New Study Reveals 54% of Renters Prioritize Extra Rooms in City Apartments, Challenging Developer Norms

Bobby Fijan, a prominent real estate developer and co-author of a recent report with the Institute for Family Studies, is championing the business case for building family-friendly housing in urban centers. His work highlights a significant unmet demand, asserting that many city residents would remain if suitable housing options were available. Fijan stated in a recent social media post, "> This is the business case for building housing for families in the City. Yes, the price is really hard to drive down … but the “hard” part is solved: fundamentally there is demand for this Product. Those people who move in to the City would stay if they could."

Fijan observes that developers predominantly construct studios and one-bedroom units, driven by short-term financial incentives and underwriting logic. This trend, while seemingly rational for maximizing rent per square foot, contributes to an "urban family exodus," where young adults leave cities upon starting families due to a lack of appropriate housing. This results in cities attracting young professionals only to lose them as they age and seek more space.

The Institute for Family Studies report, based on a survey of over 6,000 Americans, reveals a clear preference for floor plans with more bedrooms or dens. For instance, 54% of respondents interested in having children chose a 750 sq ft 1-bedroom with a den over a standard 1-bedroom of the same size. This demand for "literal rooms with four walls," even small ones for nurseries or home offices, signals a market opportunity for developers.

Fijan advocates for design changes that prioritize living space and additional rooms over oversized bedrooms and walk-in closets, which are common in current designs. He points out that amenities often cater to pets rather than children, with features like dog wash stations being prevalent while toddler rooms are scarce. However, softening rents and costly tenant turnover for smaller units are beginning to shift developer perspectives, making the long-term stability of family tenants more attractive.

The report suggests that by offering diverse unit layouts, developers can tap into this overlooked demographic, potentially leading to lower turnover rates and higher net operating income. While the real estate industry is traditionally risk-averse, the data indicates a clear financial incentive to experiment with designs that allow young couples to comfortably raise infants in urban apartments, fostering longer-term city residency and community building.