flexiblefullpage
billboard
interstitial1
catfish1
Currently Reading

ULI report looks at growing appeal of micro unit apartments

ULI report looks at growing appeal of micro unit apartments

Research shows that micro units have staying power as a housing type.


By ULI | BD+C Staff | December 17, 2014
Rendering: Panoramic Interests
Rendering: Panoramic Interests

New research from the Urban Land Institute suggests that micro units—typically larger than a one-car garage, smaller than a double—have staying power as a housing type that appeals to urban dwellers in high-cost markets who are willing to trade space for improved affordability and proximity to downtown neighborhoods.

The report, "The Macro View on Micro Units," includes an analysis by MPF Research of more than 400 rental apartment communities (comprising more than 90,000 units) built in 2012-2013 in the 35 U.S. metro areas that experienced the highest concentration of multifamily construction during that period. It also includes findings from more than 3,500 responses to an early 2014 survey by Kingsley Associates of renters of both conventional apartments and micro units; and case studies drawn from 30 existing and 18 planned rental communities with micro units that were identified by RCLCO (Robert Charles Lesser & Co.).

The report was prepared for ULI’s Multifamily Housing Councils with support from a grant awarded in 2013 by the ULI Foundation.  

Key findings from the report:

• Micro units are typically about 350 square feet in size, but can range from less than 250 square feet to 500 square feet, depending on the city building code requirements. They have no separate bedroom; sleeping space is combined with living space, but they do have fully functional bathrooms and kitchens.  Micro unit communities place heavy emphasis on multiple amenities outside the units themselves, such as shared communal spaces that encourage socializing and foster a sense of community.

• The target market profile for micro units is predominantly young professional singles, typically under 30 years of age, earning less than $40,000, trending slightly more toward males than females. Other market segments include couples, older single empty-nesters, and temporary users. Singles currently living with roommates tend to be the most interested in making the switch from a traditional unit to a micro unit. 

• The appeal of micro units is largely about economics, as well as place and privacy. Those interested in micro units are seeking to lower their rental costs (the units typically rent for 20 to 30 percent less than larger units); they are also drawn to the trendy “hip” locations where micro units tend to be built, and by the ability to live alone.  

• Nearly a quarter of the renters surveyed who live in conventional apartments said they would be interested in renting a micro unit. Fifty-eight percent said they would not be interested, primarily due to the lack of a separate bedroom, less storage space and less living or dining space.

• Those who are interested in switching to micro units ranked access to a grocery store as their top priority for a neighborhood amenity, followed by restaurants and a gym. In terms of project amenities, a laundry room ranked highest, followed by assigned parking, visitor parking, and a fitness center; and for unit amenities, a washer and dryer ranked first, followed by built-in closet/drawers and storage space. More than half were interested in multi-functional, convertible furniture.

• Those currently living in micro units cited location as the top factor influencing their decision to move into the small units, followed by price, proximity to work/education institutions, proximity to neighborhood amenities, the ability to live alone, and proximity to transit.    

• Smaller and micro units outperform conventional units in the marketplace, in terms of achieving higher occupancy rates and garnering significant rental rate premiums (rent per square foot) compared with conventional units.   

• The market is shifting toward a greater mix of smaller studio and one-bedroom units being included in traditional apartment communities, as well as more construction of micro-unit communities. Studio and one-bedroom units accounted for nearly 51 percent of the 2012-2013 completions, up drastically from 41 percent in 2002-2003.

• Despite the rising popularity of micro units, some developers are building in the flexibility to easily convert two side-by-side units into one larger unit if demand shifts back to more conventional models.

RCLCO’s case study research identifies four trends (primarily associated with Generation Y) that are linked to the rising appeal of the units: delayed household formation, an increase in single-person households, a decrease in car ownership, and the tendency to accumulate fewer belongings and participate in the “sharing economy.”

Among the case studies that contributed to the best practices and lessons learned: Factory 63 in Boston; The Flats in Chicago; Lofts at 7 in San Francisco; Arcade Providence in Providence, Rhode Island; Eko Haus Freedom Center in Portland, Oregon; and My Micro NY in Kips Bay, New York. 

“Whether this (increased development of micro units) turns out to be a lasting phenomenon or a passing fad, micro units have renewed the focus on efficient layouts and innovative design solutions,” concludes the report.

Download a free PDF version of The Macro View on Micro Units report.

Related Stories

| Jun 2, 2014

Registration is open for 2014 BUILDINGChicago/Greening the Heartland Expo and Conference

BUILDINGChicago is a major conference and trade expo serving architects, engineers, contractors, property owners, real estate developers, government officials and community organizations in the Midwest.

| Jun 2, 2014

Nonresidential construction spending expands in April

Ten of 16 nonresidential construction subsectors posted increases in spending in April, according to the latest U.S. Census Bureau data. 

| Jun 2, 2014

Parking structures group launches LEED-type program for parking garages

The Green Parking Council, an affiliate of the International Parking Institute, has launched the Green Garage Certification program, the parking industry equivalent of LEED certification.

| Jun 2, 2014

SOM unveils plans for Miami transit hub

The elevated station will be a key portal within All Aboard Florida’s rail system, the nation's only privately owned, operated, and financed rail network.

| Jun 1, 2014

Architect license upon graduation? NCARB aims to accelerate licensing process

Incorporating internship and examination requirements into university education, the regulatory organization looks to simplify and shorten the licensing process.

| May 30, 2014

MIT researchers create 'home in a box' transformable wall system for micro apartments

Dubbed CityHome, the system integrates furniture, storage, exercise equipment, lighting, office equipment, and entertainment systems into a compact wall unit. 

| May 30, 2014

Riding high: L.A., Chicago working on their version of the High Line elevated park

Cities around the U.S. are taking notice of New York's highly popular High Line elevated park system. Both Chicago and Los Angeles are currently working on High Line-like projects.

| May 30, 2014

Developer will convert Dallas' storied LTV Building into mixed-use residential tower

New Orleans-based HRI Properties recently completed the purchase of one of the most storied buildings in downtown Dallas. The developer will convert the LTV Building into a mixed-use complex, with 171 hotel rooms and 186 luxury apartments.

| May 29, 2014

Turn your pen-and-paper sketches into digital drawings in seconds with this nifty gadget [video]

Funded through Kickstarter, iSketchnote uses a smart pen to instantly digitize hand-written notes and drawings.

| May 29, 2014

7 cost-effective ways to make U.S. infrastructure more resilient

Moving critical elements to higher ground and designing for longer lifespans are just some of the ways cities and governments can make infrastructure more resilient to natural disasters and climate change, writes Richard Cavallaro, President of Skanska USA Civil.

boombox1
boombox2
native1

More In Category


Urban Planning

Bridging the gap: How early architect involvement can revolutionize a city’s capital improvement plans

Capital Improvement Plans (CIPs) typically span three to five years and outline future city projects and their costs. While they set the stage, the design and construction of these projects often extend beyond the CIP window, leading to a disconnect between the initial budget and evolving project scope. This can result in financial shortfalls, forcing cities to cut back on critical project features.



Libraries

Reasons to reinvent the Midcentury academic library

DLR Group's Interior Design Leader Gretchen Holy, Assoc. IIDA, shares the idea that a designer's responsibility to embrace a library’s history, respect its past, and create an environment that will serve student populations for the next 100 years.

halfpage1

Most Popular Content

  1. 2021 Giants 400 Report
  2. Top 150 Architecture Firms for 2019
  3. 13 projects that represent the future of affordable housing
  4. Sagrada Familia completion date pushed back due to coronavirus
  5. Top 160 Architecture Firms 2021