‘Tiny’ Condos Are Selling for a Premium
A condo housed in the Setai, a luxury condo-hotel in Miami Beach, may be only 767 square feet but it’s being listed for $2.5 million, making it the nation’s priciest “tiny home,” The Wall Street Journal reports.
Other major metro areas, like New York City and San Francisco, are finding buyers will pay a premium for cramped corridors if it includes city living, walkability, and shorter commute times, says Lawrence Yun, the chief economist at the National Association of REALTORS®.
For some buyers, the extra amenities in these buildings make up for the tiny housing. Those amenities may include everything from concierge and room service to housekeeping. “They don’t want to be involved in any aspect of maintenance,” Yun says.
The tiny residences may be small but the design of them are critical in making sure it doesn’t feel that way, says Angela Ferrara, a marketing and sales agent, of the Marketing Directors. A 606-square-foot penthouse in Manhattan is on the market for $2.23 million and “every square inch is used appropriately,” Ferrara says. The residence includes an open-plan living room, large windows to maximize views and light, built-in cabinets and shelves, and a kitchenette that allows space for a dining room table.
Nevertheless, the buyer pool for tiny homes remains small. In 2014, only 1 percent of home buyer purchased a home that was 1,000 square feet or less, according to NAR’s research.
Source: Realtor.org
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