The real estate world across the U.S. has gone through many changes in the last 10 years. Against this backdrop, the latest study presented comparative results on how apartment sizes have decreased in recent years. Out of the 100 largest cities across the U.S., Detroit demonstrated a 20% decrease in apartment size.
Highlights
- A latest RentCafe study highlighted that Detroit witnessed the third biggest dip in apartment size in the past decade.
- Trends reflected in the analysis showed that Detroit’s developers are inclined to build smaller units
- Only 11% of multifamily units had three or more apartments in the city by 2024
Detroit Apartments are 20% Smaller than in the Previous Decade
Detroit demonstrates a 20% decrease in apartment size (Source: @rentcafe.com)
A recent RentCafe analysis threw light on changes in apartment size in the 100 largest U.S. cities. The findings of the rental listing website were based on a comparison of the 10-year change in new apartments’ average size from 2005-2014 and 2015-2024. The buildings of the selected U.S. cities in the study had at least 50 rental units.
Detroit showed a 20% decrease in the average size of new apartments this decade as compared to that in 2005-2014. New apartments in the city that were built from 2015 to 2024 had an average size of 728 sq. ft. This was 184 sq. ft. less than the previous decade (2005-2014). According to RentCafe, this was the third biggest dip in apartment size.
The findings were based on an analysis of multifamily developments having 50 units or more.
It was observed that developers across U.S. cities, including Detroit, are emphasizing smaller floor plans with more one-bedroom and studio apartments. The RentCafe analysis cited Detroit’s recent residential project at Water Square. Almost all the 500 units of the luxe development are either one-bedrooms or studios.
Single-Family Houses Propel the Size Decrease
The latest study by the rental listing website highlighted that two-thirds of Detroit’s occupied houses are owned by single families. This is why rentals are smaller in the city.
As of 2021, 62% of Detroit’s multifamily rentals in buildings with more than 10 units were one-bedroom apartments. On the other hand, 59% of single-family homes were 3-bedroom apartments.
Since 2018, about 71% of units across Detroit buildings are either studio or one-bedroom apartments. Whereas, only 11% of multifamily units had three or more apartments by 2024.
Developers to Continue with New Trend
Recent multifamily projects across Detroit have been affordable housing initiatives. Due to struggles with low rental rates, developers have come up with the idea of making smaller units to either sell more units or get adequate rents.
Detroit-based developers are focused on continuing with the concept of smaller homes by catering to professionals/students who require smaller spaces than large families.
