Report: Micro-units growing in appeal

HERE IS a microloft featured at ARCADE PROVIDENCE. According to the Urban Land Institute, microlofts are growing in appeal. / PBN FILE PHOTO/TRACY JENKINS
HERE IS a microloft featured at ARCADE PROVIDENCE. According to the Urban Land Institute, microlofts are growing in appeal. / PBN FILE PHOTO/TRACY JENKINS

PROVIDENCE – Micro-units, typically bigger than a one-car garage, but smaller than a double, are growing in appeal, according to the Urban Land Institute.
The Washington-based organization said new research is showing that this type of housing is growing in popularity, and especially appeals to urban dwellers in high-cost markets who will trade extra space for more affordability and closer proximity to downtown neighborhoods.
“The Macro View on Micro Units” includes an analysis of more than 400 rental-apartment communities built in 2012 and 2013 in 35 U.S. metropolitan areas that experienced the highest concentration of multifamily construction during that period, as well as more than 3,500 responses to a 2014 survey of renters of both traditional apartments and micro-units, and case studies from 30 existing and 18 planned rental communities with micro-units.
Arcade Providence was one of the projects used for a case study. Arcade Providence features 48 micro-lofts and 17 micro retail spaces in the Arcade, a project that helped address Providence’s affordable housing shortage.

The report’s key findings included:

  • Micro-units are typically 350 square feet, but can range from 250 square feet to 500 square feet. Sleeping space is combined with living space, but they do have fully functional bathrooms and kitchens. Micro-unit communities emphasize amenities outside the units, such as shared communal spaces.
  • The largest market profile for micro-units is mostly young, professional singles, typically under 30 years old, earning less than $40,000, trending slightly more toward males than females.
  • Those interested in micro-units are seeking to lower rental costs (units typically rent for 20-30 percent less); they are also drawn to the trendy locations where they tend to be built and by the ability to live alone.
  • Those currently living in micro-units cited location as the top factor influencing their decision to move there, followed by price.
  • Those who are interested in switching to micro- units ranked access to a grocery store as their top priority for a neighborhood amenity, followed by restaurants and a gym. More than half were interested in multifunctional, convertible furniture.
  • Nearly one-quarter of renters surveyed who live in conventional apartments said they would be interested in a micro-unit, while 58 percent said they would not, mainly due to a lack of a separate bedroom, less storage space and less living or dining space.

“Whether this (increased development of micro-units) turns out to be a lasting phenomenon or a passing fad, micro-units have renewed the focus on efficient layouts and innovative design solutions,” the report concluded.

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