CREJ - Building Dialogue - September 2015

Micro Housing Fits Bill for Millennials, Empty Nesters




Denver is growing, in size and in stature. Since 2000 the city population has grown by almost 20 percent. The state demographer predicts a growth of 22 percent for the city over a period of just 10 years (2010 to 2020), according to Denver Urbanism (March 2015).

In 1950, only 30 percent of the world’s population lived in cities. In 2014 it’s 54 percent. By 2050 it is anticipated to be around two-thirds, according to the 2014 United Nations report: World Urbanization Prospects.

Emerging from the recession, we have seen the development of a lot of urban, for-rent apartment projects to address the demand from millennials and their empty nester (boomer) parents to move to the urban core.

Average unit size for this product has consistently revolved around the 800- to 900-square-foot mark. Rent prices now are around $2.50 per square foot and above, which equates to a monthly rent of $2,000 or more.

While this exceeds monthly mortgage payments for many single-family homes, it is difficult for a large number of millennials, who are already burdened with school loans, to qualify for a home loan; or they simply don’t want to get tied down to homeownership yet. There is also Colorado’s ominous and much discussed construction defects law, arguably preventing new for-sale product being introduced into the market place.

With increased construction costs (up 4.12 percent just from 2014 to 2015, according to Rider Levett Bucknall USA’s Quarterly Construction Report - 1st Quarter 2015), the pressure in the marketplace continues to grow.

What can be done to address this? Between 1973 and today, the average living space per person has almost doubled, according to the 2014 U.S. Census Bureau Report, Characteristics of New Housing.

How were our parents grandparents ever able to survive in such constrained living quarters? The average home size increase is a consistent trend that exists in all wealthy societies throughout the world, but Asia and Europe lag the U.S. in square foot per capita. So rather than focus on continuing the trend, innovative designers, architects and developers have been asking themselves how to improve livability and quality over quantity.

The automobile industry is starting to see some success in the “luxury compact” market segment in the U.S., offering all the amenities and creature comforts of their larger vehicles in premium, but smaller, product.

IKEA is showing a corporate understanding and demonstration of livability of smaller units in its mockup displays of apartments as small as 290 square feet, and really conveying this to its customers.

Moving back into their parents’ home through the recession has given many millennials a new appreciation of what really is necessary, yet comfortable to live in, in terms of size.

Much more emphasis is given to public spaces and amenities in apartment projects, as an extended living room, office, and space to socialize with fellow renters.

Lines between leisure and work are becoming ever more blurred, which has uncovered an enlightened mindset as to the importance of a balanced life. And transition from material ownership to service demand continues to be strong. Take, for example, transportation: The interest lies not in owning the means of transportation (a car), but rather the service of being transported from Point A to Point B, seeking the fastest, most convenient and most cost-effective option.

In this context, JG Johnson Architects had the opportunity to be the architect and interior design firm for the very first micro-housing project in Denver. Turntable Studios is a 179- unit apartment project, repurposing the old VQ hotel, known for its iconic circular building, into micro apartments.

The conversion of the pre-existing 1960s prototype hotel allows for some leniency regarding accessibility requirements, which is one of the challenges when attempting to design more compact units. A difficult achievement was to fit a full kitchen and bath into the space that used to be the hotel bathroom. The studio units, at 335 square feet apiece, even allow for a separate bed niche/bedroom that can be cordoned off with a curtain. Included is a large mirror door wardrobe, shelving, a seating area in the living space and a little counter seat/work desk as an extension of the kitchen counter. The bathroom is optimized by using a compact vanity unit that includes under-counter storage, and a mirror cabinet above.

In a cost-savings effort, the existing bathtubs were maintained in place and refinished. The location of the project in the Jefferson Park neighborhood – with the Highlands adjacent – is very convenient and near to downtown and Interstate 25, but the developers (Nichols Partnership and Capital Realty Group) focused specifically on maintaining an attainable monthly rent price point below $1,000.

The biggest improvement on the exterior, with a significant impact on the interior unit feel, was to replace the old glazing and storefront system with new floor-to-ceiling fenestration, including the addition of a sliding glass door with a Juliet balcony railing.

The blackout window blind roller shades were selected in three different colors, randomly placed throughout, and will add an ever-changing playful color pattern to the otherwise neutral building exterior.

Other important aspects in micro-unit buildings are storage and amenity spaces. As a former hotel, the building includes an outdoor pool, which was fully restored and upgraded. The old hotel lobby and porte cochere have been uncluttered and reconfigured, and now they are spaces to meet, work and play. The large green parklet with mature tree growth, located right in front of the building, but previously underutilized, now has a direct connection to the ground-floor interior and adds a dog run, a fireplace area and some signature sculptural pole elements with the ability to suspend hammocks. Storage rooms with individual locking compartments and a covered exterior bike storage structure with a bike repair station were added.

Nevertheless, given its location and the desire of renters to still own a car, if not for weekday use, but for weekend mountain travel, has prompted the maintenance of a relatively high number of parking spaces (160), while a car-share option will also be on offer.

This brings to light the challenge of current zoning within the city, which hasn’t been an issue for standard-size apartment projects (typically they are designed to significantly exceed zoning requirements for market reasons). Zoning allows a variance reduction of parking to 50 percent minimum, but at around 350 gross square feet per parking stall in an average parking lot or garage, the ratio of parking square footage vs. living square footage seems skewed. Denver Planning and Zoning may want to investigate creation provisions for these different housing product types.

For new built projects, the accessibility requirements will pose challenges when trying to optimize spaces. But the concept of micro-units has proven viable and could be essential in order to provide attainable housing for the continued influx of workforce talent into urban areas, maintaining vibrancy in our inner cities. Living smaller can be desirable – more attainable, right-sized and, above all, ecologically responsible.

More is just more; less can and has to be better, more intelligent, right-scaled.