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The average size of new apartments in the U.S. registered the largest Y/Y decline in 2022 as more studios and one-bedroom units entered the market, according to rental portal RentCafe.
Average apartment size in 2022 stood at 887 sq. ft. vs. 917 sq. ft. a year earlier, the portal said, using data from RentCafe’s sister company Yardi Matrix. That marks a 54 sq.-ft. drop from 10 years ago.
This follows two straight years of increases in average apartment size, during 2020 and 2021, when developers adjusted floorplans to accommodate home offices amid the pandemic.
“With one of the highest levels of construction in half a century, the year was marked by the need for more housing across the country,” RentCafe noted.
The share of studios and one-bedroom units reached a historic high of 57% of total apartments built last year.
The decline in apartment sizes comes as rent price increases are slowly decelerating, according to January’s Zumper National Rent Report. The national index for one-bedroom rentals fell by 0.3% over the the previous month to $1,492. Meanwhile, the national index for two-bedroom apartments were flat during January, it said.
The South topped the list in terms of average apartment size in 2022, at 993 sq. ft. But renters in the Pacific Northwest had the least amount of space – at just 776 sq. ft., according to RentCafe’s analysis.
In terms of cities, Tallahassee, Florida, had the largest apartments last year at 1,182 sq. ft., offering 295 extra sq. ft. compared to the national average.
Meanwhile, Seattle offered the smallest apartments in 2022, at 659 sq. ft. Washington’s tech hub registered a 5% decline in apartment size when compared to 10 years ago.
Apartment REITs include: Equity Residential (EQR), Independence Realty Trust (IRT), AvalonBay Communities (AVB), Camden Property Trust (CPT), and Apartment Income REIT (AIRC).
Earlier, new home sales unexpectedly surged in January.