Residential properties being constructed right now consist mostly of single-family homes and high-rise buildings (such as condominiums or apartments.) However, this was not historically the case because small apartment buildings used to be a staple of city neighborhoods, particularly heavy residential areas.
Many urbanists have been bemoaning the scarcity of new small apartment buildings, as it has proven to be the most cost-effective options for residents.
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Based on affordable housing nonprofit organization Enterprise Community Partners and the University of Southern California, the residence type that gives renters the lowest price is an apartment building with two to nine units. For a nation that is comprised of more than 45 percent of millennials still living in their childhood homes, cheaper rents are a welcome development.
Unfortunately, for this same reason, developers have ceased building these small-sized and midrise buildings—- they have not yielded profits. The latest zoning rules have made it more favorable for developers to either put up, as mentioned above, single-family constructions or apartment buildings that have dozens to hundreds of residential units.
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Building codes are being written, though, to encourage and incentivize the development of smaller apartment structures, or what experts have begun to call as the “missing middle.”
Eugene Bernshtam is the head of real estate development company Avalon Holdings, LLC, and its affiliated entities. He specializes in apartment buildings and mixed-use properties. Visit this website for more information about Mr. Bernshtam.