Roger Vincent writes, "The smaller units make most sense in places like Santa Monica, where the cost of land is high and there is an abundance of jobs and commerce. That means people want to live there, but may not be able to afford the rents for traditional apartments.
For developers, small is beautiful because they can build more units per square foot of land."
The smaller spaces are made attractive to single professionals with high-quality finishes. The model is working: the 165-unit Olympic Studios in Santa Monica, with units "the size of a recreational vehicle", has a waiting list that has been full since 2008.