Though incomprehensible to many people, and criticized as unhealthy by some, micro-apartments provide another tool to combat growing apartment unaffordability in the world’s most expensive cities.

With creative design and proper standards, small spaces can be liveable, healthy, and more affordable. According to the International Monetary Fund (IMF), Australia ranks as the third-least affordable country in the world. Sydney, for example, with housing prices having risen 14.3 per cent in 2013, is projected to add an…