There’s a new trend taking place across America. New apartment buildings are continually popping up, but they are no longer the affordable models they used to be. The vast majority of new rental properties are now focusing on high-end, luxury living.
These luxury apartments have caused average rent prices to increase, but who is affording over $2,000 for rent each month? With prices matching mortgages, this is an interesting trend to follow. Here’s how luxury apartment buildings are changing the scope of city living.
To afford a luxury apartment in most major cities, you would need to budget between $2,000 and $4,500 a month for rent. It might seem strange that anyone would pay such high costs when quality apartment homes are a mere fraction of the price, but more and more individuals are choosing to rent them.
Part of the reason this trend is booming is due to the fact that many who could purchase a home choose to rent instead. That demographic includes empty-nest baby boomers and double-income millennial households. Both demographics are increasingly attracted to the lifestyle these buildings provide.
From state-of-the-art fitness centers to concierge services and elaborate accommodations, both age groups are becoming accustomed to the finer things in life. These homes also place individuals in premier areas that are often trendy, amenity-rich, and near a thriving city’s core.
To learn more about the types of amenities these buildings offer, read more on www.hydesquare.com.
Despite America’s economy being on the upswing, many are still finding it hard to purchase a home. Millennials often have a hard time building credit and gathering enough cash for a down payment with the cost of student debt rising over 150% in just a decade. Whether this age group can afford a luxury apartment or not, they are certainly renting for a longer period of time than generations before them.
With millennials postponing home ownership, companies are quick to provide them an alternative while still cashing in on higher rent prices. At the same time, retiring baby boomers are trading in the hard work of home maintenance for a more relaxed and accommodated retirement.
This trend can be observed in both Charlotte, North Carolina, and several areas in Texas. In both states, retirees have flocked to luxury apartment buildings where their needs are met and upkeep is taken care of for them. This allows retirees to remain independent later in life, but also allows them to change their address if need be without the hassle of selling a property.
The chance to live in a high-end apartment, like the homes seen on websites, is something most individuals would prefer. However, it isn’t something that everyone can afford. The effect: middle-income renters are finding themselves priced out of areas.
These individuals are either moving to less ideal locations or putting up more money for rent than they can actually afford. Whether this trend will price everyone out, creating Beverly Hills-style locations across the country, or if affordable apartments will make a comeback remains to be seen.