While single-family homes seem to be ever-expanding in size, new data fro RCLCO reveals apartment units are following the opposite trend.
The average apartment unit size between 2010 to 2016 at 917 square feet was 7% smaller than the average size of apartment units from 2000 to 2009 at 988 squre feet. Developers have been recently following millennials' desires for more active lifestyles by reducing apartment size and increasing on-site amenities in central locations. It could also be a matter of affordability, as rents have risen almost twice as fast as wages, more renters can only afford smaller places.
RCLCO also found that the decrease could simply be most attributable to the increase in studio and one-bedrooms becoming available over two- and three-bedroom units - another shift likely for targeting young millennials.
The question, then, is whether smaller apartments will make future home buyers prefer smaller homes, or will the close quarters send them running for larger homes?