The average size of Philadelphia apartments are among the smallest in the nation, and are projected to become even smaller with the current pipeline of multifamily construction, writes Ryan Mulligan for the Philadelphia Business Journal.

According to a report from RentCafe, Philadelphia’s average new apartment size is 764 square feet. This is the ninth-smallest in the nation and an eight-square-foot drop from a decade ago. It’s also well below the national average of 916 square feet.

The average size for units currently under construction is 573 square feet, according to RentCafe’s sister company Yardi Matrix.

Bobby Fijan, founder of Form Developers, credits the shrinking apartments in part to economics. However, he notes that it could have long-term impacts on the demographics of the city.

“The lesson in diminishing marginal returns is that pressure just pushes units to be smaller,” Fijan said.

With the current challenges in the financing market, developers are looking to stretch margins, and studio or one-bedroom apartments typically produce the best return on their investment.

A smaller apartment at a slightly lower rate can bring down costs for young renters, making traditionally more expensive neighborhoods slightly more affordable.

According to Fijan, this trend could have broader, long-term effects on people planting roots in Philly’s downtown neighborhoods.

Read more about Philly’s shrinking apartment sizes in the Philadelphia Business Journal.

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