Our Financial System Favors Large-Scale Development…but at What Cost?
Upzoned
Balancing apartment unit sizes for better financial returns
The key challenge in new developments is the tendency to offer small apartment units like studios and one-bedrooms over larger units due to financial reasons. Building smaller units generates higher rent per square foot compared to larger units, leading to better financial returns. This shift in construction reflects the market demand for single resident households and the necessity to cater to this growing segment efficiently to maximize profits for investors.
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