The micro-living concept has gained considerable traction over the last several years as millennials continuously seek out affordable but high-end living in or near urban hot-spots. As cities become denser and the costs of land and construction (and in turn real estate prices) rise, some developers are looking towards downsized units as the answer to serving the millennial market while generating higher rent per square foot ratios. South Florida may just be ripe for this new twist on city-center living. The key to understanding micro-living is tuning into millennial lifestyle trends and appreciating what millennials value most. Driving the micro-living movement are economics, place, and privacy. Residents of micro units pay a lower monthly rate and are able to live on their own in highly desirable (think trendy, central, and walkable) locations. While there is no exact definition of a micro-unit, such term typically describes units of roughly 400 square feet and they represent a growing niche of the real estate residential market. The rise of micro units reflects a generation full of young, work-hard/play-hard professionals willing to sacrifice square footage for affordability, work proximity, and a flexible lifestyle. The city itself essentially becomes an extension of residents’ living space. To compensate for the reduction in living-space, many developers are enticing residents with luxury amenities, such as those part of the residential amenities program developed by Stage 3 Properties in NYC’s first micro-unit development, Carmel Place in Kips Bay. “Ollie”, as the program is called, offers residents a gym, lounge, roof terrace, and use of other facilities like work-spaces, pools, and spas at other buildings. Residents can also use Ollie to find roommates and connect with others through networking and socializing events. Another key example is WeLive, the first residential building by WeWork—a trailblazer in communal workspace. WeLive features tiny bedroom spaces in prime-location buildings, coupled with amenities and a strong emphasis on social connectivity. Dubbed by some as Dorm 2.0, WeLive is helping to pave the way for a re-design of apartment living with a focus on cultivating the community experience. The design of micro-units is typically minimalist with an emphasis on efficiency maximization. Flexible furniture systems, high ceilings and oversized windows help make the units feels bigger than they actually are. And while a complex of micro-units is more expensive to build than a standard apartment building, developers can more than make up the cost in the premium value ratios achieved. For example, according to NeighborhoodX, a real estate data firm, the average rent for all of Kips Bay is roughly $58.29 per square foot annually but the owners of Caramel Place are renting at around $106.67 per square foot. San Francisco, Los Angeles, Manhattan, Boston, Atlanta, and Seattle are some of the markets already experiencing notable growth in more compact living. As the South Florida start-up scene continues to heat up and attract more millennials, the migration toward smaller living may become a piece of a much larger picture of establishing South Florida as a major technology hub of the Americas. While momentum in micro-unit developments has not yet hit the South Florida market, they may well be in the pipeline.