Why So Many Luxury Apartments Are Popping Up In The U.S.

An apartment building boom is unfolding in cities across the U.S. Many of the new units come with "luxury" amenities, like pools and fast-access to transportation. Experts say the uptick in supply is welcome news, but won’t ease rent inflation anytime soon. As a result, many cities remain stuck in a price-elevating housing shortage. Washington lawmakers are now scrutinizing regulations that slow the pace of homebuilding, in an attempt to slow rent inflation.

Chapters:
0:00 — Introduction
1:09 — Chapter 1: "Luxury"
5:42 — Chapter 2: Policy
9:55 — Chapter 3: Increasing supply

Produced by: Carlos Waters
Additional Production: Andrea Miller
Animation: Christina Locopo
Supervising Producer: Lindsey Jacobson

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Why So Many Luxury Apartments Are Popping Up In The U.S.

[djelliott]

Another big issue is the word LUXURY has been redefined and dumb down over the past few decades. You have regular standard apartments and homes in my city that they call luxury now as an excuse to raise prices. How can your apartments be considered luxury with no security on site, no gate and no workout center smh.

[DivaViews]

I am over it. I don't need a dog spa and a saltwater pool, I need to be able to buy groceries and pay rent in the same week!

[wildcatste]

As so many others have already noted- “luxury “ often means things look nice but are actually pretty shabby. I should not be able to hear my neighbors talking with their inside voices.

[mpricemsw]

I say this almost every day - I don't want a "luxury" apartment. Just a basic apartment to meet basic needs. But everything is labeled "luxury" and priced accordingly!

[dznrboy]

just because it's a new building doesn't mean it's luxury. I've seen this in my city, new rentals are marketed as "luxury" but are just basic apartments it's just a huge scam.

[lightbringer]

I live in Atlanta Georgia, and I see these 'Luxury' apartments popping up everywhere. Of course the builders make a giant structure out of plywood before slapping on 'luxury' hardwood and granite countertops to justify the premium pricing. These developers build em cheap, and sell em steep!

[CdEyes]

Have known a couple of friends who ended up in some of these luxury apartments and they were not worth the money they were asking for. Things constantly broke in the apartment, the walls began to crack after about a year, elevators would constantly be out of service, walls and ceilings were super thin so you can hear people walking around and talking regularly and generally getting a parking pass for guests in some of these places was an absolute nightmare. It's all an illusion

[jsaichek]

It's wild to me that the first criterion they used to define luxury was access to public transportation.

[GalaxyFur]

And this is why a record number of people are still living with their parents despite even working full-time jobs. Many college graduates included.

[nathanjames]

I live in Washington, D.C., and I can attest to how utterly ridiculous the housing market is out here. I make over six-figures, work for the federal government and as a single guy, I can barely find affordable housing. There's either luxury housing that is $3000 a month or subsidized apartments that you cannot qualify for unless you make less than something like 40k annually. Anyone who is "technically" middle class is pretty much priced out of the market. You want to buy a house? Houses start at one million dollars for an old crappy house, it's awful.

[InnocentFred-hnfp]

Another reason it's less likely to happen that way is that, despite how everyone is freaking out and declaring the crash, there is already an excessive amount of demand waiting to absorb it. Nobody, at least not the general public, predicted this in 2008, as I'll explain below. It was indicated in the previous reply that the ownership rate peaked in 2004. We previously peaked in the second quarter of 2020, and as of right now, we are at the median level. It dropped by 3% over a 4-year period, from 2008 to 2012, and will be 65 instead of 68 in the second quarter of 2020.

[donnaallgaier-lamberti]

I live in SW Michigan. I am a 72-year-old senior married to a 77-year-old disabled man. Five years ago when we downsized and left our single-family home on the country, I wanted to move to downtown Holland and live in a high rise for low maintenance and walkability (my husband no longer drives.). I found just three apartment buildings to choose from and only two of them had available condo's and both were the size appropriate for a single person - not a couple (one bedroom/one bathroom). The condo's monthly HOA fees averaged $400.00 a month and only one had basement parking. Now, five years later there are two more luxury condo's being built building. One of them runs $7, 000 a month!!

[TheXZ]

the problem of these so called luxury apartments is they look cheap and probably won't last long before starting to degrade

[Ms_Smith]

This is just another excuse for them to charge more for rent. We don’t need luxury Apt. we just need proper affordable housing

[CatEyedGoddess]

When you hear a neighborhood has gone through significant changes over the years. That just means they’ve pushed out the middle to lower income residence by pricing them out. In other words, they Gentefied the neighborhood.

[soo__Suave]

There is no such thing as a "Luxury" apartment. Space away from people is the real luxury.

[OurLadyLaLa]

I too lived in a luxury apartment that that had thin walls. My roommate had a leak in her ceiling that ruined her bed, a year later the other side of the building sunk into the ground from water damage to the foundation ❤

[guitargod]

The only difference between a luxury apartment and a regular apartment is location and some nicer finishes like nicer flooring and countertops, shower, and faucets etc. It's really not worth the extra money as the basics are the same it's just a little bit nicer but they charge a premium price. It's just another way to get more money out of you.

[robin]

"Luxury apartments mean exorbitant rents. Pets peeing in the hallways, loud music at all hours, marijuana wafting through the air ducts, appliances not working, cars being side-swiped in the parking garages, packages being swiped. Doesn't sound like luxury to me.

[komyn]

I literally moved into a DC area apartment when this video was first published. My income is just outside of that 40% who can afford these apartments, and it *still* a struggle for even me to find a place. I don't mind living like a college student, so it worked out in the end, but when my $2, 200/mo apartment is the only affordable option for the area.... I really worry about those who don't earn as much as I do.