What is an efficiency apartment? (2026 Guide)

If you’re preparing to relocate, you are likely considering a variety of different living arrangements. Many people who move to a new city alone opt for a studio or an efficiency apartment. After all, these smaller units are usually more affordable than larger apartments.

But what exactly distinguishes an efficiency apartment from a studio? Although efficiencies and studios have a lot in common, there are some key differences that can make or break your lifestyle.

But what exactly distinguishes an efficiency apartment from a studio? Although efficiencies and studios have a lot in common, there are some key differences that can make or break your lifestyle.

Studio apartments are common around the world, but efficiency apartments are primarily a North American housing term. You’ll most often see them in large U.S. cities such as New York, Los Angeles, Chicago, and Washington, DC. In other countries, similar units may instead be called micro-apartments, compact studios, or bedsits.

That means if you’re planning to move to a medium-sized city—or even a large but less dense metro area—you may find fewer apartments specifically labeled as “efficiencies.”

Whenever you’re planning a move, it’s important to do plenty of research. In addition to exploring different cities and neighborhoods, you’ll also need to decide which type of housing fits your lifestyle.

Here’s our complete guide to efficiency apartments, including the differences between an efficiency and a studio. We’ll also cover some of the pros and cons of renting one so you can decide if this type of housing is right for you.

What is the difference between an efficiency apartment and a studio apartment?

Studios and efficiency apartments have a lot in common. In fact, they’re so similar that the terms are sometimes used interchangeably in apartment listings.

Both studios and efficiency apartments typically have single-room layouts, where the bedroom and living area share the same space. Many—but not all—also have a separate enclosed bathroom.

If you live in either type of apartment, your sleeping and living spaces are combined. Of course, it’s still possible to create separate “zones” in the room using bookcases, curtains, folding screens, or room dividers.

The main difference between a studio and an efficiency apartment is the kitchen.

Studio apartments usually include a full kitchen, which typically features:

• A full-size refrigerator

• An oven with stovetop burners

• A sink and basic counter space

Efficiency apartments, on the other hand, generally have kitchenettes instead of full kitchens.

A kitchenette may include:

• A mini fridge

• A microwave or toaster oven

• A small sink

• One or two electric burners or a hot plate

Because of the smaller kitchen setup, efficiency apartments are usually slightly smaller overall than studio apartments. The bathroom may also be more compact.

For this reason, efficiency apartments are typically cheaper than studios, especially in expensive urban housing markets.

Benefits of living in an efficiency

There are several advantages to choosing an efficiency apartment.

Lower rent

The biggest benefit is usually cost savings. Efficiencies are often located in central neighborhoods but rent for significantly less than one- or two-bedroom apartments.

For renters trying to live close to downtown areas or major employment centers, an efficiency can make an otherwise expensive neighborhood more affordable.

Minimalist living

Efficiency apartments encourage a simple, minimalist lifestyle.

Because the space is smaller, you’re less likely to accumulate unnecessary furniture or clutter. Many renters choose multifunctional furniture such as:

• Murphy beds

• Sofa beds or futons

• Fold-down desks

• Storage beds

This approach can save both time and money when furnishing your home.

Lower utility bills

Smaller spaces typically mean lower utility costs. Heating, cooling, and electricity bills are often lower than they would be in a larger apartment.

Ideal for short-term living

Efficiency apartments can also be a good option for:

• Students

• Interns

• Remote workers

• Digital nomads

• Professionals relocating to a new city

Many furnished or flexible rentals today are designed with these renters in mind. That being said, you can also save time and money on tricking out your new apartment by choosing a furnished rental over a year-long lease.

Downsides to living in an efficiency

Of course, efficiency apartments also come with some drawbacks.

Limited living space

The most obvious downside is the lack of space. Efficiencies are often similar in size to a standard hotel room.

While some studio apartments include loft areas or larger layouts, efficiencies are usually just one compact room plus a bathroom.

Less privacy

Efficiency apartments are best suited for single occupants.

Living in such a small space with a partner or roommate can quickly feel cramped and may put strain on relationships.

Limited cooking options

If you enjoy cooking, the kitchenette may feel restrictive.

Without a full stove or oven, you may be limited to simple meals. Some efficiency apartments only have one burner or a microwave, which can make more complex cooking difficult.

Is an efficiency apartment right for you?

Choosing an efficiency apartment depends on your priorities.

If you rarely cook and prefer dining out, the savings on rent might allow you to enjoy more restaurants, cafes, and nightlife in your neighborhood.

However, if you cook frequently or need more storage space, you may be happier in a studio or one-bedroom apartment.

Efficiency apartments are generally best for people who:

• Live alone

• Own relatively few possessions

• Spend a lot of time outside the apartment

• Prefer a central location over extra space

How to find a great efficiency apartment

Before starting your search, make sure efficiency apartments actually exist in your target housing market. They are most common in large urban areas with expensive housing markets.

Because the terms “studio” and “efficiency” are often confused, it’s a good idea to search for both types of listings.

Some landlords even label efficiency units as:

• Studios

• Micro-apartments

• Junior studios

• Compact studios

They may do this simply because those terms are more familiar to renters.

If you tour an apartment that clearly has only a kitchenette but is priced like a full studio or one-bedroom, it may not be the best value.

Where to search

Today, most apartment hunting happens online. Popular rental platforms include:

• Apartments.com

• Blueground

• Zillow Rentals

• StreetEasy (especially in New York City)

• Craigslist

• Facebook housing groups

When browsing listings, look closely at the photos to determine whether the unit has a full kitchen or just a kitchenette.

A quick hint: if you see a mini fridge instead of a full-size refrigerator, the apartment is very likely an efficiency.

Putting it all together

Whether you choose an efficiency apartment or a studio for your next home, the best option ultimately depends on your lifestyle and priorities.

Efficiency apartments can be a great solution for renters who want:

• Lower monthly rent

• A central location

• A simple, minimalist living space

However, if you value extra space, privacy, or a full kitchen, a studio or one-bedroom apartment may be a better long-term choice.

Whether you opt for an efficiency apartment or something a little bigger, flexibility makes things a whole lot easier. Blueground’s furnished rental apartments around the world are ideal for digital nomads and world explorers. After all, don’t you want to rent on your schedule and not at a landlord’s convenience?

All of our turnkey apartments in Asia, Europe, the Middle East, and North America let you feel at home and free to roam. Our stylish homes have everything you need to live well, from appliances and kitchenware to furniture and linens.