The West leads the country with micro housing shares.
The rhyme of a child’s nursery in the 18th century, “there was an old lady who lived in shoes” – as a micro-housing (“shoebox apartment”), can be not too far from today’s reality, especially in the West, as the proportions increase in double digits.
Storagecafe analyst Doug Ressler told the Epoch Times that increasing the cost of homes and rentals, especially in America’s most expensive cities, is driving the creation of these alternative living spaces.
“These units rent for about half the price of traditional apartments and attract a lot of young people,” he said.
“Many developments are located near university campuses and are sold not only to students but to young professionals who are trying to save money to ultimately buy a home.”
The wrestler said that while some renters may be the main reason for choosing micro housing, other factors include the fact that these miniature apartments are usually within walking distance of shops, restaurants, entertainment, parks and other amenities.
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“These projects are a mixture of new construction and adaptive reuse, including conversions to office buildings and former schools,” Wrestler said. He added that this type of housing is also attractive to seniors and others living with fixed income, offering a low rent and a low maintenance lifestyle with convenient access to amenities and services.
One notable new project is CitySpace Studio, a 39-unit micro-housing development in Berkeley, California, currently close to completion. The home was built in a 5,000 square foot lot and was originally zoned for a detached house. Each unit is only 160 square feet.
The building features a furnished studio, stainless steel appliances, a community kitchen, laundry and social spaces, private courtyards and community spaces, LED lighting, on-site management and 24-hour security.
This latest project, developed by panorama profits, has yet to promote rents. However, a similar development in Berkeley, which offers a 330-square-foot studio apartment, rents for $2,095 a month.
“Neighborhoods near universities and hospitals tend to order higher property values and rental fees due to this consistent influx of residents,” Wrestler said. “For developers, this leads to low-risk investments with strong long-term appeal.”
Provided by Storagecafe
Regionally, the West leads the country with its share of micro-housing, followed by the Midwest and Northeast.
Seattle has also emerged as a national leader in micro housing, with these units making up about 12% of the city’s total housing inventory. Additionally, approximately 66% of rental units currently under construction fall into the micro housing category.
“The land is at premium along coastal cities, so there’s a higher chance that you’ll find this kind of home there,” Wrestler said. “I think there is a possibility that demand for micro housings may start to increase, especially in these areas.”
Minneapolis, Minnesota, leads the Midwest in micro-housing, currently accounting for 10.4% of the city’s gross rental stock, the region’s highest share. Chicago, Illinois also participates. There, micro-units are rented for almost half the cost of a traditional apartment.
In the northeastern part of Newark, New Jersey, it stands out by having one of the biggest rent gaps between microunits and traditional apartments. Renters there can expect to pay about 50% less for the microunit.
Top State for Small Houses
HomeGnome is also recently Ranking The upper state of a small house, usually a freestanding structure of less than 400 square feet. Texas tops the list, followed by Colorado, Tennessee, Oregon and Georgia. California was also ranked in the top 10. Texas, Colorado and Virginia currently offer more than 14 small home communities, while Iowa, Texas and Kentucky are gaining attention as hotspots for “small” living from the grid. Georgia holds four small house festivals a year. There are all other states.
“As we are in a housing crisis, all sorts of progressive housing can help meet our needs. Many cities across the country are legalizing accessory housing units (ADUs) to support affordable labor housing.”
“But we need to do more. I’ve never heard of a small home ruining the housing market. Either way, we need more.”
Housing in the box
Enter Boxabl, a Las Vegas-based company dedicated to solving the world’s housing crisis by offering a brand new home literally folded and fully equipped with appliances. The most popular model, the Casita, is a 361-square-foot modular home with a living area, kitchen, bathroom and bedroom. It also includes utility hookups for water, electricity, sewage and the internet. Studio Casita is currently on sale for just $60,000.
Casita interior living and sleeping area. Provided by Boxabl
With its initial prototype orders from SpaceX and subsequent orders for 156 Casita homes from the Department of Defense, Boxabl continues to streamline its manufacturing and ordering process to deliver Casita more efficiently.
The company plans to expand its operations in Las Vegas and upgrade its inventory to offer prefabricated 1- and 2-bedroom casitas, townhomes, single-family homes and even apartment buildings.
Boxabl Client Relations Manager Alexis Bulloch told the Epoch Times that since they began production of these units in 2021, they have received more than 190,000 inquiries.
“We’ve received requests for information from individuals looking for affordable housing, municipalities and developers who want to plan for casita communities,” she said. “Our goal is to resolve the housing crisis on a scale not just here in the US, but ultimately on an international scale.”
According to Zillow, the US currently has a shortage of around 4.5 million homes.
“These casitas are rolled out in about an hour, and it takes nearly 24 hours to fully install, including bathroom and kitchen appliances,” Bulloch says.
The home is made up of steel, concrete and expanded polystyrene foam, providing a durable, structural sound unit. They require minimal basic work, but potential owners must ensure proper zoning allowances and arrange electricity and plumbing.
To date, 600 homes have been built and are available in 15 states. Boxabl also offers the “Baby Box,” a 120-square-foot RV unit that sells for $19,999. Includes kitchen, bathroom, dining area, drawer beds, mini splits for heating and cooling, and storage space.
The company is also partnering with Fontana’s Bethel Ame Church to deliver affordable, advanced homes at 27 Casitas. The project is the first in California under the state’s Affordable Faith Land Act.
Additionally, the company has secured a contract with Horizons, the National Hospitality Group, offering 60 casitas to new resort locations in South Carolina and California.
