Honolulu Ranks #3 in U.S. for Micro-Housing — New Study Finds

from StorageCafe, May 2025

As housing costs continue to challenge residents across the islands, Honolulu has quietly become one of the top U.S. cities for micro-housing — with compact units offering a more affordable path to urban living in a state where space and supply are at a premium.

StorageCafe’s latest analysis of micro-housing trends across 100 major U.S. cities ranks Honolulu #3 nationally for its share of micro-units, underscoring the city’s growing reliance on smaller homes to meet big demand.

For this study, micro-units are defined as rentals smaller than half the average unit size in their state — in Hawaii, that means anything under 348 square feet.

Key findings for Honolulu:

• 11.6% of the city’s rental stock consists of micro-units — placing Honolulu 3rd nationwide.
• These compact homes rent for 25% less on average than conventional apartments — a meaningful margin in one of the country’s most expensive housing markets.
• While no new micro-units are currently planned, existing stock already plays a key role in addressing affordability and housing scarcity in dense, transit-friendly neighborhoods.

Micro-housing plays a unique role in Honolulu — not just as a real estate solution, but as part of broader efforts to address housing affordability, density, and access. This new data highlights how widespread compact living already is in the city, and why it continues to be part of the conversation around sustainable urban housing in the islands.

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