Apartments under construction are larger than those built over the previous five years, increasing by 48 square feet on average, according to a report from RENTCafé. The demand for larger units follows several years when apartments were shrinking in size, in part because smaller units are more profitable.
Live, Work, Play: While the urge to upsize apartments predated the pandemic, some developers say they are building units that offer more space for tenants to work and relax. J. David Heller’s NRP Group is now offering a den that can be used as a home office in both its one- and two-bedroom apartment plans, according to the Wall Street Journal.
Dig Deeper: The report analyzed all buildings under construction and identified projects in 33 cities out of 92, which are already expanding floorplans to build more spacious apartments compared to what they built in the past five years. On average, the space added ranges from 267 extra square feet in Everett, WA to one more square foot in West Palm Beach, FL.
Worth Noting: Not all developers are convinced the trend will stick because larger unit sizes means higher rents.
Heard on the Street: ACRE’s Michael Van Der Poel told WSJ: “We’re doing little things like adding built-in offices and areas where people can work from home in nooks and crannies.” [WSJ]
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