A newly renovated 350 square feet apartment in Manhattan's SoHo neighborhood has been listed for a whopping $645,000.
The cost per square foot for the micro-apartment is about $1,843, while the average for the neighborhood is $1,417, according to Zillow.
Business Insider points out that the typical American home is about 2,687 square feet and costs around $228,000, which makes the cost per square foot around $85.
Eco-conscious architect and entrepreneur Graham Hill designed the micro-apartment several years ago.
Hill said in a 2016 interview with Dwell magazine. "I believe we intuitively desire simpler lives filled with high-quality experiences, relationships, and possessions."
The 350 square feet micro-apartment is the second Hill renovated at 150 Sullivan Street. The other unit, which has about 100 square feet more, comes in at 450 square feet, is a bit more spacious with seating for ten dinner guest, host two quests and has a home office. It sold for $790,000 in 2014.
"Americans are using three times as much living space today as they did in the 1950s. Even with all this space, we're supporting a 22-billion-dollar personal storage industry. I see a home like this as a compelling alternative to the status quo," Hill told Dwell magazine in 2012.
According to 6sqft, Hill listed the 350 square feet apartment last year for $750,000. Fast forward one year later with a real estate bust underway in Manhattan, and the property is now going for $645,000, a 13% discount over last year's price.
We have warned that a nationwide housing slowdown is underway, data from the second quarter show that Manhattan real estate has entered a vulnerability period. The market plateaued from 2016 through May 2018, the combination of higher mortgage rates, declining foreign buyers, and a cap on the SALT deduction caused the Manhattan Zillow Home Value Index to slide 14% in one year.
Supply of homes is also another big issue for SoHo, the average days on Zillow almost doubled, from 111 days in May 2018 to 209 days in May 2019, hitting 2013 levels.
With an overall deteriorating real estate market in Manhattan, it's likely the 350 square feet micro-apartment will have trouble selling and continue to see drastic reductions in its list price.