Luxury has gone micro. Over a decade ago, the micro apartment and loft movement trend began in New York. Today, that trend is showing up in metropolitan cities across the U.S. The motivation behind the move is cheaper rent in high-demand housing districts. Smaller, in this case, is certainly better for both the property owner and the renter.
Trends in Multi-family industry like this are reshaping high-rent neighborhoods. The people flocking to smaller units are young professionals. The attraction is affordable rent in a neighborhood that would otherwise require a roommate, even for a young professional making a high salary.
The movement is encouraging other industries to tag along, including the manufacturing industry. We see specialized furniture that has multiple uses or that folds up to allow for full use in smaller spaces. Little rooms can be transformed in minutes into bedrooms, dining rooms, living rooms. The idea is great because it allows people to live comfortably in a smaller space, which costs less and offers more.
This sort of innovation has the potential to capitalize on a building’s rent ceiling. In high-end neighborhoods in Washington D.C., a 500 square-foot one-bedroom is renting at over $2,200 and your basic micro-studio apartment is starting off at $1,900. The increase in rental revenue is just one boom of this micro-movement.
A prime consideration of property owners is the conversion opportunities in areas where the available apartments are already scarce. As a property management firm with our finger on the pulse of the rental and property management industry, we understand how lucrative this sort of trend is.
For more information about Marquette Management or how we might help you spot usable trends within your rental district, just contact us.Back to all posts