While Some Buildings Lag, Microhousing Establishes Resiliency
As with all multifamily markets, microhousing was tested by the pandemic. However, both occupancy and rental rates are up. Average rent on micro units between 150 and 250 square feet is up 6.1 percent year-over-year at $1,026 with 94 percent occupancy.
Year-end research on Seattle’s microhousing apartment market from Kidder Mathews’ multifamily investment team led by Dylan Simon and Jerrid Anderson, the 2021 Micro Report, shows while some buildings have lagged, the market as a whole established resiliency in 2021. While only a handful of investors currently develop, own and operate microhousing in the Puget Sound, thousands have watched the market boom with equal parts intrigue and skepticism.
“We sold the first microhousing investment in the region in 2016 and have spent our time selling, researching and investing in it since,” said Anderson. “A lot of people look at it as just another investment type, however, we believe in the short- and long-term necessity of microhousing.”
- ◦Lease