There are more people coming here, and the only way to solve the problem is people are going to have to start taking up less space.

Jeremiah Adler, founder and chief executive of Up(st)art, which leases property in California, then adds bunk beds or stacked, enclosed "sleeping pods," and rents it out for between $695 and $775 a month in neighborhoods where most studios start at $1,000 a month. "This is the future," he says.