The idea of living in under 400 square feet is not desirable for everyone, however so-termed ‘micro-apartments’ offer a path to city living for aspiring professionals that does not require a six-figure salary or multiple roommates.
Housing affordability continues to deteriorate in major urban centers of the U.S. This perhaps explains why interest in these undersized units is quietly gaining momentum—especially in markets where they now make up a considerable share of new construction.
The trend is most pronounced in some of the nation’s most expensive cities. Seattle leads the pack, with micro-units accounting for two-thirds of new apartment construction, followed by Boston at 56% and Newark at nearly 50%. Even in notoriously pricey New York City, more than four in ten new apartments fall into the micro category.
The movement is also spreading beyond traditional coastal hubs to places like Reno, Nevada, where 40% of new builds are micro-units—suggesting that housing affordability pressures are fuelling compact living solutions in places large and small.
This research comes from StorageCafe, which is a U.S. based self-storage search website. By taking a nationwide snap-shot, the company has found that western cities are leading the micro-housing movement, with seven of the top 10 metros leading the way in compact living. San Francisco stands out, with 15% of its rental units under 415 square feet, setting the pace in high-demand markets.
Specifically, major metros grappling with high rent costs—such as Seattle, Boston, and Newark—are leading the way with micro-apartments making up more than half of all new rental developments.
Mid-sized cities are also showing the same trajectory. In Reno, NV, undersized units now make up 40.5% of new rental construction — one of the highest shares in the country. Minneapolis, MN is also leaning into compact living: while micro-units account for 10.4% of current rentals, they’re projected to double their footprint, reaching 20% of new multifamily development.
In some cities, traditional apartments cost up to 86% more than micro-units. In places like Washington, D.C., Jersey City, and San Francisco, downsizing delivers serious savings — often cutting rent in half or more.
While coastal hubs embrace the trend, Southern and Mountain West cities resist downsizing. In contrast to their coastal counterparts, cities like Enterprise, Nevada, are resisting the downsizing trend — its smallest available rental clocks in at 735 square feet, spacious enough to fit six of Seattle’s tiniest micro-apartments with room to spare.
Going forwards, building data suggests, drawing on current construction pipelines, that this trend is expanding well beyond its traditional strongholds.
Emilia Man, Trends Analyst at StorageCafe has told Digital Journal: “As rents continue to climb, micro-apartments are emerging as a practical solution – especially for young professionals, solo renters, downsizing retirees, and budget-conscious city dwellers. These compact living spaces allow people to stay in the cities they love without stretching their budgets too thin.”
Man adds: “What’s fascinating is that micro-living isn’t just a coastal trend in places like San Francisco or New York anymore. Mid-sized cities like Minneapolis and Cleveland are embracing the movement, showing how residents across the country are adapting to the rising cost of urban living. It’s not just about shrinking your space — it’s about making smart, creative choices to keep housing affordable, while also fuelling growth in related sectors like self-storage.”
