To go big in real estate, you have to go small.

Everyone’s obsessed with building bigger.

Bigger homes. (Average: 2,480 sq ft)
Bigger apartments. (Median: 1,200 sq ft)
Bigger square footage. (Up 47% since 1990)

Meanwhile, construction costs hit $186/sq ft. Interest rates are 7.2%. The average person making $67K can’t afford what we’re building.

So what’s the $2.1 billion solution? Build what people can actually afford.

Micro-units. Tiny homes. ADUs. The stuff that makes traditional developers roll their eyes.

“Who wants to live in 300 square feet?”

Apparently, 2.3 million people when the alternative is spending 54% of their $4,200 income on rent.

Here’s what I realized: Americans are slowly accepting what Europeans and Asians figured out decades ago. You don’t need 1,500 square feet to live well.

You need smart design. Efficient layouts. Shared amenities.

A 250 sq ft micro-unit at $1,200/month (rent-to-income: 28%) is infinitely better than a 900 sq ft apartment at $2,400/month (rent-to-income: 57%) that you can’t afford.

This isn’t about developers being cheap. It’s about being realistic with $847B in unmet housing demand.

The market is telling us exactly what it needs. We just have to listen to 73% of renters who are cost-burdened.

While everyone else is trying to build the next $450/sq ft luxury high-rise, I’m betting everything on $180/sq ft small.

Not because I love tiny spaces. Because I love 23% profit margins that actually work.

And right now, in 89% of major metros, the only thing that pencils is small.