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  • jerry woods


Small is big for some real estate developers. Micro-units have become more popular as a development tool to combat overpriced housing, overcrowding, and transient work/housing relationships. Even during the Covid Pandemic where "more space" was widely viewed as a bigger priority in housing decisions, micro-units were still gaining popularity.

Micro-units are typically one-room residential units usually about 200sq ft. The trend has gained traction for more than a decade now. Because of rapid rental-rate increases, especially in metro areas once considered affordable, many believe building small, efficient studios (micro-units) is an innovative solution for affordable workforce housing. Micro-units provide a way for young professionals to have their own apartment for half the price. Developers are actively looking for more sites, particularly in major markets including; NY, DC, Chicago, and LA.

Other fast-growing secondary markets include Sun Belt markets like Fort Worth, Texas; Nashville, Tennessee; and Asheville, North Carolina.

Most micro-unit projects are built with no parking, instead targeting areas near transit lines and within walkable neighborhoods allowing for other development projects. Not having parking also significantly reduces the cost of development. Typical rents for micro-units average $1,000 per month, including furnishings and utilities.

Many developer’s lobbying organizations are saying if municipalities want to have more affordable workhouse housing, they should allow developers to build product types that tenants desire.

The trend is also spreading by developers converting old hotels into residential rental units. In 2022 the trend looks to only become more of a priority for many municipalities. Contact our team of experts at to help build your next micro-unit development.

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