Tiny -- and affordable -- modular living spaces could soon become the latest real estate craze in the highly crowded city of New York.

Fifty-five micro apartments are being constructed in Manhattan to test whether New Yorkers are willing to follow the example of Tokyo and Mumbai. According to Bloomberg News, micro apartments at the new "My Micro NY" building will be only 250 to 370 square feet. Rents will range from $939 to $1,873. Currently, the average monthly rent for a studio is more than $2,000.

"One of the things that's being worked on now is modular construction, so prefabricated units that can bring down the cost of housing," Vishaan Chakrabarti of the Center for Urban Real Estate told Al Jazeera. "Higher density housing is actually cheaper to build per unit."

The organization predicts that the population of New York City will reach 9.2 million by 2040, but won't have a place to put all the new people. The city's demographics and housing options are also currently out of whack. Nearly half of the population is single, but studios and one bedroom apartments comprise a minority of housing.

Such factors make micro apartments an appealing solution, at least on paper.

Watch video, courtesy of Al Jazeera English, below: