NYC Apartments Get Smaller: “Micro-Unit” Apartment Buildings Proposed by Bloomberg

Just when you thought that apartments in New York City couldn’t get any smaller, the mayor decides to seek proposals for the design of a “micro-unit” apartment.  The idea is to construct buildings that have apartments measuring 275-300 square feet, an amount smaller than what is allowed by current regulations.   The first neighborhood where the mayor will waive zoning regulatoins is in Kips Bay, according to Bloomberg.

The purpose for constructing smaller apartments is to battle the supply issue with studio and one-bedroom apartments.  According to the Department of Housing and Preservation, New York City only has 1 million studio and one-bedroom apartments.  In the past year, however, rental prices for studio apartments have increased 4.3% to $2,065 per month and for one-bedrooms 4.8% to $2,810 per month.  The goal with these “micro-units” is to create 165,000 new units by the end of 2014.  Hopefully the increased supply of the “micro-units” will lower prices.

In the meantime, the sales market for studios and one-bedrooms is on the rise.  Given that the affordability of a studio or one-bedroom has become more difficult, many New Yorkers would rather buy than rent.  If you are looking for a studio or one-bedroom, contact NY2 so we can help you with this very important decision.

Click here for the full story on the development of “micro-units.”