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Alexandria is the next destination for rapid growth in micro-condo inventory

By CHERYL SPANGLER

Real Estate Broker/Owner with FORBZ Real Estate Group 0225066261 VA

January 21, 2016 01:32 AM

As Seen In www.thezebra.org column titled "Ask REALTOR CHERYL"

Alexandria is the next destination for rapid
growth in micro-condo inventory.

Both millennials and professionals are trading in square footage for city living.

Highlights:

The upswing of condos are re-envisioning the way we live, putting less importance on the size of our home and more importance on the ability to play, dine, shop, work and live all within walking distance.
Micro-unit communities place significant emphasis on multiple amenities outside the units themselves, such as shared communal spaces that encourage socializing and foster a sense of community.
While suburbia isn’t dying, people of all ages are tired of their car-centric lives and are concerned with finding a home in a location that’s compatible with their interests and values.

Luxury condos in general are on the rise in and around the DC Metropolitan area, which includes VA, DC and MD. The growing demand of micro-condos and is effecting local communities including Alexandria City.

Micro-condo market

Mini size apartments and condos are common in Tokyo and many European capitals as a smart growth, lower-priced solution to a housing phenomenon: people living alone. Nationwide the share of households occupied by a single person has reached over 27 percent. Areas where that number exceeds 40 percent include Atlanta, Cincinnati, Denver, Pittsburgh and Seattle, according to the National MultiFamily Housing Council (NMHC). Other areas of concern where single residents are continuing to rise are San Francisco, New York and the DC Metro Area, which includes Alexandria, VA which is only 5 minutes away.

Construction

Micro units are typically about 350 square feet in size, but can range from less than 250 square feet to 500 square feet, depending on the city building code. They have no separate bedroom, sleeping space is combined with living space, but they do have fully functional bathrooms and kitchens. Micro-unit communities place significant emphasis on multiple amenities outside the units themselves, such as shared communal spaces that encourage socializing and foster a sense of community. Design that enhances the quality of life with more windows, higher ceilings, rooftop gardens, less maintenance including artificial turf, more durable materials and systems. Micro-unit buildings place emphasis on laundry room, assigned parking, fitness center, Wi-Fi and cafes. Micro-unit interior places emphasis on potential washer/dryer, built-in storage and convertible furniture.

Target Market

The target market profile for micro units is predominantly young professional singles, typically under 30 years of age, earning between $40,000 to $60,000 per year, both males and females, according to an article published by the Urban Land Institute's Multifamily Housing Council. Other market segments include couples, older single empty nesters and temporary residents. Singles currently living with roommates tend to be the most interested in making the switch from a traditional unit to a micro-unit. There is a bigger desire to sacrifice space for “quality” location, shortening commutes and walking more.

While Suburbia isn’t dying, it’s clear many homebuyers and renters are moving downtown where work, home and retail are at their doorstep. People of all ages are tired of their car-centric lives and care less about square footage and more about finding a home in a location that’s compatible with their interests and values.

Trends and why

Those interested in micro units are seeking to lower their rental or purchase costs, including both primary owners and investors. They are also drawn to the trendy locations such as Alexandria, VA where micro units tend to be built, and by the ability to live alone, walking access to grocery stores, restaurants, gyms and entertainment. Motivating factors include location, price, proximity to work and education institutions, neighborhood amenities, the ability to live alone and proximity to transit.

Generation Y (Millennials) are a large part of the group interested in micro condos listing the following reasons: delayed marriage, increase in single person households, decrease in car ownership, tendency to accumulate fewer belongings and participate in a sharing economy.

A highlight of just a few of Alexandria’s micro-condo communities: