Agenda - Planning Commission - 04/05/2018

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edla (CC BY -SA 3.o) Q This micro -apartment building in Seattle's Capitol Hill neighborhood has 6o units with private bathrooms and kitchenettes. percent did not start out looking for a micro apartment (Carey et al. 2(315). Rather, they chose their residences as a trade-off for lower rents; proximity to work or school, neighbor- hood amenities, and transit; the ability to live alone; Internet service; and unit finishes. The target market for micro apartments are single men and women under the age of 34, currently living with roommates, and earning less than $40,00o per year (Carey et al. 2015). Market research indicates that most of these individuals rent micro apart- ments when they are new to a career or city, and that they graduate to larger units after a year or two. These units seem especially attractive to entry-level technology and new media industry workers (Carey et al. 2015). Micro apartments versus single -room occupancy units While there are no formal distinctions among different types of very small multifamily resi- dences, real estate professionals routinely draw distinctions between single -room occupancy (SRO) units geared toward very - low -income residents, and micro apartments aimed at young professionals. SRO units typically rent by the day, week, or month, and do not have kitchens. Meanwhile, con- temporary micro apartments generally lease by the year (or school semester) and have in -unit kitchens or kitchenettes (i.e., refrig- erator, microwave, and sink). However, in some cases the built form and internal space configuration can be very similar for both. Individual micro -apartment projects can vary considerably in terms of unit features and communal amenities. Some projects incorporate a range of design solu- tions to make units seem larger, includ- ing built-in furniture and storage areas, high ceilings, large windows, and mov- able walls and kitchen islands. Others place the emphasis on com- munal facilities, such as shared kitchens, dining areas, and gath- ering spaces. At the top of the market, some buildings offer both. New SRO projects haven't gained as much media attention as market -rate micro -apartment projects; however, in some cities, public hous- ing authorities and nonprofit developers have shown renewed interest in SROs as "housing -first" for individuals experiencing homelessness. Contemporary SROs may provide in -unit kitchenettes, and often incor- porate communal spaces for cooking, eating, or socializing. In these cases, the key physi- cal distinction between micro apartments and SRO units are the quality of the finishes. PLANNING FOR MICRO APARTMENTS The reasons for supporting micro -apartment projects go beyond satisfying existing market demand. However, careful planning is neces- sary to assess the likely effects of regulatory changes and to address community concerns. The Benefits of Micro Apartments All other factors equal, per -unit housing costs decrease as unit size decreases and project density increases. Consequently, micro - apartment projects can increase housing choice and afford- ability in tight housing markets. Beyond the benefits to individual residents, micro apartments in pedes- trian- and transit -friendly locations make more efficient use of existing infrastructure and public services, consume less energy, and have a lower carbon foot- print than larger residences. Micro apartments can also be part of a local economic development strategy to attract and retain young professionals. Expanding opportunities for people to live near downtown jobs and amenities can be attractive to current and prospective employers who need access to an educated workforce. Assessing Market Conditions Not every housing market is ripe for micro - apartment development. Furthermore, what qualifies as a micro apartment in one market may seem roomy in another. Before considering regulatory changes to facilitate micro -apartment development, it makes sense to assess the local housing market, to determine the likely effects of permitting dramatically higher density residential devel- opment on housing costs in the community, and to gauge how much smaller apartments would need to be to make a micro -apartment project "pencil out" for developers. For communities with low housing demand, regulatory changes will likely have little to no effect on development outcomes or housing costs. On the other hand, making micro apartments legal in communities with very high housing demand relative to exist- ing development opportunities may have the unintended consequence of raising housing costs across the board as property owners and developers see the potential of higher rents per square foot. This same relationship between hous- ing demand and existing development opportunities will also partly determine the The luxury Channel apartment building in Washington, D.C., includes more than 15o micro apartments with' sizes ranging from 337 to 358 square feet. ZONINGPRACTICE 3.18 AMERICAN PLANNING ASSOCIATION Ipage 3