Statecraft Why We Don't Build Apartments for Families
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Oct 8, 2025 Bobby Fijan, co-founder of the American Housing Corporation, dives into the critical issue of family housing in urban areas. He shares insights from his research on why modern apartments often cater more to roommates than families. Bobby reveals how the financial crisis led to smaller units and why families prioritize extra bedrooms above amenities like yards. He discusses potential zoning solutions and argues for returning to proven pre-war designs. His passion to adapt cities for families could be the key to keeping them from moving to the suburbs.
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Why Apartments Boomed After The Recession
- Post-2008 lending rules and low interest rates pushed developers toward apartments over condos because apartments valued as cash-flow streams were easier to finance.
- Agency lending and low cap rates made apartment development more attractive nationwide, inflating valuations.
Unit Mix, Not Mystery, Explains Shrinking Apartments
- The average new apartment shrank because developers now build many studios and small one-bedrooms, changing the unit mix.
- A higher share of 400–500 sq ft studios pulls down the overall average unit size across markets.
Two-Bedrooms Built For Roommates
- Many two-bedrooms are designed for roommates with equal bedrooms, en suite bathrooms, and big closets rather than for parents and children.
- That roommate-oriented design maximizes rent per square foot given studio-dominated markets.