Could you see yourself living in a space no bigger than two parking spots? For some Australians, this idea is no longer just a thought experiment.
As urban housing pressures rise, new residential concepts are emerging that challenge traditional ideas of home.
The micro movement: Small spaces, big vision
Perth is now at the forefront of Australia’s shift to micro living.
A $22 million development on Stirling Street, just a short walk from Perth’s central business district (CBD), has been approved to build 88 micro apartments.
Most of these units will measure just 26 to 28 square metres—about the size of two average car parks.
The smallest units will be used for short-stay accommodation, while slightly larger ones will be leased out for terms of three months to three years.
According to developer Marprop, the target market includes fly-in, fly-out workers (FIFO), students, and young professionals—people who prioritise affordability and convenience over space.
Each apartment will be self-contained, including a bedroom, kitchen, and living area, and most will feature balconies.
Communal amenities such as lounge and dining areas, a co-working hub, gym, and rooftop terrace aim to make up for the compact interiors.
The City of Vincent and Western Australian planning authorities have thrown their support behind the initiative, even using discretionary powers to allow units smaller than usual.
What remains unknown, however, is how much it will cost to live in one of these pint-sized homes.
A global trend, local twist
Micro apartments aren’t a new phenomenon. Professor of Finance Shaun Bond from the University of Queensland notes these compact homes have existed in dense cities like London, Paris and New York for years.
‘It’s the type of thing that seems good in practice, but when it comes to the reality of actually living there and owning it, the evidence has been a little bit mixed,’ he says.
Where housing affordability is tight, micro apartments serve as a practical—if divisive—solution.
In Sydney, however, current regulations restrict their development. The Apartment Design Guide mandates a minimum size of 35 square metres for studio units.
Perth’s newly approved development breaks this convention. Real estate expert Tim Abbott from Ray White believes smaller living options will likely become more common in Sydney too—provided regulations evolve.
‘There are rules and regulations that dictate minimum sizes of apartments,’ he explains.
‘But as Sydney grows, it probably will end up being a bit more like that if the regulations allow it.’
More than student digs: Changing demographics
Although micro apartments are commonly associated with young singles, the reality is broader.
A recent project in Marrickville by not-for-profit developer Nightingale offers a glimpse into a more inclusive model.
The build-to-rent development includes 54 micro apartments ranging from 22 to 31 square metres.
Rents are set at 80 per cent of the market rate and allocated by ballot to residents who meet income and asset eligibility.
In partnership with Fresh Hope Communities, the initiative shows how compact housing can play a role in easing affordability pressures.
Meanwhile, Pro-invest Group has announced plans to develop 2,000 ‘flex’ apartments—fully furnished 25 square metre units equipped with a kitchenette, toilet and bathroom.
Pros and cons: Is micro living for you?
There’s clear appeal in affordable, central housing—particularly as rent prices climb.
But how sustainable is life in a room the size of a hotel suite? Professor Bond says thoughtful design is key.
Poorly executed, micro apartments risk feeling like ‘just a shoe box’. He adds that while micro living may suit students, single professionals and FIFO workers, broader market appeal is likely to remain limited.
‘It’s not going to solve the affordable housing problem, and I think the appeal will always be very limited to a certain small segment of the market,’ he says.
Practical challenges also remain. Most lenders avoid financing properties under 35 square metres.
While a few may consider apartments of 30 square metres, anything smaller is generally considered too risky, especially during economic downturns.
A piece of the puzzle, not the full solution
Micro apartments won’t solve Australia’s housing crisis, but they offer an additional layer in a system that sorely lacks options.
As Professor Bond puts it, ‘We want to see higher density, we want to see bigger developments and a bit more variety of apartment types. So micro apartments are definitely part of this, but also traditional one-bedroom apartments. We also need larger apartments for families who want to be closer to the urban core and more townhouse developments, so we can fit three homes in an area that maybe only one home fits in the past.’
Your turn: Would you downsize to a micro apartment?
The micro apartment movement is gaining traction, signalling a broader rethink of what makes a liveable home.
For homeowners, it might not be about downsizing today—but the trend opens doors to new possibilities.
From smart investment potential to reimagining urban living for future generations, living small may mean living smarter.
Would you consider trading space for convenience and cost? Have you lived in a micro apartment overseas or seen similar models in action?
We’d love to hear your thoughts in the comments below—your perspective helps shape the conversation.
Also read: Hope or hype: Can Labor deliver 1.2 million homes?
