In Manhattan, many luxury buyers are opting for smaller spaces to save on cost.

In order to gain entry into some of the most expensive neighborhoods in America’s largest cities, luxury-level buyers are increasingly buying or renting studio units, usually 699 square feet or less, and dressing them up with luxury amenities.

The key to creating the “designer shoebox”, according to Alina Dizik of The Wall Street Journal, is to take advantage of every inch of the space, as well as multi-use furnishings. Luxury studio apartment residents have added storage spaces that double as dividing walls, murphy beds, fold-out tables, and even custom-built lofts.

Developers marketing studios in large condo buildings say buyers are less focused on hosting dinner parties inside their units, because the buildings offer plenty of communal spaces for socializing. “Studios are always in demand because of the price point,” says Kipton Cronkite, a real-estate agent at Douglas Elliman, a New York brokerage. Square footage “is not so much of a concern.”

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