Imagine living in an apartment with all of your essentials – galley kitchen, bathroom and pull-out sofa – packed into a 300-450 square foot space. This growing trend, called micro-apartments, presents a unique opportunity for residential property management companies with communities in densely populated cities. The illustration at right is a drawing of what one such apartment might look like in Gerding Edlen’s $100 million Boston Wharf Tower, now under construction.
In an article recently written by Ashley Halligan, an editor at Software Advice, she discussed the rising trend of micro-apartments.
Halligan writes, “Some U.S. cities are maxing out their population capacity with little room to grow. In response, they have two options: develop higher or now, in the case of the latest trend, smaller. Introducing micro-apartments, a new housing option that’s popping up in population-dense cities like Vancouver, Chicago, San Francisco, New York City and Boston.
These units will command lower than average rent, but of course you now have more units. For example, 300-square-foot units offered by Smartspace in San Francisco are going for $1,600 a month. While still pricey, this is considered a bargain in the city, where the average rent was $2,741 in Q4 2012.
If one traditional unit equals three micro-units, this scenario would yield $4,800 in a month’s rent–two thousand dollars more than the income from an average rental.”