If there is a new apartment that props up, and you think that it is beyond your reach. Then, that very well could be the reality. You should not feel bad about it though. The reason why new apartment prices are high these days is because of an uptick demand for high-end places to stay.
So, if you are planning to look for a new place to stay, yet you are a bit short on budget, then it might be better for you to hold that thought for a moment.
Why The Luxury Apartment Trend?
Like most commodities, the law of supply in demand is at play here. There is a high demand for luxury apartments and thus the market responds to the need. The culprit of this phenomenon is not just one consumer group. In fact, there are at least two.
It should be apparent that their generation have not yet come to a screeching halt. The baby boomers still continue to influence the majority of the world today, especially financially. Much of the biggest industries still thrive on the old money that this generation has accumulated. So, the question is, what business do the baby-boomers have in renting and owning luxury apartments?
Well, one could simply say, that it has always been the plan. People who often reach their golden age plan to splurge their hard-earned savings on something a bit luxurious. And, we should not have to tell you the kind of income this generation is able to work with. Especially since most of them have become executives for the company they have worked with in a long time. In fact, they have become so common that real estate agents have devised a term to use on them which is the empty-nest baby boomers.
Although they do not have the same length of time to work with, millennials are certainly also part of the crowd that is driving the demand for luxury apartments. Being young means not necessarily buying a place to stay as most have not yet decided on where they are going to settle in the future. As you might expect, not every millennial is able to afford a luxury apartment. However, because they have now become the majority of the working population, the chances are there will be some who are bound to earn way more than others. And the way they usually edge out everyone else is by having more than one source of income. And this is usually income coming from their salary and income from their investments. Real estate agents call them the double-income millennials.
The reason why renters and buyers, especially the younger ones, are attracted to these luxury apartments can be summed into one word and that word is amenities. People who live in the big cities know how difficult it is to go across town because of the expected heavy traffic. If they can do the regular activities that would usually need a car ride right at their building, then they will be attracted to the opportunity.
The most common amenities are the exercise facilities. These buildings usually house one or two gyms, which are offered exclusively for the tenants. This is quite an attractive offer given how much health-conscious society has become. Of course, concierge and other services to buy basic goods and services like stores and laundromats are also part of the package of amenities, as well as pet centers. These centers include spots that cater for the needs of pets such as pet food shops, pet groomers, veterinarian clinics, and sometimes even recreation centers where owners can take their pets for walks. And finally, these luxury apartments offer opportunities of their tenants to socialize with each other. This is especially popular with older tenants who have lots of time to burn on their hands.
Of course, the most compelling reason for people to buy luxury apartments is the need to have a roof above their heads. Every investor worth his or her salt will tell you that it is wiser to invest in a home than rent in one, especially a luxury home at that. However, millennials nowadays may be running out of choices. Real estate prices have predictably gone through the roof due to how commerce and industries have often been placed in densely populated areas. This means young people have to rent an apartment because they really do not have that much choice.
Should You Rent A Luxury Apartment?
And now, going back to the main question. Is it worth it to rent a luxury apartment? Well, the answer largely depends on who you are. And more particularly, how old you are and how much is your income. If you are part of the older generation and feel like you are comfortable living the rest of your days in an apartment that you picked, then it should not be a problem. You probably deserve the luxury.
For the younger people, the answer can be a bit trickier. Sure enough, income is not going to be the main factor at play here. When you think about it, you would realize that most people who do stay in luxury apartments did not have any other choice. However, there are definitely valid arguments for and against renting a luxury apartment.
Apartments are quite likely much closer to everywhere else that you want to go in the city. Most city centers are densely populated especially in the east coast region of the United States. It could be impossible or at least extremely expensive to buy a lot and build a house like the old days. That activity is now done on the outskirts of cities, or just beyond. And given the utilities that luxury apartments already offer, it’s certainly something worth considering.