In a city known for its compact living, New York City designers are rising to the challenge of maximizing space in increasingly smaller apartments. Over the past decade, average apartment sizes have shrunk by up to 10 percent, prompting designers to get creative and find innovative solutions. From tiny duplexes to windowless bathrooms, designers are transforming these small spaces into functional and stylish abodes.

Greta Hansen and Shan Raoufi, the duo behind architecture firm Wolfgang & Hite, have successfully renovated their 200-square-foot Lower East Side apartment on a modest budget of $10,000. Despite the constraints, they managed to create more space by installing custom shelving and seating, along with a sleek wooden bench that snakes around a corner dinette. The first floor also features a secret secondary bedroom, ingeniously tucked away to accommodate out-of-town visitors.

Ted Baab, an architect operating his own practice, took on the challenge of revamping a windowless and cramped 75-square-foot bathroom in the Catskills. Dubbed the "Inside-Out Bath," Baab transformed the space into a 1930s Machine Age inspired room. A large triangular wall volume houses all the mechanicals and plumbing, with fixtures and built-ins emerging from it. With a focus on accessibility and safety, Baab incorporated a full-wraparound grab bar and LED nightlights. The design also allows for easy cleaning, making the bathroom both functional and visually enticing.

Designer Nick Poe tackled a top-to-bottom renovation of a barely 400-square-foot Noho apartment with a budget of $150,000. The aging space underwent a complete transformation, with Poe replacing the uneven floors and adding decorative archways and molding to give the apartment a period-style effect. By removing unnecessary walls, Poe created a more open floor plan and devised a cozy sleeping nook, complete with a platform bed and hidden curtain to provide privacy when needed.

These innovative solutions prove that small spaces can be both aesthetically pleasing and highly functional. Designers in New York City are finding ways to optimize every inch of space, making the most of limited square footage. With rising housing costs and a desire for efficient living, these creative design solutions are becoming increasingly important in the ever-shrinking dwellings of the city that never sleeps.