Fast Company, the magazine of hip modern techies, wrote that “apartments are about to get smaller. That’s a good thing.” Usually, if Fast Company says it, it must be true. But in this case, not so much.
Headlines can be deceptive. While it seems true that normal apartments are no longer the sweeping, multi-bedroom, high ceiling mansions seen in old movies, or even Woody Allen movies, I don’t know if they are really getting smaller, on their own. But the headline is attractive, and I looked further.
Yes, there was a financial core to the argument. If people (tenants) can be persuaded that all that space is just wasted, then developers can squeeze in more units and, voila! More money. If developers are really going to charge less rent for these smaller apartments, then, someone just grew a conscience. Most likely, the rents will be the lowest on the hierarchy of rents for the building or development, as it would not make sense otherwise. But, in reality, if you make a serious comparison of rents of newly built smaller apartments, they will probably be more than rents of older smaller apartments. That is the way of the dollar. Even though real estate prices evolve all over the place, depending on so many factors, it is impossible to list them, one thing is as immutable as gravity. The smallest in the group will have to be the cheapest in the same group. However, if you step out and compare different groups, well, there’s the trick!
The original article appears on the Fast Company website at https://www.fastcompany.com/90619946