First and foremost, it is reasonable for micro-condo to exist in market since it is market itself which creates it. Toronto is a cosmopolitan city like NYC and Tokyo, so the micro-condo will success and that is what some customers really want.

The existence of micro-condo proves that the demand for housing is essentially the demand for function of housing but not the space for housing. People’s satisfaction will not be affected much if they just have smaller space to live but enjoy similar facilities. We can even conclude that the utility per dollar people spend is higher for micro-condo as they pay less to it.

The author mentioned the problem of opportunity cost while it is hard to quantify it indeed. Each individual has own evaluation of this trade-off.

On the other hand, we should know that the market segment for micro-condo is not as large as traditional housing. It will raise problems as housing is a type of goods that we cannot re-produce it when we find there is excess supply or any other problem exists. Consequently, the market research for the demand and type of demand is paramount is this case.

Reference:

Sara, Da. “The Market will Eventually Tell….” Jia Sheng (Sara) Da’s Blog. N.p., 6 Oct 2013. Web. 10 Nov. 2013.