For Multifamily Executive, Hamilton Zanze CEO Kurt Houtkooper details the reasons for optimism about the multifamily market and his company’s plans for 2024.Read
Developers Weary of Micro Units
Micro units (under 500 square feet) may not be the trend of the future after all. While a recent Urban Land Institute (ULI) report showed that micro units were top occupancy performers in recently completed developments of early 2014, they represent only 2.7% of new supply from 2012-2013.
Traditionally, micro units appeal to solo dwellers, particularly in urban core areas where rent can be expensive. However, developers seem to be shying away from micro-sized floor plans in order to appeal to demographics that can afford larger spaces, such as successful Millennials and young couples with dual incomes. Micro units also face headwinds from some cities—Seattle’s city council is considering placing restrictions on how and where micro units can be built.
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