To combat the issue of space vs. population, many property developers are leaving behind the “build upwards” model and instead are opting to build smaller. Enter micro-apartments, the new housing trend gaining interest in population-dense cities like Chicago, Boston and New York City.

Micro-apartments are becoming more popular in these cities because they provide benefits to both parties – property managers and renters. For property managers, micro-apartments mean an increase in total amount of units, which of course leads to more revenue.

“New York City sets its minimum square footage to 250, and the average square footage of a one-bedroom apartment there is 750. This means [property managers] could create three micro-apartments out of one average-sized apartment.”

For renters, micro-apartments mean cheaper rent and a great location. The target demographic for these units are middle-class, single and younger renters, and for that reason, micro-apartments are typically located in sought-after urban neighborhoods.

What’s more, renters can live in these desired locations without breaking the bank. In San Francisco, micro-apartments go for $1,600 a month, and with an average rent of $2,741 throughout the city, these renters are getting quite a deal.

Manhattan won’t be the only borough to benefit from micro-apartments. Apartments for rent in Brooklyn NY are almost as expensive as Manhattan apartments for rent. Neighborhoods like Williamsburg, Greenpoint, Park Slope, Cobble Hill, Carroll Gardens and Brooklyn Heights can all benefit from micro-apartments.

While micro-apartments will definitely require renters to compromise on space, this new housing trend can be a great solution for those wanting to live in the center of all the action with paying an arm and a leg.