With the cost of living going up, and real estate markets across the country continue to rise, more and more people are looking for cheap living arrangements in order to work in the city, and save up for their dream home. Developers and property managers have identified this market of renters and have taken steps to capitalize while providing super-affordable housing options in metro areas.
Efficiency apartments are one of the new options available for individuals that are on a tight budget or are rarely home. Below, you’ll learn a little about what is the difference between the two, and why they are appealing to the right renter. Don’t worry, we know you are probably asking yourself, “what is an efficiency apartment?” and it we’ll answer that in a bit, and explain more!
What Is an Efficiency Apartment?
Efficiency apartments are named because they are efficient (go figure), with everything being contained into one small room. That means your bedroom, living room, kitchen, office, and dining room are the same room. In cities where the location is a premium due to traffic and commutes, efficiency apartments present a unique solution for those willing to sacrifice space and luxuries for an ideal location to live.
These types of apartments are great opportunities for those fresh out of college (or mom and dad’s house) that are looking to live in the city on an entry-level paycheck or people that have larger homes outside of the city and want an apartment in the city for the late work nights.
The Difference Between Studios and Efficiency
Often used interchangeably, studio apartments are not necessarily the same as efficiency apartments. For one, studio apartments don’t really have a defined size or price limit. Some studio apartments can be quite large, some even more than 1,000 square feet and have price tags to match the size, location, and amenities.
On the other hand, efficiency apartments are only a few hundred square feet and don’t have separate rooms or add-ons. Most often, they won’t even have a closet, and the kitchen is more of a dorm room style kitchenette with a mini-fridge. However, if you are worried that the bathroom won’t be a separate room, the US housing laws require that it must be a separate room, with a door!
But keep in mind that an efficiency apartment, by definition, does not require a full bathroom (there may not be a tub). Studio apartments can often include a loft space for sleeping, which won’t be found in an efficiency apartment.
The Market for Small Space Renters
Both studios and efficiency apartments cater to a small piece of the rental market, just about 5 percent. As mentioned above, these types of units are going to be found in high density, urban markets where there are a lot more young, single professionals, seeking living spaces that satisfy their budgets and needs.
In these higher-priced markets, the difference between one-bedrooms and no bedrooms can be $500 or more. Outside of the big urban markets, these studios and efficiency apartments don’t create as much separation in price, and many renters can afford to upgrade in size because square footage isn’t as competitive in price.
So, whether you are a millennial looking for your first place on your own, or an established professional looking for a place to sleep during those long weeks when commuting is out of the question, efficiency for rent are a great choice. Finding the perfect place to live in any city can be a challenging endeavor. When you are ready to settle down and find that dream home to call your own in Phoenix, knowing the right real estate, to help you on your journey, can make things less stressful and more enjoyable.
Our real estate agents in Phoenix has been helping residents of the Valley and newcomers for nearly 20 years to find their perfect homes in Phoenix, Scottsdale, and Paradise Valley. Start your search, today, by visiting our website!