Smaller apartments are flooding the market
Driving the news: New apartments in 2022 measured 887 square feet on average, a 30-square-foot drop from a year earlier, per a new report from listing service RentCafe.
- That sharp decrease was fueled in part by more studios and one-bedroom apartments entering the market, researchers found.
The big picture: Nationwide, newly built apartments shed 54 square feet on average since 2013, per the report.
The Seattle area posted the smallest newer apartments at 659 square feet, 26% smaller than the national average.
- The report analyzed the 100 U.S. metro areas with the most high-density units.
Flashback: In 2020 and 2021, demand for more space resulted in larger unit configurations, RentCafe analyst Adina Dragos tells Axios.
- "Fast forward to 2022, the demand for more apartments prompted developers to accommodate more units in their projects," Dragos says.
- Case in point: 57% of apartments completed last year were small units.
What we're watching: Apartments under construction. As the market keeps fluctuating post-pandemic, their size could signal whether the trend of less spacious rentals will stick.