As the Dallas-Ft.-Worth TX area continues to create new jobs and attract newcomers, its real estate market is growing rapidly, and many young professionals are looking for small, modern apartments that are the perfect balance between luxury and affordability. To fill this need, property developers are offering an innovative new take on apartment living: Boutique-units. From Southern California to New York City and everywhere in between, Boutique-units have proven to be a great solution for tenants and real estate developers alike. It’s time for Dallas- FT. Worth to jump on board!
Not sure what they are or why you should start investing in them? Here are some of the most commonly asked questions about Boutique-unit projects. Read on to find out!
A Boutique-unit is a small apartment unit of only a several hundred square feet—think 400-878 square feet as opposed to the national average 934 square feet of your average apartment. Boutique -apartments include a sleeping area, living area, small bathroom, and kitchenette. Sometimes, there are shared amenities for all the tenants in the building: gyms, common kitchens and dining rooms, gardens, and more. You can think of a Boutique-apartment as being similar to a nice hotel room with a small kitchen included.
Rather than just being a small apartment, Boutique-unit floor plans are designed to maximize every inch of the space and feel like a nice home rather than an apartment. Inspired by the tiny house movement, they use innovative space-saving methods to ensure a functional, attractive home for tenants. Clever storage solutions, small bathrooms, and dual-purpose furniture are all common in Boutique-units.
Boutique -apartments are a logical, affordable response to high rents, and they’re highly sought out by many young, single people. Riding on the “tiny house craze” and bolstered by the need for price-accessible living, Boutique-units are quite popular among tenants for the price, the simplicity of living small, the sense of community, and the convenient locations of Boutique-units.
Boutique-Units can often be built near great amenities and community hotspots like shopping centers, restaurants and bars, parks, college campuses, healthcare facilities, and more. That’s because they take up a small footprint and don’t require a lot of land to build on. High-demand locations can dramatically increase the appeal of tiny living.
And, while some homes and apartments may seem too large for single people, Boutique-units are just the right size. A growing percentage of the population is unmarried without children at home. Whether the renters are young singles or retirees, Boutique-apartments allow them to live in a nice building with a fantastic location at an accessible price.
Tenants are flocking to Boutique-units for all the reasons listed above. Since they’re in high demand, Boutique-units tend to have great occupancy rates and can perform well for investors. One management company who operates over 1250 Boutique units quote a 98.75% occupancy rate.
One of the best advantages of Boutique-units is that there are more tenants per square foot. This means owners will benefit from a great net operating income as opposed to other types of real estate developments. Investors are likely to get a steady source of income thanks to the efficiency of building and operating Boutique-units.
Investing in Boutique-units is predicted to be a stable strategy. Though they may seem like a trend, Boutique-units fill a growing need, and they’re not likely to become obsolete anytime soon. In many areas, renters use Boutique-units out of a growing necessity. The tide isn’t going to turn anytime soon.
Boutique -apartments in highly-sought-out cities make the best investments, especially if the cities have a lack of affordable housing. Make sure to invest in a Boutique-unit development in a convenient, popular area with a growing number of young professionals and/or single retirees. Rent in these areas will be more expensive, occupancy will be higher, and turnover will be lower—all good things when it comes to the profitability of your investment!
The modular style (and small size, of course!) of Boutique-units means that they can be built quickly, offering a faster return on investment for those who purchase shares in a Boutique-unit development project. And, even if they are built quickly, developers don’t have to compromise on quality. Most Boutique-unit developments offer high-quality finishes for a tiny apartment that can appeal to a wide range of tenants, even those who are used to higher-end housing. They’re not your typical, shoddy, cramped studio apartments.
Many international cities, like Paris, Tokyo, and Vancouver, have had Boutique-units for years. New York City has always had a plethora of small apartments out of necessity, but in the last few years, developers have been building intentional micro-apartment housing. All these cities have had lasting success, high occupancy rates, and increasing demand for Boutique-units.
In fact, cities are happy to hop on board the trend. Boutique-units allow more young professionals to live within the city limits, expanding the city’s tax base and infusing the area with economy-boosting residents. Boutique-units don’t take up a lot of space, so they are a great way to take advantage of small lots and bring some new life and energy into older neighborhoods.
There’s considerable demand for tiny apartments now, and there’s no reason to think that the trend won’t grow in the coming years. Again, if you plan to invest in Boutique-units, make sure you pick the right location! Dallas-Ft. Worth Motorplex has one of the hottest real estate markets in the country and a growing number of single young professionals. It has multiple community hotspots that people would love to be able to walk or bike to from their homes. It’s an excellent area to invest in Boutique-units!