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Should You Invest in a Studio Apartment?


Studio apartments are small but functional living spaces, which are becoming increasingly popular in the American property market. Typical studio tenants include young professionals or students looking to strike out on their own. They often seek practical, stylish, and low-maintenance living accommodations.

Also known as bachelor apartments, studios are self-contained units with private bathrooms. They usually follow a simple yet functional floorplan where your den, bedroom, and kitchen occupy the same space.

While you likely won’t have sufficient space to entertain guests or bring in heavy furniture, it’s a pretty solid choice for students, singles, and young couples who can’t afford to buy or rent bigger properties yet. A studio also gives them the chance to reside in major cities like New York, San Francisco, or Los Angeles without blowing all their budget.

Studio apartments are becoming more attractive thanks to the easy and relaxed lifestyle they offer right in the middle of a bustling city. Most studios are part of larger condominiums and complexes that offer a range of sports and leisure facilities including gyms, swimming pools, and gardens.

A low-cost investment for beginners
A studio apartment is cheaper than buying and eventually selling a fully furnished home.  Construction and maintenance costs of a 50-square-meter studio are undeniably lower than those of a 150-square-meter house. This allows inexperienced investors to take on a premium investment without entirely breaking the bank.


Purchasing a rental property would also save you from heavy loans and interest rates. Additionally, mortgages for studio apartments tend to be cheaper and shorter than your regular home mortgage. With the exception of service charges and ground rent, you will have almost zero maintenance costs if you purchase a studio from a development.

Apart from low initial costs, studio apartments also offer a steady source of revenue. Rental pricing usually depends on the nature and location of your apartments. For bigger cities like Los Angeles, rent can cost $900-$3,000 per month while in In New York, prices range between $1,800-$4,000. Similarly, rent can go anywhere between $1,900-$4,200 in San Francisco and $1,200-$3,000 in Boston.

Many studio owners have also listed their properties in Airbnb especially if they are located in touristy areas. This can bring in game-changing revenue as visitors and travelers usually seek budget-friendly options when they are abroad. Airbnb links them to apartments or budget hostels that are cheap, convenient, and within proximity to major sites and cities. This gives them more practical options than staying in overpriced hotels.

Short-term rentals can generate high profit especially during holidays and peak seasons, although a yearly renter would guarantee a steady stream of income. Long-term renters also pay utility bills while short-term ones don’t, which means higher costs on your part. Either way, make sure to weigh the pros and cons for yourself and choose the option that will provide better long-term results.

Modern society’s housing perceptions and needs have changed in recent years. As utilities and public transportation become more expensive, people are seeking economical options like studios more than ever. For investors, studios offer fewer risks, higher rental yields, and more opportunities for growth than larger properties

Welcome to my blog! I'm a teacher during the day and lifestyle blogger by night. I love pop culture, entertainment/TV/movies/music, food, beauty, travel & fashion!

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