Smaller Apartments Are Doing Big Things For Developers

In cities across the U.S., multifamily developers are finding that building less is doing more.

As rents have increased and urbanization has intensified, developers have responded with smaller apartments, and new analysis shows those efforts are paying dividends.

After lagging behind bigger units earlier this decade, the vacancy rates for the smallest 25% of one-bedroom units have dipped below those for medium and larger units, according to CoStar. This is a reversal from earlier in the decade, when the largest 25% of units posted the lowest vacancy rates and the smallest 25% saw rates above 7%, CoStar consultant Robin Trantham told Bisnow. The average unit completed last year measured 941 SF, according to RENTCafé. That is 5% less than the average of 10 years prior. ..

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RSK: Less is more...but it is not by choice but more of necessity.

Ken Nores: I continue to be amazed that we do not look at size as an imediate solution to homelessness and affordable housing. We could solve the problem overnight.