The primary issue with bedrooms being small is when you have 2-3 people sharing an apartment. Sometimes you get annoyed with your roommates and just want to hang out alone in your room for privacy. Having a 7X9 box for a room becomes an issue then.
People will tolerate that sort of thing in Manhattan but in Chicago we're just not there yet.
I suspect that as rents go up over the years, that will change. Otherwise we will have to tear down all of our prewar building stock--and nobody wants that. Brand new construction will charge premium rents, but those who want a bargain will have to give up some space and live in this older building stock. It is precisely for this reason that rising rents and gentrification are a good thing--it continues to allow investment in these century old buildings.
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