what does "dive apartment"mean?
Designed for the eager young women and men on a budget who were flocking to the city, the romantic label was intended to evoke the glamour and Bohemianism of the artist’s preferred mode of living. Studio was a “magic word,” as Anatole Broyard once wrote about his own dive apartment on Prince Street in the 1940s.

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!!!

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I see, thanks a million for both of you1

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KelliA is right. A 'dive apartment' in this text refers to an inexpensive, simple, possibly low-quality apartment.

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The term 'dive'  here is used as slang. In the USA (I can't speak for the UK or other places), a dive is a place that isn't fancy, is inexpensive, maybe even a little run down and probably not in the greatest part of town.  It used to be considered a negative term, but nowadays, not always, depending on the context in which it is used.

More commonly the term 'dive' is used to describe a bar or pub that is frequented by bohemian or alternative lifestyle clientele. Here is a good example describing dive bars where I live:

http://matadornetwork.com/nights/8-holes-in-the-wall-a-tour-of-austins-dive-bars/

Notice the writer in your passage says "young women and men on a budget ".  That gives you an indication that the apartment was in a low-rent neighborhood and most definitely  'studio' apartments are always the smallest and least expensive.

See: http://www.thefreedictionary.com/dive

a. Slang A disreputable or run-down bar or nightclub.
b. A run-down residence.

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This expression is usually referring to " Houses with a swimming Pool " Or " A Beach House " .

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