Big Demand for Micro-Housing?

Micro-housing has always been a practical option when it comes to affordability and space efficiency, but lately, the demand has been rising, especially for micro-apartments measuring less than 441 square feet. 

In many markets nationwide where the costs of living and housing are increasing, renters can call micro apartments home for half the price of traditional apartments, according to StorageCafe. In some cities, traditional apartments cost up to 86% more than micro-units. 

In 2018, the percentage of new rental housing that qualified as micro-housing was 1.6%, increasing to 2.0% in 2019 and 2.3% in 2020. After the peak of the pandemic, that number went down to 2.1%. However, since 2021, it has hovered around 2.4-2.5%. 

While the micro-housing movement is picking up more in coastal cities and cities to the West, StorageCafe’s analysis of 100 major cities found that Philadelphia ranked no. 10 on the list of cities most embracing small spaces.  

According to their most recent data, Philly’s share of micro-housing units was 6.8%. Additionally, the city’s micro-housing benchmark was 423 square feet, and the smallest unit size was only 200 square feet. 

In comparison, Pittsburgh ranked no. 38, with a 3.0% share of micro-housing units, a micro-housing benchmark maximum of 423 square feet and a smallest unit size of 185 square feet. 

Nationwide, micro-housing can appeal to young professionals, empty nesters, environmentally conscious urban residents and those looking to save money while staying within busy metro areas. 

The top five cities embracing micro-housing are: 

1. San Francisco (14.7% share of micro-housing units) 
2. Seattle (12.0%)
3. Honolulu (11.6%) 
4. Portland (10.7%) 
5. Minneapolis (10.4%)