Comment by hylaride
7 hours ago
The building codes in most jurisdictions wouldn't even allow such a thing, whether there would be demand for it or not. But the lengths people are willing to go for small apartments in top tier cities (NYC, especially) show that there is be demand in the right situations. Of course, the whole point of living in Manhattan is to not spend time at home.
But there are interesting experiments going on. Where I live (Toronto) has had a huge build-out of small ~4-500sqf bachelors that were hoovered up by flippers and mom-n-pop landlords. At the peak of the boom, they were selling for ridiculous prices ($800K+) and the poor build quality of everything from elevators (of which there often weren't enough, resulting in lineups and long waits) to water pipes that burst meant that savvy prospective owners stay clear.
There's a correction happening, but people don't want to unload their "investments" at below what they cost and since mortgages are recourse people can't just walk away.
In theory there should be demand for these units from the young, corporate owners, 2nd homes in the city, etc. But the prices have just not come down enough to make any of those worthwhile.
Right, I should have been clear that my assertion was not that there is lack of demand. My assertion is we don't build and offer this style. Outside of school dormitories. And even then, there is still a preference for bigger.
Would love to see more on the correction you are referencing. So much of the discourse I see focusing on "starter homes." Which, these are not that.
In BC, the government bought all the unsold, unfit units to prop up the housing market. Your tax dollars at work!