Developer bets people will buy tiny 'micro-homes' | Business

PORTLAND, Ore. – For many real estate agents trying to sell a house, bigger is better. People want a bigger yard, bigger kitchen and a bigger bedroom. But now one developer in Southeast Portland hopes that “smaller is better” will pay off.

A new development of 29 “micro-homes” is popping up at SE 43rd Avenue and Division Street. A micro-home is a new home, but miniaturized. In some cases, the entire place is right around 360 square feet.

It’s called Division 43, and developer D.R. Horton is betting it will be a hit.

“Instead of bringing massive big homes we decided to work with Portland. There has been a big demand on this but nobody has taken the initiative on it,” said Heidi Hawk with D.R. Horton.

“For people who want an urban lifestyle, who want to have a smaller footprint, you can’t be more Portland than that,” said Jim Beriault with Fish Marketing.

The homes are downright tiny. Studios range from 364 to 687 square feet. One and two-bedroom units are a little larger.

“Urban fill is really the next wave, there are neighborhoods that are needing to be turned over and revitalized,” Beriault said.

Prices on the micro-homes range from $120,000 to a little more than $180,000.