When New York City Mayor Michael Bloomberg announced in July that the city was inviting developers to submit proposals for the adAPT NYC  micro-unit project, news started buzzing in other markets around the country that 275- to 300-sq. foot apartments were a hot trend for Gen Y renters on a budget.

In cities like New York, where rents average $1798/month  and there are 1.8 million households with only one or two occupants, the trend makes sense. S imilar apartments are currently being constructed in Boston and San Francisco, as well.

But if your contractors and renters think there’s not a lot to do with that little amount of space, Swedish retail-giant Ikea wants to change their minds. Now the store’s location in the Brooklyn, N.Y. neighborhood of Red Hook is modeling a micro-unit that is 391 sq. feet and fully functional. It features a one-bedroom, one-bath apartment with plenty of built-in storage space and a spacious-looking kitchen with glass cabinets.

(Check out these photos of how Ikea designed its micro-unit onInhabit)

Are micro-units being developed where you are? Do you have ideas on what developers could do with that tiny amount of space? And what do you think of Ikea’s micro-unit design? Leave a comment.