
Once upon a time, apartment unit square footage was fairly consistent. But that seems to be changing. A recent report from RentCafe noted two trends when it came to living space:
So, what gives?
“This trend is particularly interesting because it reflects lifestyle changes across different demographic groups — mostly influenced by the rise of flexible or remote work,” RentCafe research analyst and report author Adina Dragos told ApartmentBuildings.com. “Coupled with rising housing costs and delayed homeownership among millennials, the data offers an overall picture of these changes.”
RentCafe’s methodology was to examine apartment size across the largest 100 renter hubs in the U.S. as of February 2025. The researchers focused on cities with the largest and smallest apartment sizes and cities experiencing significant gains in square feet over the last decade, compared to the previous ten years.
The report noted that the increase in the average apartment size provides “renters fresh options for more spacious living.” At the same time, “the shift toward smaller apartment units may reflect developers’ efforts to meet Gen Z’s demand for flexibility and multipurpose spaces,” Dragos said.
She added that Gen Zers are just launching their careers in big job hubs like Boston, Austin and Seattle, so smaller spaces with smart technology and adaptability appeal to this age cohort as they settle on career options.
Meanwhile, in gateway cities and locations like suburban Atlanta, millennials are delaying homeownership but need more space to raise families. Here, “developers are building larger apartments to meet the need for more livable spaces, even in dense urban areas,” Dragos said.
But it’s not just lifestyle demand driving unit sizes. Dragos explained that the high cost of development and market unpredictability influence developers’ decisions pertaining to large versus small. Dragos cautioned that the current situation isn’t set in stone. “Market dynamics will change rapidly, and the coming years will be key to figuring out whether it’s a short-term inflection point or part of a longer-term pattern,” she added.
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