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What Is an Efficiency Apartment? A Renter’s Guide [2025]

If you’ve ever come across the term efficiency apartment while apartment hunting and had no clue what that meant, or how it was different from a studio or one bedroom, you’re not alone. An efficiency apartment is a small rental unit where the bedroom, living room, and kitchen are combined into a single space, with limited amenities. The goal is to maximize function in a compact layout. Efficiency apartments usually include a private bathroom, but the kitchen area often has fewer appliances than you’d find in a studio, for example, just a mini-fridge, microwave, or two-burner cooktop instead of a full-size kitchen.

These apartments are popular among renters who want a budget-friendly place to live, especially in large cities where space is at a premium.

Key features of an efficiency apartment

While floor plans and layouts vary, most efficiency apartments share a few common traits:

  • They have just one main room. This space serves as your bedroom, living room, and sometimes dining area.
  • They often have compact kitchenettes. Instead of a full kitchen, you may have a kitchenette with small appliances and minimal counter space.
  • They have private bathrooms. Unlike shared housing, efficiency apartments typically include a bathroom just for you.
  • They’re small, with minimal square footage. Most efficiency units are under 400 square feet, though exact sizes differ by city.
  • Rent is typically more affordable. Because they’re smaller, efficiency apartments usually cost less than studios or one-bedrooms.
Credits: iStock.com/Madhourse

Efficiency vs. studio apartments

While efficiency apartments and studios are quite similar, there are a few subtle differences between the two, such as:

  • Size: Studios tend to be larger than efficiency units, at around 500 to 600 square feet.
  • Kitchen: Studios usually have a full kitchen, while efficiency apartments often have a kitchenette.
  • Price: Efficiencies are usually the most affordable option since they’re smaller and have fewer amenities.

Think of an efficiency apartment as the minimalist version of a studio. If you enjoy cooking or need more space for furniture, a studio might be a better fit for you. If affordability and simplicity are your priorities, an efficiency could be a good option to consider.

Pros of living in an efficiency apartment

  • Lower rent. A smaller space can mean lower monthly rent, which can help stretch your budget for other financial goals and priorities.
  • Lower utility bills. With less square footage to heat or cool, there’s a good chance you can save on electricity and gas.
  • Easy to maintain. With less space, you have fewer areas to clean, leaving you more time for other things.
  • Central locations. Many efficiency apartments are found in business hubs and city centers, where larger units are harder to find or more expensive.
  • Minimalist lifestyle. With just the essentials and no frills, the small space can help you live simply and prioritize other things.

Cons of living in an efficiency apartment

  • Limited space. Storage, furniture, and entertaining guests can be challenging.
  • Small kitchens. If you cook often, the lack of a full stove or oven could be frustrating or prohibitive.
  • Less privacy. With no separate rooms, your sleeping and living areas are always combined, and there is no transition between functional living spaces.
  • Not ideal for long-term growth. They might feel cramped if you acquire more belongings or share the space with a partner or pet.

Who should consider an efficiency apartment?

Efficiency apartments may be best suited for:

  • Students, who tend to find these apartments budget-friendly and easy to maintain, are able to focus on classes.
  • Young professionals, who might find them a practical choice if they spend more time outside the home than in it.
  • Frequent travelers who are transient, have few possessions, or require temporary housing, and are aware that they only need the bare essentials at lower costs.
  • Minimalists. Renters who thrive on a clutter-free lifestyle, or want to downsize and live more simply, can adapt well to an efficiency unit.

Efficiency apartments are going to be less ideal for families, couples needing privacy, or renters who like to entertain regularly.

Tips for living comfortably in an efficiency apartment

If you decide an efficiency is right for you, these strategies can help you maximize your space.

  • Invest in multipurpose furniture. Look for futons, Murphy beds, or expandable tables.
  • Use vertical storage. Shelves, wall hooks, and tall cabinets can save valuable floor space.
  • Keep things organized. Regular decluttering is key in a small unit.
  • Cook simply. Small appliances like air fryers or Instant Pots can make up for limited kitchen setups.
  • Make it cozy. Use lighting, rugs, and decor to make the small space feel warm and inviting.

How to find an efficiency apartment

You probably won’t find the term “efficiency apartment” listed frequently on apartment search sites, so you may need to get creative when searching. Try these approaches:

  • Use search filters for smaller units. Look for listings under 400 square feet.
  • Search for studios too. Some landlords use “studio” and “efficiency” interchangeably.
  • Check amenities closely. Read the listing to see if there’s a full kitchen or just a kitchenette.
  • Look in urban areas. Efficiencies are most common in big cities where space is tight.

If you’re using an apartment search platform, make sure to filter by square footage, price, or keywords like “efficiency” or “micro-apartment.”

Tips for living in an efficiency apartment

An efficiency apartment could be a good fit if you don’t mind a small living space. These tips can help you make the most of your rental experience.

  • Plan to live on your own. Efficiency apartments can get cramped with more than one person. If living alone doesn’t sound appealing, consider a small pet for extra company, or look into having roommates in a larger apartment.
  • Invest in quality furniture that has multiple purposes A low dresser can double as a coffee table, or a kitchen table can double as a work-from-home office. Choosing a daybed could serve as a couch or a second seating area, or invest in a Murphy bed you can put up during the day.
  • Look for vertical space solutions. When floor space is limited, the wall height can be an advantage. Floating shelves can be used for additional storage, or tall, skinny bookcases can store books along with personal items. Adding height gives the space more visual interest, and can even make the room feel larger. Be sure to review your lease or ask the property manager before drilling into the walls.
  • Put mirrors on the wall. Mirrors can make spaces seem larger. If your efficiency apartment is lacking windows, placing a mirror along the opposite wall will reflect light and give the appearance of more space.
  • Measure everything before buying. Take measurements before investing in furnishings to ensure all pieces fit comfortably in the unit.
  • Get a cookbook dedicated to kitchenettes. Whether you have just an air fryer, toaster, or stovetop, make the most of your kitchenette with recipes that can be made in smaller spaces with fewer kitchen amenities.

The Bottom Line

An efficiency apartment is a compact, budget-friendly rental where your living, sleeping, and cooking areas share one space. While the small size and limited kitchen setup aren’t for everyone, efficiencies can be a wise choice if you want to save money, live simply, or enjoy the convenience of a central location.

By knowing what to expect and planning for the lifestyle adjustments, you can make an efficiency apartment feel like the perfect home—even in less than 400 square feet.

FAQ: Efficiency apartments

What is the difference between an efficiency and a studio apartment?

An efficiency apartment is usually smaller and has a kitchenette, while a studio is larger and often has a full kitchen.

How big is an efficiency apartment?

Most efficiency apartments are under 400 square feet, though exact sizes vary by city.

Do efficiency apartments have private bathrooms?

Yes, most efficiency apartments include a private bathroom, even though the living and kitchen areas are combined.

Are efficiency apartments cheaper than studios?

Yes, they tend to be the most affordable rental option because of their size and limited amenities.

Can two people live in an efficiency apartment?

It’s possible, but space can feel very tight. Efficiencies are generally best for single renters.

Are efficiency apartments furnished?

Some are, especially in large cities or buildings geared toward students and professionals. Always check the listing details.

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