Where Smaller is More Marketable

Unlike the message of an annoying commercial, bigger may not be better in the real estate market. Residential developers in Washington D.C. have found that millennials like small studios, or micro-units, provided the spaces are well designed.

2 minute read

July 23, 2014, 7:00 AM PDT

By Irvin Dawid


We've posted articles on micro-apartments located in BostonManhattan, San Francisco, and even in smaller cities including Berkeley, Calif., but this is the first for the nation's capital. Micro units have come to D.C. and they are proving profitable for developers and affordable for tenants, reports Liz Essley Whyte for The Washington Post's Express. 

Inherently more affordable than larger units, what makes them successful are well-designed floor plans and well-used common spaces. Whyte focuses on The Harper on 14th Street which rents studios, one bedrooms and jr. one bedrooms, but as of July 22, there are no vacancies.

To be classified as a micro unit, it need not be truly small, according to Whyte.

Though definitions of micro-units vary, most real estate experts consider a micro-unit to be any apartment less than 500 square feet that’s designed for efficiency.

Affordability is key to making the apartments attractive to millennials, luring them away from "the roommate phenomenon," writes Whyte.  "If millennials are teaming up to split two- or three- bedroom units in nice buildings, why not just offer smaller spaces so that they can afford to live on their own?" she asks.

"The other big hook for tenants: well-designed floor plans," she adds. "Having a carefully laid out space is key to making a tiny rental work."

Vornado president Mitchell Schear adds one more feature that mitigates the small size of the individual units.

"We’re making places for millennials,” says Schear. “You’ll have a small space of your own, but there will be small spaces in common that people will share. … You have this feeling of openness and sharing and community.”

Indeed, a tenant at The Harper "found that the tight spaces in studios lend themselves to a tight-knit community in the common areas, making renters less likely to worry about their small square footage."

Whyte also writes about "The Wharf (690 Water St. SW), a new project planned for D.C.’s Southwest Waterfront expected to open in 2017."

At one residential building there, about 170 of the 500 apartments will be micro-units. The Wharf’s developers hope those smaller apartments will appeal to younger renters who want “to live in a high-energy environment” without a roommate, says associate project director Matthew Steenhoek.

The affordability of micro-units has not gone unnoticed by urban think tanks like San Francisco's SPUR. Calling buildings with these small units and reduced parking requirements "affordable by design", they see them as providing a valuable way to supplement dwindling government and developer-imposed subsidies to provide below market rate rentals.

Friday, July 18, 2014 in The Washington Post

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Get top-rated, practical training

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

April 30, 2025 - Diana Ionescu

Close-up on Canadian flag with Canada Parliament building blurred in background.

Canada vs. Kamala: Whose Liberal Housing Platform Comes Out on Top?

As Canada votes for a new Prime Minister, what can America learn from the leading liberal candidate of its neighbor to the north?

April 28, 2025 - Benjamin Schneider

Hot air balloons rise over Downtown Boise with the State Capitol building visible amidst the high rises.

The Five Most-Changed American Cities

A ranking of population change, home values, and jobs highlights the nation’s most dynamic and most stagnant regions.

April 23, 2025 - GoodMigrations

People biking along beach path with moored ship in San Diego, California.

San Diego Adopts First Mobility Master Plan

The plan provides a comprehensive framework for making San Diego’s transportation network more multimodal, accessible, and sustainable.

30 minutes ago - SD News

Sleeping in Public

Housing, Supportive Service Providers Brace for Federal Cuts

Organizations that provide housing assistance are tightening their purse strings and making plans for maintaining operations if federal funding dries up.

1 hour ago - KSL

Conductor walks down platform next to Amtrak train at station in San Jose, California.

Op-Ed: Why an Effective Passenger Rail Network Needs Government Involvement

An outdated rail network that privileges freight won’t be fixed by privatizing Amtrak.

2 hours ago - Streetsblog USA

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.

Planning for Universal Design

Learn the tools for implementing Universal Design in planning regulations.