NEW YORK (January 22, 2013)--New York has legions of residents living in tiny apartments and predictions that population and rents will keep climbing are challenging architects to design apartments no larger than a one-car garage.

An exhibition that opens Wednesday at the Museum of the City of New York features a furnished 325-square-foot studio that incorporates the latest space-saving designs, including a TV that slides away to reveal a bar.

The city plans to construct an apartment building of so-called micro-units in Manhattan next year, offering affordable options for singles and empty nesters.

If successful, it could ultimately overturn a requirement that new apartments be at least 400 square feet.