Micro-housing is one of the simplest and most effective ways to add desperately needed homes to strained housing markets — and Phoenix is proving that smaller spaces can still deliver big on livability.

Phoenix ranks 16th among the top 100 U.S. cities for its share of micro-housing, with undersized units now accounting for 4.8% of its overall rental stock.

That’s according to StorageCafe’s latest analysis, which reviewed housing trends across 100 major U.S. cities to pinpoint where renters have greater access to smaller — and often more affordable — homes. For the purpose of this study, micro-units were defined as rental homes smaller than half the average unit size in their respective states. In Phoenix’s case, that threshold is 424 square feet.

Key findings for Phoenix:

• In Arizona, the average unit size is 849 square feet — but Phoenix is emerging as a leader in the micro-housing movement. Roughly 4.8% of the rental inventory consists of units under 424 square feet, with some as small as 150 square feet—redefining what urban living looks like in America’s fifth-largest city.
• Micro-units rent at a 35% discount compared to conventional apartments, making them an accessible option for Gen Z renters, who already make up 23% of the city’s population.
• Despite Phoenix’s strong micro-housing market, its self storage availability remains below average — just 5.48 square feet per capita compared to the national average of 7 square feet — with storage units priced at $123 per month, offering a practical extension of space for micro-unit dwellers in the Valley of the Sun.

For the complete data on all the top 10 micro-housing locations across the US, along with expert insights from industry leaders, please see our full report: https://www.storagecafe.com/blog/top-us-cities-for-micro-housing/.