Developers hedging their bets on ‘tiny apartments’ for 20-somethings

Builders are betting on the appeal of so-called “Tiny Apartments” among the twenty-something crowd, and have begun ramping up construction of the smaller studio apartments of 350 square feet or less in anticipation of demand.

The trend is being driven in part by skyrocketing rents in coastal cities. With rents in such cities affordable to so many, developers have responded with much smaller and consequently, much less expensive apartments in those areas. However, in recent months they’ve come to realize that some renters are happy to pay a premium for such dwellings even in cooler rental markets like Milwaukee, Cleveland, Detroit, and Kansas City, Mo.

The Wall Street Journal reports that these micro apartments generally come fully furnished and with amenities including a maid service. Most have common spaces such as community gardens too, in order to foster a sense of community in the apartments.

One example of these micro apartments is the Ollie at Baumhaus building in Pittsburgh, which has tiny studios available at $1,500 per month. Living space is tight, so much so that the couch doubles as a bed. However the average monthly rent for an apartment in Pittsburgh is just $970 a month, which means renters will be paying a premium to live there. Ollie at Baumhaus will open this June, and also features three-bedroom apartments aimed at roomates who wish to share.

“Young people today seem to be able to group together,” said John Hoffman, a partner at UC-B Properties, which is developing a 50-unit building in Kansas City, Mo., that will offer 300-square-foot flats that can be shared with a roommate. Hoffman says the units are modeled after a cruise ship cabin.

Mike Wheatley

Mike Wheatley is the senior editor at Realty Biz News. Got a real estate related news article you wish to share, contact Mike at mike@realtybiznews.com.

Recent Posts

Mobile Apps Perfect for Real Estate Professionals

The world of real estate is constantly evolving – and sometimes it seems like new…

6 hours ago

10 Steps to Becoming a Great Real Estate Agent

Becoming a real estate agent is one thing. Becoming a great one is another. But…

6 hours ago

How AI is Revolutionizing the Real Estate Market

Time marches on, and so does the sophistication of the technologies we use in our…

1 day ago

More Home Buyers are Reaching for ARMs

The demand for homes remains robust. Despite 30-year mortgages being firmly above a 5% interest…

1 day ago

Property Management Trends That Will Shape 2022

Property management currently operates in a very aggressive and constantly changing realm. However, some key…

2 days ago

Everyday Tools and Software Realtors Need to Use

Real estate professionals lead busy lives, so finding better and more efficient ways to do…

3 days ago