I like the idea, but it falls down for me when you mention down town etc. The land is so in demand down town that the price per square foot of dirt, when a 40 story building is stacked up on it, is tremendously valuable.

This would be a fantastic idea around universities/colleges or anywhere requiring cheap temporary housing. Investors would scoop them up if the price was cash flowing out of the box given the rental market. By locating them in high demand areas, the demand is built in.

We know that the value of housing/condos increases exponentially with size and luxury. Based on downtown prices for condo’s here in toronto a 950sq foot recently listed fro $500k, while most 650sq feet list for 300k. From the developers vantage point, they would rather create nicer, slightly bigger units to maximize the land’s value rather than sell economy condos when prime land (downtown) is being considered, which is why downtown economy condo’s likely would be a tough sell.

A scenario where i could see both developers and end users coming together would be land slightly off the beaten path and in under developed areas.

Some of the new condos going up in the former Regent Park are built as economy condos; nothing fancy but it gives residents pride of ownership.

As a complete aside, big law firms have “sleep rooms” for their associates; typically small internal offices that have a bed- more a bench- and nothing else (they don’t show your those offices on the firm tour!). Yeah, pretty sad comment on the state of associate life.

the idea’s not that wacky though. i’m sure you see 400 sq ft condos (new) in most big cities in canada. they’re not made economy though, they likely have some pretty nice features.
a lot of canadian cities wouldn’t allow a utilitarian/gulag type building in their bustling and growing downtowns. it’s got to at least look good.

i’d have no problem in a 400 sq ft condo, as long as the finishes and details were there.

perhaps in TO or vancouver you get these ultra luxurious condos with concierges, but out here in alberta, there’s maybe one or two buildings that have that.