In cities across the globe, renters are increasingly choosing to take the minimal path and live in micro apartments. These tiny yet efficiently designed spaces clock in at under 400 square feet and lend themselves well to individuals looking to live simply. What started as a method to provide affordable housing, has become something with a much larger impact.
Many cities are currently developing “eco-villages” or “mini-apartments” which not only benefit developers, but the planet as well. Other than lowering your carbon footprint, why would someone subject themselves to a smaller environment? What we have found is that despite the age of the renter, people lean towards micro-living for a few reasons: they want to be in the middle of the action, renting a micro-apartment can benefit their wallet, and people just don’t seem to want big homes like they used to.
No matter what city you live in, if you like to go out, you have your favorite areas. Whether it is downtown Chicago or downtown Portland, locals have their spot and want to be able to access it easily. Typically these neighborhoods cost more money to live in than other areas of a city, and many renters are willing to sacrifice square footage for location. By choosing micro-living you can live in your favorite neighborhood at a better price point, and for many renters, location is everything.
Average studio or one-bedroom apartments can be pricey in many cities, however, by considering a micro-apartment these average prices tend to dip. Renters without much to spend, or little income are more likely to live in an apartment with less accommodations if it means they can save a few hundred dollars a month. This meaningful financial benefit coupled with an ability to live in your favorite neighborhood, has a large appeal to many young or single renters.
More so than other generations, it seems that millennials don’t want or need big homes and apartments. The dream held by previous generations of a home in the suburbs is drifting away, and being replaced by a well kept space near all of the action.
Despite the reasons for choosing a micro-apartment, most developers will agree that they are benefiting from the trend and cities will continue to remain on board. Typically a developer can stand to make roughly 56% more on a per sq ft basis when developing a micro apartment complex. This higher ROI coupled with the many benefits to residents, leads us to believe that the micro-living boom is here to stay.