U.S. Real Estate Market: Small Homes with Big Opportunities

micro-mansions

Will the micro-mansion become the next macro-trend? Developers in Florida are betting on modestly sized properties with all the amenities of luxury housing.

First came the micro-apartments, 400-square-foot (37.2-square-meter) multifamily units. (37.2 sq. ft.) and smaller with well-equipped kitchens and bathrooms. Then they were replaced by so-called “tiny houses,” a trend so popular that at least four reality shows were devoted to it.

Today, Frank McKinney, a fairly well-known real estate developer from Delray Beach, Florida, is confident that wealthy real estate buyers in the United States will very soon be interested in purchasing what he calls micro-mansions.
McKinney’s target market is extremely high-income clients who can afford to buy a $10 million home in America, but would prefer to house the luxury and privacy of private life in a smaller, easier-to-manage space.

“Many buyers are spending $2,000 to $3,000 per square foot (0.09 sq. ft.) buying an apartment in Miami,” McKinney says. “They’re willing to pay for micro-mansions, but there are no such properties here. I’m sure they’ll appreciate the smaller houses.” That’s why Frank is now throwing his weight behind building micro-mansions in Ocean Ridge, Florida.