Investors Bet Tiny Micro Apts. Can Yield Outsized Returns via CoStar Group

In keeping with the current 'small can be beautiful' trend in corporate office space and storefronts, studio micro apartment units are getting a long look from developers and investors hoping to maximize returns in several of the nation's most heated multifamily markets.

From Boston, New York City and Washington, D.C., to San Francisco and Southern California, builders are proposing new apartment projects with significant mixes of ultra-small units measuring as little as 220 square feet -- smaller than some single-family residential kitchens and bathrooms and an average of 40% smaller than the average studio apartment.

Driving the apartment market trend, as always, is shifting demographics. Analysts have noted, especially since the recession, that many of those in the Millennial/Y Generation favor smaller, more affordable apartments or condominiums near the downtown urban core.

Read more...Investors Bet Tiny Micro Apts. Can Yield Outsized Returns - CoStar Group