Efficiency Apartment Definition

An unfurnished one-room apartment is called and "efficiency" or "studio."


Efficiency apartments are popular options for single people who either are on a tight budget or do not spend much time at home. They are also a great choice for couples who have a home elsewhere but come to a specific area now and again and desire a private place to stay during those visits. Efficiency apartments are sometimes also referred to as "studio apartments," and their defining feature is that they comprise one room.


An efficiency apartment has all its living and sleeping space in one room and has a bathroom. It is sometimes referred to as a studio apartment and may include utilities in some instances.

Understand the Efficiency Apartment

An efficiency is a one-room apartment with a private bathroom. It may or may not have a closet. The one room is usually larger than a standard apartment bedroom since it needs to have separate areas for sleeping, eating and living. The room also houses a small kitchen, usually referred to as a kitchenette.

Get Utilities Included

In some cases, utilities are included in the monthly rent so there are no surprise utility bills. Many efficiencies in areas like San Francisco are from fairly recent renovations of warehouses and other commercial spaces, so they are often in very good condition. Because their space is so limited, there is not much to keep clean. Many landlords are willing to rent efficiencies on a monthly basis, but the monthly rent is usually higher than when the lease is for a longer period.

Expect Limited Storage Space

An efficiency may or may not have any closets, and because the space is so limited, there is very little room for storage. People who aren't minimalists who rent efficiency apartments might also have to rent self-storage units for some of their belongings. Efficiencies are not practical for couples or families who have to spend significant time in them. Since the space is small, clutter can be a constant challenge, so it is important to keep an efficiency neat and organized.

Efficiencies Aren't Always Cheapies

While efficiency apartments are often less expensive than regular apartments, there are exceptions. As in any real estate property, the location of the efficiency can increase the rental price. An efficiency in the heart of downtown San Francisco, for instance, might be more expensive than a one- or two-bedroom apartment in Oakland. Also, large cities like San Francisco offer high-end efficiency apartments which are sometimes referred to as "luxury efficiencies." Even though these spaces are still one room, the room could be 1,000 square feet or more, overlook the waterfront (located in Nob Hill, for instance), have amenities like skylights, loft space and a fireplace or come fully furnished. These efficiency apartments are targeted at people who have high-end homes outside San Francisco but desire a "small" city apartment for frequent overnight visits. Older efficiency apartments, such as those that cater to students in university areas, tend to be less expensive.

Consider Efficiency Challenges

Efficiency apartments may be on the top floor of a building and accessible only by stairs. These apartments are referred to as "walk-ups." Stairways and doorways may be narrow and not able to accommodate certain sizes of furniture and mattresses. In older efficiencies, electrical wiring may not have been updated, and may not be appropriate for using computers or other types of equipment.

About the Author

Micah Rubenstein


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