In 2012, 52% of properties built were high-end apartments. In 2018, this number had risen to a whopping 87%! What makes a luxury apart so, well, lux? Apart from a hefty price tag, updated finishes, and a pretty exterior, luxury apartment buildings are made so fancy because of the availability of on-site amenities. Zillow’s recent consumer housing trends report revealed the most popular luxury amenities. Scroll down to see what amenities luxury apartment buildings are outfitting their communities with, and why these hot amenities.
Why are there so many luxury apartments?
Growing trend of luxury apartment buildings
While high levels of student debt, concern about down payments, and the need to stay flexible to employment options, means that renting has increasingly become a viable option for high-income. However, because of the influx of luxury apartment buildings, many builders, managers, and landlords
Individuals over 60 are poised to take over the lion’s share of the rental market. For many of these renters, renting provides a level of affordability and hands-off living that a house simply cannot. However, other renters are hoping to splash out a bit more cash to secure a unit with all the amenities. Older renter households have increased faster than older household owners –43% versus 31%. Renters over 60 are expected to make up over a quarter of the renting market in 2025, and, in 2035, they’ll make up over a third. Luxury apartment buildings with a variety of different amenities at renters’ fingertips can successfully woo older renters and provide them with an appealing level of luxury living.
Related: Renters over 60 Set to Dominate the Market
Top 5 Most Desirable Luxury Amenities
Fitness center or gym
Gym memberships, treadmills, and stationary bikes are expensive, and having an in-building gym to come home to is a big relief. And, for residents who work long hours or Looking to keep fit at all hours of the day? Fitness centers or gyms are one of the most In our database of over 7 million off-MLS listings (all with no co-brokes attached), we often come across buildings equipped with gyms and fitness centers (and even yoga and spin studios!).
With the growing popularity of working remotely and Gen Z’s entrepreneurial drive, work comes home a lot. Considering this, larger co-working spaces are huge draws for many renters who crave a common space to work outside of their apartments. Co-working spaces can also allow and the ability to get out of their apartment and even meet some fellow residents.
Hot tub or pool
What’s better way to relax after a long day at work than a dip in the pool? Renters in warm climates will appreciate the opportunity to cool off, and renters in cold climates will love getting cosy and toasty in a hot tub.
Movie theatre/ rec room
Don’t want to deal with the extra expense of pool cleaning? A movie theatre and a rec room are great spaces for residents to unwind, meet each other, and
…and another amenity we’ve been tracking!
Pooch Friendly Spaces
Having a pet friendly apartment is a huge bonus for many renters hoping to stay with (or adopt!) a furry friend. However, doting pet owners will be eager to see luxury apartments that have on-site dog parks or dog grooming studios to spoil their pooches.
Of course, nothing beats tried and true favorites like in-unit laundry, dishwashers, and AC!
Extra amenities are super appealing for renters looking to love in a community with all the bells and whistles, but renters of all price points favor these important amenities.
Typically, buildings with these high-end luxury amenities are built by large scale property developers and managers. How can small landlords compete? Good news. While these luxury apartments might sweeten the deal for apartment-hunters, most renters list more commonly-found amenities— in-unit laundry, dishwashers, and AC— as their most desirable amenities.And, nothing beats being in the correct price range!
Do we need more luxury apartments?
Here’s the thing about renting: people of all socio-economic backgrounds do it. Luxury apartments are great for those have some extra cash on hand, but what about low-income renters? For many, renting still remains the most economically savvy option; however, sky-high rent prices and apartments decked out with amenities aren’t doing these renters any favors. For example, Miami’s high-rise luxury apartments struggle to find residents who make enough to live in them, and their high prices have effected the pricing of apartments all across the city. As a result, the Magic City is facing a serious affordability crisis—6/10 Miami residents spend more than the recommended 30% of mostly income on their rent. Recently, there has been some efforts made to alleviate the affordability crisis. New plans have been unveiled to build 150 new affordable rental units and renovate another 150 existing affordable units.
How can Real Estate Agents take advantage of these amenities?
Don’t overpromise for your client, but do overdeliver. Don’t guarantee that you can find your client that you’ll be able to find them a in-budget luxury unit with a hot tub, dog walk, and great co-working space. Instead, if your client mentions that they are looking for a dog-friendly apartment, perhaps put an apartment that has a dog walk on your list—even if the unit doesn’t have the square footage they were hoping for. If you’re in a location where
Also, make sure that you renter knows the amenities that are in the building! At your showing, make sure that your client knows the excellent amenities of the apartment, and, if possible, show them the amenities in real life. This is especially important if the apartment is a little bit above your client’s price range. A client might be willing to spend another 75$ a month to live in a community with a 24 hour gym, or another 25$ a month to live in an apartment with a dish-washer.
Ready to make rentals an integral part of your business plan? We think that’s a great idea—after all, rental transactions take place in a much quicker pace then home sales transactions, and are a great way to access first time homebuyers. To learn more about the Rental Beast platform or to request a no-obligation demo visit Rental Beast for Real Estate Agents.