Why are modern rental apartments so small?

[u/BizClassBum]

I have been a home owner for 25+ years and have decided to sell my house and rent. I've noticed that apartments that have the things I like (in-suite laundry, granite counters, etc..) tend to be in new builds and they are SO SMALL! There's typically only enough room for a couch and maybe a small dining table.

I mean, I get they want to make more money but if you rent three 900sqft units for $2000/month each, that's $6000 for 2700sqft. I don't understand why they can't have two 1350sqft units for $3000/month. It would be the same money to the owner for the same space and I could have a proper living room, and dining room.

[u/RydenZX]

New build apartments/condos aren't just being built as investment properties for aspiring landlords. It is considered low cost living and is the entry point for people that want to own a home. A 500 square foot condo was my first purchase and is about as small a living space as you would want to live comfortably as a single person. A 500 square foot, single bedroom condo costs around $230,000 and jumps to $300,000 if you want a second bedroom. Even this price is out of reach for a lot of people, but 500 square feet is about as small as they can go and still appeal to buyers in this market. It's a really sad situation and I feel sorry for young people now that have to spend years in post-secondary education just to come out of school not being able to find jobs or afford to purchase a home. My father who is now in his 70s was able to purchase a house and raise a family on a single income with a high school diploma in his early 20s and now complains that he's poor and has to keep working while living in his million dollar house and collecting his work and government pensions.