Guy pays $1,100 monthly rent for NYC apartment smaller than parking spot. He has no complaints

Tiny apartments have been the talk of the town in New York due to the high demand and short supply of properties. Several residents who moved in with a dream often make the best practical use of such tiny apartments. One such citizen, Alex Verhaeg who lived in a 95 sq. ft. apartment has been sharing his story with the world and he recently shared insights with CNBC Make It as well.

Here’s how living in a tiny apartment in New York looks like

Verhaeg, who works as a content creator and USPS mail carrier, moved into a 95 sq. ft. apartment in Manhattan’s East Village when he turned 21. As per CNBC, he was paying about $1,100 a month in 2022 for an apartment that is less than the size of a parking spot, which is about 150 sq. ft.

The apartment didn’t have a bathroom and the residents of the five-story building had to share the three bathrooms and two showers on each floor. “You had to share some things like the restroom but the apartment itself was just mine, which I enjoyed,” Verhaeg told CNBC Make It. He added that living in the tiny apartment taught him that he doesn’t need a lot of things to survive.

But in the summer of 2023, about two or three months before his lease was up, Verhaeg had to decide whether to renew or look for a new and possibly bigger place. Thus, Verhaeg moved out of his tiny apartment into a three-bedroom, one-bathroom apartment in Midtown with two roommates. He now pays $1,300 a month in rent.

Verhaeg now says that after a slight adjustment period, he enjoys having access to things like a full-size stove and more. He has been living in his new apartment for six months now but he misses his old tiny apartment sometimes.

Renting in New York City

Renting in New York City has long been tough for renters, but the city recently hit two crucial milestones that show how difficult it is to find and pay for an apartment in the current economic climate. As per a Market Watch report, the cost of renting in New York has hit a new high, just as the number of available rental units has dropped to a 50-year low. Renters now need to dish out up to $10,000 upfront to rent an apartment.

Getting an apartment in the city has turned into a bidding war. The high demand is a result of the pandemic during which nearly half a million New Yorkers left the city to relocate, as per Architectural Digest. However, in 2022, restrictions were gone, rent was up and most relocators returned to the city looking for new apartments. Only this time, the supply was short as landlords saw an opportunity to jack up rents. Furthermore, putting down applications for apartments turned into a bidding war with applicants offering $200 to $300 over the asking price. Thus, the proposition of living in a tiny apartment and paying comparatively lower rent has appealed to many like Varhaeg.

Editor's note: This article was originally published on March 26, 2024. It has since been updated.