If you have been on the hunt for an apartment in the past year, you have may noticed a strange trend of luxury apartments popping up all over the place. Even if you haven’t been on the search, you may have seen the signs all over the place pointing to the newest ones or the fresh construction of a development that seems to only have luxury housing. The strange thing is that many of these places seem far from the “luxury” that they are offering in the title. It seems that there is no legal ramifications or restrictions to using the word, so why not use it if you built a brand new apartment complex? You slap that word in front of your apartments and all of a sudden you can charge $300 a month over most market prices. I’m not sure if it’s the lack of housing in this area or the huge demand for housing – but it seems to be working.
These “luxury” apartments all follow a simple cookie cutter model:
- Stainless steel appliances
- Fancy countertops
- Raised ceilings
- Walk-in closets
- Small Balcony/Deck
- “Fitness Center” – Composed of a few elliptical/bikes/treadmills and some dumbbells that go up to 25 pounds
- Swimming Pool – One pool for a community of likely 250+ people
- Fire Pit and outdoor Seating – Maybe one or two fire pits and about 20 chairs, again for a community of 250+ people
- Game Room – This usually has two pool tables
- WiFi in the Lobby – You still have to pay for internet in your apartment anyways!
The above list isn’t perfect, but it gives you a general idea of what kind of features these places give you. And I’m not going to lie, all of these places do look very nice in all of the pictures and usually very well kept. But are all these so called “amenities” really that useful and do they justify the huge price premium? I really don’t think that most people are taking advantage of these things. Do nice countertops and raised ceilings add that much value to your daily life?
Every time I pass one of these complexes in a ridiculous location, I feel an irrational sense of anger. Who can afford to live here? And then if they can, who exactly lives here at these prices? I understand the appeal of living in the suburbs to some people but why in a crowded apartment complex? I know it comes down to personal taste, but there are homes in the area for rent at comparable pricing with more space and usually more rooms. You can always pay a landscaper to take care of things if that was your concern – especially if you were going to pay for a “luxury” apartment in the first place. And you still have to have neighbors in the apartment next to you, most likely of wooden construction. The sound is still going to travel!
I guess I can keep ranting all I want against these apartments, but there does seem be a demand as they keep building more and more. In fact near me there is another complex that is going up and taking rentals in advance, and it already looks like almost all of the 1-bedroom floor plans have already been spoken for with only three remaining. I just can’t fathom spending an extra $700 a month on an apartment for these simple features. They start at around $1800 a month for a 1 bedroom, but there are regular apartments – or apartments within houses for $1000 to $1100 a month in this same exact area. For the amount of money that is being charged I could live in the middle of a city.
For now I will just keep telling myself that the people renting these apartments are someone that does not save much money and is possibly living beyond their means. The facts seem to support this suspicion saying that “About half of all renters in the U.S. are using more than 30 percent of their income to cover housing costs, and about 25 percent have rent that exceeds 50 percent of their monthly pay. (The Atlantic)” Because everything else inside my head doesn’t make much sense! To me it seems like the word luxury essentially just means this is a newer building and we’re going to charge you more to live here.
Have you noticed any of these “luxury” apartment complexes popping up in your area? Or do you think this a specific phenomenon related to the housing demand in the Northeast? Am I missing the point of these completely?
lol, 25 pounds is where my weight set begins. Always geared toward women and cardio – the cheap stuff.
none being built in my area in my area, I live in farm country with farms literally on two opposite sides of my house. I think it all depends on the economic growth of the area. Milwaukee has had some luxury apartments pop up over the years, and I’ve seen a few. In reality these companies have economies of scale, they’re not paying $35 per square foot of granite or $1200+ for stainless appliances(which is cheap). They’re paying probably half for the granite and heavy discounts on all the appliances, and even if they didn’t, it’s really not that expensive in the long run of $700 extra per month. They make that back quick and then it’s profit from there on out. I’m more of a guy that just likes things updated with mid quality stuff. I don’t need stainless or granite. Planning on Laminate counters and a butcher block breakfast bar. White appliances.
Yeah, it doesn’t replace a real gym membership and you still pay for the premium. It’s probably more cost effective to buy your own treadmill or stationary bike if you’re really committed to being fit. And a lot of these developments have very nice streets for running outside as well.
I see nothing wrong with a slightly older built apartment without all these so called “luxuries” and I definitely agree with you on just having quality stuff that isn’t going to break. I’ve also noticed that while a lot of these places charge a ton for a studio or 1 bedroom, a 2 bedroom might only be $50 more a month. It’s like they are just setting a price floor for any sort of apartments in the area.
I’m seeing these a lot too. They say luxury, but it’s nothing really. And really, in a college town who has that kind of money to spend? They are going to get kid renters who max out their cards or have mommy and daddy paying for rent and mistakes are going to happen and payments will be missed, damages will ensue. Good luck to em. I’ll take my little studio unit away from all the undergrad mess.
I’m guessing you might be a grad student then, haha? It seems they are really trying to increase the entire rent market in certain areas and it’s frustrating. There is no middle ground really, there are some dirt cheap apartments that look terrible and then luxury apartments for a huge price premium. If a studio meets your needs that makes things even easier!
I just can’t justify paying that much for something I will never own. Maybe buying one as a condo would be better, but it is still ridiculously overpriced. Almost like paying for designer clothes just for the label. It’s crazy what people will do just to impress others. A house is a much better investment and that’s what I’m shooting for.
Condos sometimes aren’t great because you still end up with neighbors right up against you and many times HOA fees as well.
And while renting is not an investment, it can still be a good use of money – you are paying for a service that you require. If you don’t plan on staying put in area for more than 5 years, many times you will actually come ahead with renting.
Renting a huge “luxury” apartment just to impress people though is probably not the best idea, I agree with that.
I’ve heard tale and read a little about these luxury apartments; however, I live in a small city (population ~ 50,000) so these are not something that are part of the local real estate market. My guess is, like a lot of other products/services, these are meant to feed egos as much as anything … and I have no doubt they are succeeding.
I think that’s the frustrating part about these apartments, is that they do seem to be successful. I’m not sure if its people spending way too much on housing, not caring, or trying to show off. Everything says it will add more capacity to the rental market and push other prices down, but in areas where these things pop up it seems like everyone just raises the rent instead.