Bobby Fijan

There is no more important issue facing our country than building starter homes for young families … and it’s what I’m working on

Building one-bedroom apartments … but not three-bedroom units is a *literal* chicken and egg problem

Falling fertility is both a cause and effect

It does have overlap and impact on small sub-neighborhood markets ... and I *strongly* support college towns trying to separate college student renters from gen pop. They just don't mix well

student housing is just such a different asset class.

There's an actual fixed number of total demand, and a *massive* dropoff for demand based on location.

I exclude it from any analysis the best I can.

Information pulled directly from apartment buildings rental listings. If it hit any listing service ... the unit and building is included

This is during one of the largest construction booms in any major city. So the absolute number of each unit type (which is much harder to get data on than makeup %) has certainly increased

This chart demonstrates how market forces have delivered an increasing share of 1BRs

Greater than or equal to

There aren't that many 3-story buildings, even in a market like Austin (and I was only looking at the CITY of Austin) ... so the numbers are a bit skewed with individual projects

But the trend is the same

This was for buildings with 100+ units (hence institutional) and 3+ stories

I can swap for 3 stories only

(3BR's are such a small part of the market that they weren't even worth adding to the chart. They're less than 2% of the new apartment stock)

America’s cities are becoming empires of one-bedrooms

This chart shows how apartment developers have changed the unit types built in Austin over past 25 years

From 2000-2005, >50% units built were 2BRs
From 2021-2025, <25% were 2BRs

That’s awesome

Yes. Even a small private space is very very valubkd with kids

Probably the best example is that of a "yard"

It's highly valuable when kids are older to be able to play ... but worth much much less when kids are babies or maybe a toddler

The starter home allows those needs to be pared down, specifically for families at the early stages. This makes it easier for them to either have smaller mortgage payments or else to more easily afford to continue to live in neighborhoods where Mom and Dad already have jobs, friends and community.

Families have very different needs.

A couple who does not yet any children does not NEED a single family detached house in a "good" school district ... but a family of 6 values that a lot more.

For a couple, that means large enough so they can have a baby

For family w toddler, large enough (and in the right area) so kid can go to elementary school etc

If you have to move as life stage changes, that’s OK. Most people move for work, job, closer to family or other life circumstances anyway

We need to bring back Starter Homes ... whether that's a rowhouse, apartment, duplex or single family

The defining feature is they are smaller *so that* they are also more affordable for new families. It needs to be large enough so that it accommodates a families current needs and NEXT life stage

Marketing photos for new homes used to be so much better. Rather than a glamor shot of a huge empty kitchen with a massive island … just showing people *living* in the house

The product fades away. Gorgeous.

Urban rowhomes with a private courtyard

If I took my 6 y/o old to see How to Train your Dragon, which I'm pretty sure she'd like, there's at least a 25% chance that I'd end up needing to walk out while she's wailing "Too Loud! Too Loud!"

And then figure out what to do with the 10 and 8 y/o? Super high risk of no fun at all for everyone

Not at all. Just suggest a different movie, or different place. Like Dave and Buster's.

And if they don't have kids (which I assume?) I think you're doing them a favor. I don't think they'd know how/want to deal with a 4 year old getting scared and needing/wanting to leave.

Not everyone wants, or is ready, to buy. But EVERY parent wants to know they can enroll their child in pre-school or elementary school without wondering if they’ll be forced to leave after 12 months. Three to Five-year leases could fill the gap, creating a third category of family housing.

11/11

Long-term leases could be one of the most family-friendly innovations in market rate housing, particularly if paired with family-oriented designs. This is especially valuable in cities where the for-sale market has become out of reach for middle-income families.

10/11

A smaller, rental home is going to be lower monthly payment than buying, and when the family grows out of it … they can move! What’s missing in most urban rental markets isn’t just affordability or square footage. It’s security.

9/11

It ALSO means a family doesn’t need the bigger house. One of the biggest objections I always hear to the family floorplans I share essentially boil down to “What about older kids?”

8/11

So in practice, a well-structured five-year lease could offer nearly the same temporal stability as buying, without the upfront costs, downpayment, debt risk, or geographic inflexibility.

7/11

And the key part … first-time homebuyers, especially younger ones, rarely stay for decades. The median tenure for young first-time buyers is just 5 to 7 years. People move for jobs, more space, to be closer to family, etc all the time.

So it provides the same benefit

6/11

For a parent enrolling a child in pre-K, a five-year lease means they could reasonably expect to stay in the same neighborhood through third grade. That’s enough time to build friendships, get to know teachers and administrators, and avoid the trauma of an unexpected mid-year move.

5/11

Parents aren’t just looking for a house; they’re looking for a place to put down roots. And for that, time is what matters. This is where multi-year leases: 3, 4, or 5-year terms could be transformative. They give families the predictability they’re often told only comes in ownership

4/11