After facing scarcity and skyrocketing rental costs, Denver area renters are getting a bit of a break. Not only has construction finally caught up to demand in downtown, but real estate developers are now offering some cheaper options for renters. According to The Denver Post, several developers are constructing buildings that feature micro-apartments, or what most people would refer to as studio apartments.
Less parking but closer to transportation options
These apartments are marketed toward renters who are more concerned about location and less about square footage. Many of these new buildings offer fewer parking options, but are more centrally located, making public transportation, bike commuting and rideshare options easier to access.
Eliminating some amenities like a parking garage and a heated pool also drives the costs down on the new buildings. For Denver renters who do not need a lot of space, these micro-apartments offer much needed affordable options. Particularly after Denver saw the fourth fastest rent increase in the country over the last ten years, with prices spiking 46.9 percent from 2010 to 2017.
Micro-apartments offer below-average rent options
At Ride at Rino, the bottom tier of pricing is $1,189 per month, with the smallest studio measuring in at 369 square feet. At the end of 2018, the average rent in Denver was $1,456, which makes these studio apartments far below the market average.
Other developers are offering even smaller spaces. One has two buildings with studios ranging from 288 to 380 square feet. Rent starts at just $985 a month at those buildings.
These studio spaces provide options for "the missing middle." In other words, middle-class people who cannot afford luxury apartments, but make too much money to qualify for subsidized living.
Smaller apartments attractive to millennials
Developers also believe these spaces are particularly appealing to millennials, who are less focused on owning a lot of stuff. Millennials spend more time going out, and cheaper apartment living leaves them more money to get out and do things.
For commercial investors, the micro-apartment model may provide new opportunities for growth. If you are an investor looking to buy land or property, you want to ensure you protect your future investment. O'Brien Legal helps protect commercial real estate buyers by reviewing purchase agreements, closing documents and performing due diligence.