Supersize Apartments Are Back in Demand

Apartment sizes are getting bigger across the U.S., just as more people are looking for additional space while spending more time working from home.

In 36% of U.S. cities, apartments under construction are larger on average than those built over the previous five years, according to a report from RENTCafé, a nationwide apartment-search website. Units in 33 of the 92 cities studied rose nearly 50 square feet on average, the report said.

The demand for larger units follows several years when apartments were shrinking in size, in part because smaller units are more profitable for property owners. In dense urban areas and around universities, many developers continue to build smaller apartments to offer more of them and meet high rental demand, according to Yardi Matrix, a real-estate market-intelligence firm that provided data for the RENTCafé report.

But the percentage of bigger new apartments is the highest it has been in five years, reflecting recent tenant preferences, said Doug Ressler, Yardi Matrix’s manager of business intelligence. Older millennials have reached the typical homebuying age, but many are unable to find a home they can afford. Instead, they are looking to rent larger apartments for themselves and their families, Mr. Ressler said.

While the urge to upsize apartments predated the Covid-19 pandemic, some real-estate executives suggest it will continue as the health crisis puts a new premium on space. Developers say they are building units that offer more space to work and relax in, as a way to accommodate residents who are moving out of high-density cities and into suburban areas across the country.

“We’re doing little things like adding built-in offices and areas where people can work from home in nooks and crannies,” said Michael Van Der Poel, founding partner of Asia Capital Real Estate, a private-equity firm that specializes in multifamily-housing development and investment.

J. David Heller, chief executive of the NRP Group, a developer of multifamily buildings, said his firm is offering a den that can be used as a home office in both its one- and two-bedroom apartment plans.

NRP, which develops communities in St. Petersburg, Fla., and San Antonio, among other cities, has expanded a number of its floor plans by 30 to 50 square feet, Mr. Heller said.

Some multifamily developers in northern New Jersey are taking a similar approach, replacing one-bedroom apartments with one-bedrooms plus a den, said Brian Gretkowski, president of Sparrow Asset Management.

The extra space that U.S. developers are offering is incremental, but “in a 600-square-foot apartment, 50 square feet adds up,” said Justin Brown, president and CEO of Skender, a Chicago-based construction firm.

RENTCafé’s report, which it released in early June, analyzed apartment data in the 92 U.S. cities where floor-plan-size information was available as of last month for projects under construction.

One-, two- and three-bedroom apartments are increasing in size in almost half of the cities RENTCafé analyzed. Those units are adding to their average size 28 square feet, 39 square feet and 105 square feet, respectively, according to the report.

Everett, Wash., is leading the trend. Developers there are building apartments to be 267 square feet larger than those built in the past five years, the report said. Other leaders include Kirkland, Wash., with 211 additional square feet, followed by Scottsdale, Ariz., with 208 more square feet, on average.

The report didn’t address whether the shift to add space will affect rent prices. Not all developers are convinced the trend will stick, citing affordability challenges.

“We’re unsure if long term, average unit sizes will increase because that would ultimately mean higher rents,” said Omar Rihani, head of multifamily development at Project Management Advisors.

A breathtaking view and a lush quarter-acre block are high up the wish list with any lifestyle property, but this contemporary Buderim residence takes things to another level.

Designed and built by owners Stu and Nat Faid, the Sunshine Coast home reflects their vision and incredible attention to detail.

As an architect and designer, Nat believes a prime position deserves an incredible project.

“The heart of the house is undoubtedly the living area and expansive deck. At over 100sq m and elevated more than 6m above the ground, you literally feel like you’re floating. We love how the views stretch from the Glass House Mountains along the coastline to Mooloolaba. Across the ocean, you can even see the sandbanks on Moreton Island,” she says.

While the views and the 1024sq m land parcel make their mark, it’s the suspended 12m heated shipping container swimming pool that’s making waves locally.

“When people arrive, the first thing they do is look up,” Nat adds.

After purchasing the property in 2021, the pair knew the existing house wouldn’t live up to their family of four, but they fell in love with the location and outlook so decided to adapt.

Initially, the pool’s unique design was simply a reaction to an everyday Queensland problem, but ultimately became a feature.

“The pool was at first a product of practicality. We wanted to be able to watch the kids in the pool from the house, but to do that required elevating the pool more than six meters off the ground,” Stu says.

“When we looked at the engineering required, it conflicted with our minimal-touch ethos in preserving the land and the visual aesthetic of the finished design. What followed was a lot of searching for a solution, and as luck would have it, the answer was almost on our doorstep.”

Shipping Container Pools seemed like a no-brainer answer to the pool problem. Having moved internationally multiple times, the couple saw an opportunity to weave their personal story into the fabric of their new home.

“The opportunity to incorporate a nod to that chapter of our life into the build was too good to miss,” he says.

“It also unashamedly reinforces the origins of the pool construction, which ties into the rest of the design in the house. Throughout the home, we have embraced where the old meets the new, we have not tried to blend, cover or hide the origins of the home, we have chosen instead to make sure the evolution of the house is clear to see.”

The Faids’ global family journey is evident throughout the home, from the grand Middle Eastern entry doors sourced from Dubai where the couple once lived, to the remarkable views from the Glass House Mountains to Mooloolaba.

Created to enjoy every season, the house has a space for all eventualities with an open plan living area spilling out to the full-width deck and pool, a sleek kitchen with an Ilve integrated fridge and freezer, Bosch ovens, an induction cooktop, built-in coffee machine and microwave, two dishwashers, filtered water and a butler’s pantry.

Four spacious bedrooms each have built-ins, the main features a large ensuite with twin vanities and two more bedrooms share a“Jack and Jill” style bathroom. There is also a third full bathroom.

The Buderim home is 12.5kms from Mooloolaba and the Mooloolaba River National Park with the Sunshine Coast Airport 13.5kms to the north, however Stu adds that there is rarely a reason to leave.

“It would be fair to say that apart from popping down the hill to go to the beach, we often go days without ever leaving the village. It’s really is a wonderful spot.”

Packed with mod cons, the Buderim home also features six-zone ducted air-conditioning, engineered oak floors and a double-sided Stuv wood-burning fireplace, a mudroom, heated floors and sensor lights in the bathrooms. There is also a private elevator, solar power and battery, as well as landscaped gardens and a large lock up garage and shed.

The property at 10 Orient Court, Buderim is listed with Zoe Byrne and Greg Ward from Ray White Buderim and will go to auction on September 22 at 9am at Mercedes-Benz Sunshine Coast, 65 Maroochy Blvd, Maroochydore.

Supersize Apartments Are Back in Demand

Developers across U.S. try to meet millennials’ needs and accommodate the shift to remote work.

This sky-high home on the Sunshine Coast with iconic shipping container pool is a testament to modern design and engineering.