A micro apartment is a smaller-than-average rental unit that typically measures less than 350 square feet. Market Stadium recently conducted analysis to identify where in the US we need to build these micro-unit apartments more and why.
Residents may continue to gravitate towards these areas due to their prospects of remaining competitive in the marketplace 10 to 20 years into the future. Moreover, the abundance of amenities in cities can offset the need for large living spaces, as many functions can be performed outside the home. While spacious living conditions are generally desirable, the need for expansive living quarters isn't a universal requirement.
For individuals, particularly singles without a family, a smaller living space wouldn't critically impact their decision-making process. Given that less time is spent at home, larger spaces might be viewed more as a luxury rather than a necessity. This creates a demand for micro apartments, predominantly in metropolitan areas.
For further insights into this trend, the Market Stadium platform can be a valuable resource. This article will delve into three key topics: (1) Millennials with more than a bachelor's degree, (2) the rent burden on Millennials, and (3) the median square footage of studio apartments.
The aim is to identify regions where well-educated Millennials constitute a significant portion of the population and where, despite high rental burdens, the median square footage of studio apartments is larger. These regions are predicted to have a high demand for micro apartments. The underlying rationale is that these areas, given their economic and demographic characteristics, are likely to be hotspots for such housing solutions.
The unit of analysis is the county, and among the 640 counties available on Market Stadium, the study focused on 226 counties where data for the median square footage of studio apartments was available. The analysis was conducted by normalizing three factors and presenting the combined value, with the following list showcasing the top 20 counties.
Figure 1. Top 20 counties: HIGH BURDEN, LARGE STUDIO, MANY MILLENNIALS ↑ BACHELOR.
The following is the thematic map representing normalized score including (1) HIGH BURDEN, (2) LARGE STUDIO, (3) MANY MILLENNIALS ↑ BACHELOR to find the opportunistic zone for developing micro apartments.
Figure 2. Thematic map of normalized score of HIGH BURDEN, LARGE STUDIO, MANY MILLENNIALS ↑ BACHELOR.
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