Micro-apartments are beginning to spring up in population-dense cities including Chicago, Boston, San Francisco and New York City. Located in popular, urban neighborhoods in these cities, micro-apartments are great housing options for middle-class, single and younger renters looking to live in the desirable neighborhoods whose housing options may otherwise be unaffordable.
While property managers may be wary of units going for less money per month, the upside is that micro-apartments allow property managers to offer more total units – at a higher rent per square footage.
As Ashley Halligan, an editor at Software Advice, says, “New York City sets its minimum square footage to 250, and the average square footage of a one-bedroom apartment there is 750. This means you could create three micro-apartments out of one average-sized apartment.” With each unit going for $1,600 a month, micro-apartments can bring in $2,000 more than before.
Property managers need to consider design and construction costs and location before starting a micro-apartment project, but with the right factors, micro-apartments can be a very profitable investment.
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