Over the past decade, urban apartment sizes have dwindled, leaving many residents feeling cramped and longing for more space. The rise of remote work and postponed home purchases have exacerbated this issue, with people spending more time at home than ever before.

In 2022, the average size of newly built apartments in the U.S. hit a historic low, driven by developers' focus on maximizing the number of units per building to meet soaring rental demands. This trend resulted in living spaces that felt more like shoe boxes than homes, causing discomfort and dissatisfaction among renters.

However, a shift is underway. Developers are now responding to the growing demand for larger living spaces. According to a recent report from RentCafe, the average U.S. apartment built in 2023 rebounded to 916 square feet, a 27-square-foot increase from the previous year. This trend marks a return to more spacious living, catering to modern needs for comfort and flexibility.

The Evolution of Apartment Sizes

The evolution of apartment sizes in the U.S. reflects broader socio-economic trends and shifts in consumer preferences. The recent increase in average apartment size is a response to changing lifestyles and market demands, influenced by several key factors.

Historical Context

In the past, urban apartments were designed to maximize space efficiency, often at the expense of comfort. This trend reached its peak in 2022, when the average size of new apartments shrank to the smallest on record since at least 2014. Developers, driven by high rental demand and the need to optimize return on investment, prioritized the number of units over their size.

Changing Dynamics

However, the landscape began to shift as the pandemic altered work habits and living preferences. Remote work became a permanent feature for many, increasing the demand for larger living spaces that could accommodate home offices. Additionally, the postponement of home purchases due to economic uncertainties led to longer tenures in rental properties, with renters seeking more comfortable and spacious environments.

Current Trends

The report from RentCafe highlights a significant rebound in the average size of newly built apartments in 2023, rising to 916 square feet from 889 square feet in 2022. This increase can be attributed to several factors:

1. Market Demand: The demand for more spacious apartments has been a driving force behind this trend. Renters are willing to pay a premium for additional space that allows for a better quality of life, including dedicated areas for work, leisure, and storage.
2. Two- and Three-Bedroom Units: The introduction of more two- and three-bedroom units into the market has also contributed to the increase in average apartment size. These larger units cater to families and individuals who need more room to accommodate their lifestyles.
3. Developer Strategies: Developers are adjusting their strategies to meet this demand, focusing on creating more livable and attractive spaces. This includes the design of multi-functional layouts and the inclusion of amenities that enhance the overall living experience.

Implications for the Real Estate Market

The shift towards larger apartments has several implications for the real estate market:

1. Design Innovations: Developers are exploring innovative design solutions to create spacious and functional living environments. This includes open floor plans, flexible spaces that can be adapted for different uses, and the integration of outdoor areas such as balconies and terraces.
2. Market Segmentation: The trend towards larger apartments may lead to greater market segmentation. While luxury apartments with extensive amenities will continue to attract high-income renters, there will also be a focus on creating affordable larger units for middle-income households.
3. Investment Opportunities: Investors in the real estate market can capitalize on this trend by focusing on developments that offer larger living spaces. This includes both new constructions and the renovation of existing properties to increase their size and appeal.
4. Urban Planning: Urban planners and policymakers may need to revisit zoning regulations and building codes to accommodate the demand for larger apartments. This could involve increasing allowable building heights and densities in certain areas to enable the construction of more spacious units.

The Future of Urban Living

The resurgence of larger apartments is not only a nationwide trend but also resonates strongly with the ongoing reurbanization efforts in cities like Cleveland. Downtown Cleveland's residential population has surged to 112% of pre-pandemic levels, boasting approximately 21,000 residents. This growth underscores the continued demand for downtown housing, as highlighted in the Greater Downtown Housing Demand Study.

Cleveland's Residential Boom

Several projects are currently underway to meet this demand through both new construction and adaptive reuse. Notable developments include:

• The Bell: Located at 45 Erieview Plaza, this project is now leasing and offers spacious living options that cater to modern urban dwellers.
• City Club Apartments: Situated at 776 Euclid Ave, these apartments are also now leasing and contribute to the increasing average apartment size in the city.
• Ten60 Bolivar: Under construction at 1060 Bolivar Road, this project by New York-based developer SomeraRoad aims to add significant new residential units to the downtown area.

Implications for Cleveland's Real Estate Market

The reurbanization and growth of downtown Cleveland are set to create a vibrant, thriving urban core that offers spacious and comfortable living environments. This trend aligns with the broader national shift towards larger apartments and provides several key benefits:

• Economic Growth: The influx of new residents and the development of larger apartments will drive economic growth, create jobs, and enhance the overall quality of life in downtown Cleveland.
• Community Revitalization: Projects like The Bell, City Club Apartments, and Ten60 Bolivar are revitalizing underused spaces and transforming them into attractive residential areas.
• Sustainable Development: The focus on adaptive reuse and new construction that meets modern demands ensures sustainable development practices that benefit the community and the environment.

The resurgence of larger apartments in the U.S. and the ongoing reurbanization efforts in downtown Cleveland mark significant shifts in the real estate market. Developers, investors, and policymakers must adapt to these trends to meet the growing demand for spacious and comfortable urban living environments. By embracing these changes, we can create urban environments that not only meet the needs of today's renters but also enhance the overall quality of life for residents.

As we move forward, the emphasis on quality of life and flexibility in living spaces will continue to shape the future of apartment design and development, both nationally and in vibrant cities like Cleveland.

Sources:

• RentCafe Report: “Average U.S. Apartment Size Trends.”
• Axios: “Apartments are getting bigger again.”
• Downtown Cleveland Economic Development Report.

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