Mayor Michael Bloomberg on Monday announced a competition aimed at challenging developers to come up with designs for so-called micro apartments of between 275 and 300 square feet.
The mayor says the new, smaller, affordable apartments would be marketed to young, single people willing to live on a smaller scale.
They will be built at a city-owned space on East 27th Street in Kips Bay.
Bloomberg says more than half the people in the city live in one or two-person apartments, but there isn't enough housing for them.
"There is a huge shortfall of studio and one bedroom apartments in the city and this we think this is one way to create more of them and to make more of them more affordable," Bloomberg said.
The city will have to waive zoning regulations put in place to avoid crowded tenement conditions.
The deadline for proposals is September 14.