The Human connection

"If only these wall could talk" is a sentence I've probably uttered in times of reflection and nostalgia. Reminiscing of younger more hedonistic days, where diaries would be chockablock with social events and spontaneous get togethers, more often then not fueled by a bottle or two of inexpensive wine. There was a time when it felt like the very thought of a night in watching TV alone would be unthinkable, not with the countless social engagements on offer and a serious case of FOMO.

And, as inevitable as time itself, these phases of life pass. The constant throughout those days wasn't the mediocre wine, though that played a vital supporting role, it was friendship. Friendship is a funny thing. Some friendships burn slow and last a life time, whilst others can have a shorter yet high octane span. These often help define a certain juncture in our lives and occasionally have an even greater impact on life's journey than the former.

Friendships are intrinsic with the human experience, after all, we are social creatures. Over millennia we learnt that we would thrive if we built relationships and lived together as communities.

Nowadays, whilst our psychological, physiological and behavioral needs fundamentally haven't changed, the environments we live in have. Oddly, technologies created intended to keep us connected have had the opposite effect. Social media has only exacerbated the feeling of loneliness, especially amongst the young with levels of isolation increasing, one push notification at a time.

"If only these wall could talk" might not be a warning sign of insanity, but a tool for overcoming loneliness and the associated mental health impacts resulting from it.

The true cost of loneliness

According to a 2022 study by the Campaign to End Loneliness, just a fraction under half of UK adults (49.63%) reported feeling lonely. This is a staggering figure, and of those 7.1% (3.83 million people) experience chronic loneliness. A separate study from the campaign to end loneliness found that loneliness can increase risk of early mortality by 26%.

Loneliness is associated with an array of risks and issues. Behavioral risks, such as increased likelihood of smoking and physical inactivity as well as psychological issues such as low self esteem and physiological risks such as high blood pressure ,increased risk of coronary heart disease, stroke and type 2 diabetes. Loneliness is also associated with cognitive decline and dementia.

Whilst risks associated with loneliness may seem to be impacting the older generations, the truth is far more complex. According to the UK Government's "Tackling Loneliness Review", loneliness is higher in certain demographics. Notably 16-24 year old's, which goes against the common preconception that loneliness as an issue that just impacts later life.

Interestingly, this same review identified renters, those that have lower neighborhood belonging, and lower local social trust as being more acutely susceptible to loneliness. The impact of this is far outreaching beyond the individual. 62% of lonely young people say that loneliness contributes to lower confidence, which in turn creates a wide variety of negative outcomes.

The staggering annual cost to UK employers (once sickness, caring and low productivity is accounted for) is estimated to be in the region of £2.5bn. Severe loneliness is estimated to cost the UK £9,900 per person, per year. Loneliness is like a rot that gets into an individual and eats away at many different areas of their lives. Although, clearly the cost is not just on the individual but society as a whole.

The impact Real Estate has on loneliness

Whilst there are multiple industries that can (and should) work to reduce the levels of loneliness, the impact Real Estate has on loneliness is fundamental and can play a leading role in tackling the issue. After all, it is this sector that creates the environments in which we live, and is the foundation of how we interact.

An LSE 2022 review of how the Built Environment can tackle loneliness identified several ways in which we can create places that encourage social interaction. It is the property industry that create the environments that allow for interaction and relationships to develop. By designing inclusive spaces for multiple demographics to freely and happily use, we can help nurture these relationships. Whether that is by creating welcoming destinations encouraging dwell time or by designing bump points that forces interaction in specific areas.

The industry can help by making better use of the natural environment too. Well connected highly accessible green spaces which accommodates a variety of recreational and leisure activities helps with loneliness and our overall health. Green Infrastructure has associated benefits towards improving our mental health and the environment, this was made most clear during lockdown.

How Coliving can combat loneliness

Whilst renters are identified as a demographic that are more susceptible to suffering from loneliness, it does not mean that this has to be the case. Home ownership has been a part of the national psyche for generations. But, in recent years getting a foot on the property ladder has proven prohibitive to many. The costs far exceeds average wages and coupled with higher interest rates the hope for many aspiring home owners has been lost.

The rental model should be seen as a highly attractive alternative to purchasing, allowing the resident flexibility. This should not be at a cost to our sense of belonging or feeling part of a community. The rise of Coliving can play a part in addressing the negatives of loneliness, and help create that sense of community.

These purpose built environments encourage social interaction, facilitated by active management, allow residents to feel connected and develop new friendships. That is why Coliving has proven so popular with new comers to an area, it provides the perfect environment to connect with new people. The addition of coworking facilities in many of these developments also plays a part in allowing these interactions to take place.

Other Use Classes and ESG response to loneliness

One of the perceived casualties of the pandemic was the office sector. Lockdowns made working from home compulsory and the emergence of technologies to support it only seemed to drive the death nail to the sector. However, what we could not have appreciated at the time was just how fundamental the office is to our careers, and our lives as well.

Many company cultures suffered as a result of WFH. Whilst some argue productivity levels amongst some employees was higher, the detrimental impact on those younger employees was great. With no mentoring from more experienced employees, and without that sense of community that a healthy office environments creates, productivity levels dropped.

But, WFH is not going away. The balance seems to be in favour of a hybrid model of working. It has become clear that in order to get people back in the office, we need to be creating environments that people actually want to spend time in. A home away from home, hardly a ground breaking realisation!

A key pull for getting people back to the office has to be around the idea of human connection and community. The feeling of belonging is so crucial to our wellbeing that it justifies commuting on a packed Central Line with some ones armpit in your face.

More than ever we need to be creating environments where the human experience is at front and center. Just putting in a few beer taps and a ping pong table no longer cuts the mustard, we need to create environments that make people want to come back to the office. If companies don't provide this they will suffer. There will be a high turnover of staff and their brightest will go somewhere else that does. We need to be creating those welcoming places identified in the LSE Built Environment report. Places that allow for a multitude of "happy accidents" to occur, as these are where human connections are made.

The need for welcoming places can even be used to address the threats to our High Streets. High Streets were historically mixed use neighbourhoods. It was not until the boom of retail in the 1980s and 1990s that saw retail completely dominate these areas. By bringing back a greater mix of uses into our High Streets we create more reasons for people to visit them, thus making a healthier High Street as well as enabling more "happy accidents". Just think of the scene in Notting Hill, when Julia Roberts and Hugh Grant bump into each other spilling their coffee. I am not suggesting you throw your flat white over the nearest attractive person next time you're leaving Pret, but you get the point.

The rise of the 'S' part of ESG has been widely welcomed, and like all things in hindsight it seems bizarre that's not always been the case. The realization that cashflow is king, due part to changing consumer and worker habits has taken time for the wider industry to catch up. No longer is it a 'nice to have' element to any development or investment, but a vital component of generating best returns and derisking an asset.

Communities and loneliness

Integrating a project within its community is helping overcome the risk of loneliness. Those that perform best integrate their schemes whilst ensuring that local identity is also respected. These are seamless transitions, not a blot on the landscape.

Perhaps an area where we are a little behind our Nordic cousins, is looking at intergenerational products. Somewhat surprisingly, intergenerational projects have proven very popular in Scandinavia. Here, there are a mix of ages living together typically in a Coliving type environment. Younger residents help those older ones with chores like shopping for groceries and the elder generations help with things like child care. These daily interactions are key to battling loneliness. But, this isn't anything new is it? Communities have existed as long as we have, and unsurprisingly that isn't going to change.