In 2022, the average size of a new flat will be 887 square feet, down 54 square feet in the last 10 years as developers increasingly focus on building more studio and one-bedroom flats.
This is according to a new report by RentCafe, which shows that demand for rental housing continues to soar across the country.
Despite the strong demand for more flat space during the COVID-19 pandemic, 2022 saw the largest year-on-year drop in new flat space - 30 square feet (3.2 per cent) less than in 2021.
"This shows how different the rental market will be in 2022 from previous years," said RentCafe writer Adina Dragos. She adds that it also shows how the pandemic demand for "more space" has given way to a demand for "more flats".
As usual, there are some big regional differences in this national report. The largest condominiums are in Florida and the southern hinterland, where land is often cheaper than in the expensive west and northeast.
Tallahassee, Florida has the largest new condos with an average size of 1,182 square feet. This is followed closely by Gainesville, Florida, Mobile, Alabama and Knoxville, Tennessee.
When comparing all condominiums (both old and new), Marietta, Georgia has the largest condominiums with an average size of 1,060 square feet (approximately 1,060 square metres). It is followed closely by Tallahassee, Columbia, South Carolina and Gainesville.
However, the areas with the smallest flat sizes, including both new and older flats, may come as a surprise. Seattle and San Francisco have the smallest flats, both at 689 square feet (approximately 689 square metres), followed by Minneapolis and Chicago.
Seattle also tops the list of smallest new condos at 659 square feet, followed by Queens, New York, Portland, Oregon and Brooklyn, New York.
For Ashley Hayes, chief operating officer of Seattle Rental Group and managing broker of Pointe3 Real Estate, Seattle's incredible flat downsizing comes as no surprise.
Hayes says that over the past few years, a large number of developers have become accustomed to looking small. Even though home prices have gone up, "if you want something new and you can live in that much square footage, there's still a lot of demand."
Hayes adds that these new developments offer "great amenities" to help offset the smaller living spaces. These include a rooftop pool and deck, a large fitness centre, art studios, common rooms and even office space.
Dragos notes that RentCafe data shows that the vast majority of new flats in Seattle are studios and one-bedrooms, while in northeastern cities, a higher percentage of large flats are vacant.
Manhattan may be the typical location for smaller rental homes, but there has actually been a shift to larger spaces over the past 10 years. in 2022, the average size in New York is 33 square feet larger than in Seattle.
The updated configuration has worked well for many Seattle renters, Hayes said, reflecting a new reality that while many people don't commute to work every day, nor do they spend their entire lives in their living rooms as they have throughout 2020.
Hayes says:- "During the pandemic we did see some people moving around and expanding their houses because they wanted more space." "It was a short-lived moment, but working from home will continue."
