According to a recent analysis of apartment sizes by RentCafe, newly built apartments, in general, are 5 percent smaller than those built 10 years ago. The average U.S. unit built in 2018 boasts 941 square feet, down roughly 52 square feet. According to the study, Chicago ranks third in the nation for the smallest average apartment sizes (a tie with Manhattan at 733 square feet).
Census Bureau data from 2017 on the median square footage of multifamily units suggests something similar with a drop from a peak in 2007.
Three quick responses:
- While the square footage is dropping, I assume the rental price has not dropped at the same rate. Fewer square feet for the same or a higher price?
- According to the same Census data, more multifamily units were constructed in 2017 than in any year in the table (going back to 1999). Do smaller units mean builders and developers can now squeeze in more units?
- This data from RentCafe is connected to a rise in microapartments. The Census data suggests the percent of multifamily units under 1,000 square feet has not increased over 10 years between 2007 and 2017.
So is there a significant trend toward smaller rental units? Maybe a small one that could be worth watching but it could take quite a bit of change for microunits to really be built in large numbers.