Mini-condos are becoming hot properties in today's market.

Small condominium units, usually located in downtown areas, are being offered and planned at projects throughout the country. Some are as tiny as 250 square feet — that's about as small as a residence can be.

The demand for these tiny condos is tied to economics. The unit prices allow more renters to enjoy the benefits of ownership, including the buildup of equity to eventually help purchase a larger home. In some cases, they can be a practical alternative for those who have been forced out of a previous home due to a foreclosure.

Some new owners of mini-condos hire an interior decorator to recommend furnishings, decorative accessories and colors that tend to maximize the appearance of their limited space.

In Los Angeles, the owner of the historic United Building (or State Theater Building) in the downtown district, plans to convert the space into 155 mini-condos, ranging in size from 304 to 1,000 square feet. The city recently passed new planning rules allowing the development of tiny living units, from 250 square feet in some cases.

In Seattle, a developer offers condos as small as 296 square feet.

"I think there's unmet demand for affordable construction in downtown areas," says developer G. David Hoy, who was quoted in a Seattle Post-Intelligencer article. "I also believe downtown needs more diversity."

The story also quoted one of the condo buyers: "I like having everything in one room. I just think it's a waste of money to have a lot of space you don't really need."

In San Francisco, 98 mini-condos are packed into the converted Cubix Yerba Buena building. They range in size from 250 to 350 square feet and are priced from $279,000 — a bargain in that city; the median home price is $749,000.

The project's architect, George Hauser, admitted his condos are too small for many people, especially families. He and local planning groups believe the so-called micro units represent a means of providing more first-time home-buying opportunities in a city where most prices outstrip most incomes, it was noted in an article from the San Francisco Chronicle.

"It's not the last place a person might own, but it's a great place to build equity and move up," Houser said. "You're in a small space with great amenities and are near the resources of the city."

In Hauser's units, the kitchen area includes a mini-sink, two-burner electric stove, a half fridge and microwave-convection oven. Appliances are stainless steel, while countertops are synthetic brown stone. The units include a wardrobe, but no closets.

Q: What do industry leaders think about the big government takeover of the GSEs?

A: The takeover of Fannie Mae and Freddie Mac, government sponsored entities (GSEs), was a major step in efforts to correct the current mortgage and housing problems. One objective of the action, placing the companies in separate conservatorships, is to reduce mortgage interest rates, which allows more consumers to finance the purchase of a home. That objective seems to be quite successful.

Most industry leaders strongly favor and support the action. Here is a sample of their responses:

"While it's unfortunate that we have reached this point, we are hopeful that the government's action will help to increase liquidity in the nation's mortgage markets and restore confidence in the global financial markets," said Jerry Howard, CEO of the National Association of Home Builders. "At this point, it's essential that government regulators and all parties involved in the nation's housing finance system work together to rebuild the nation's secondary mortgage market — a move that's absolutely vital to provide affordable mortgages for home buyers and help spur an economic recovery."

John Courson, chief operating officer for the Mortgage Bankers Association, made this comment: "I applaud this crucial step to ensure that Fannie Mae and Freddie Mac can continue to play their critical role of providing liquidity to the housing finance system. It provides Americans the opportunity for homeownership and affordable rental housing.

"This unprecedented step will provide confidence that the housing finance system will continue to operate without major disruption, and offers an opportunity for a recovery of the housing market."

Q: Are most destinations out of state when people move?

A: Most people who purchase and relocate into a new home stay within their same county, it was revealed in a report from the U.S. Census Bureau. During the past couple of years, about 39 million people moved in this country, and approximately 25 million of those individuals and families stayed in their own county.

About 7 million of those transitioning households relocated to a different county but stayed within the same state. Approximately 5 million moved to a different state. The rest came to the U.S. from foreign countries.

Regionally, the lowest moving rate was in the Northeast (9 percent), followed by the Midwest (13 percent), the South (14 percent) and the West (15 percent). The desire to own/live in a home with a better neighborhood that provides an improved lifestyle was the primary reason for moves. Other key reasons are family-related issues and employment.

To find out more about Jim Woodard and read features by other Creators Syndicate writers and cartoonists, visit the Creators Syndicate website at www.creators.com.

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