You’ve likely heard of tiny houses. But have you considered tiny, tiny apartments?

A new initiative aims to tackle the housing shortage by transforming vacant office spaces in several American cities into very affordable rental apartments. The twist: these units would measure a maximum of 150 square feet, similar to a typical college dorm room, primarily designed for sleeping. Residents would share amenities like living rooms, kitchens, bathrooms, and laundry areas with others on the same floor.

The concept of small private units within shared living spaces isn’t a novel idea; single-room occupancy residences have existed for centuries. Just before the pandemic hit, several “co-living” establishments emerged across the country. Remember the “WeLive” concept from WeWork?

This latest proposal, presented by the Pew Charitable Trusts and the architecture firm Gensler, seeks to blend traditional housing concepts with the current surplus of empty office buildings, while also addressing the significant challenges associated with converting these spaces into standard market-rate one-, two-, or three-bedroom homes.

Currently, about 20% of office buildings across the nation remain unoccupied four years after the pandemic sparked a shift toward remote work, with even higher vacancy rates in certain cities. Conversely, the nation is grappling with a pressing need for millions of affordable housing units.

By centralizing plumbing and kitchens on each floor, which are usually located in similar spots in office buildings, it can cut construction costs by about 25-35% compared to other office-to-residential conversions, according to the report. “Since the micro-apartments are designed to be narrow and deep, every unit will feature a large window, while accommodating roughly three times as many units as a standard apartment building on each floor,” the study states.

The evaluation focused on the practicality of these conversions in three cities: Seattle, Denver, and Minneapolis. These locales were selected for their high median rental costs, substantial vacant office space downtown, and significant homelessness and housing instability, which refers to ongoing challenges in affording housing. Notably, there are “no significant existing regulatory hurdles” in these areas, according to the report.

The image above displays a proposed apartment in Denver, estimated to cost around $850—less than half the city’s current median rent of $1,771.

Pew and Gensler believe these apartments would attract a wide range of tenants, including seniors who can no longer live independently, newcomers to the city, and even government agencies seeking affordable options for homeless individuals. Residents would require security access and would only be able to enter the floors where they reside.

“While this plan won’t solve every housing issue,” stated Alex Horowitz, housing policy initiative director at Pew, during a press conference. Nonetheless, he emphasizes that these “micro-apartments” contribute to increasing the housing supply at the most affordable price point, which is challenging for developers to address.

Establishing affordable housing in central urban areas could also help revive numerous commercial zones that have struggled post-pandemic, according to Horowitz. Additionally, it could lead to reduced greenhouse gas emissions by incentivizing residents to utilize public transport or walk to nearby jobs instead of driving.

From their preliminary discussions with developers and investors regarding the proposal, Gensler and Pew have found significant interest in the concept, though as Wes LeBlanc, strategy director and principal at Gensler, points out, “the devil is in the details.”