Why So Many Luxury Apartments Are Popping Up In The U.S.
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- เผยแพร่เมื่อ 15 พ.ค. 2024
- 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.
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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.
Literally anything new that's clean and modern and isn't falling apart is called "luxery" now even though it's using cheap AF and faux stuff but they still jack the prices
And also, they add fancy rendering with some fancy furniture and stuff that you obv don't get with the place so it doesn't make it any better but gives you the perception of it
But that shouldn't be an issue for people like us right? That actually know what true luxury is?
@@ssj2camaro21 For real, if you know luxury you wouldnt be caught dead in those places. It's like those places that sell "fancy" clothes and it's in the ghetto and in some back alleyway and people think its actually fancy...like pleeeease
100%
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!
Agreed!
I personally feel the need for a dog spa for my pet.
@@jkim-ph1ds You probably let your dog lick your face and sit it’s unwiped butthole on your couch/bed too
Most of these luxury apartments don’t even have that, lol.
Lol I got a dog spa and a heated salt water pool…but thin a$$ walls. 😑
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.
they don't even look nice
Exactly! Every argument.
More power to the landlords, the idiots pay the prices
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!
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.
But they have tinted paint and mini blinds!
well they do have "luxury" prices
@@dannnyyang 😢😮
this yes
Yep. Your neighbors also get to live for free, in tents in the side of the road
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.
Become a digital nomad and move overseas. The world can be your oister.
^^^ This exactly. Such a pain in the ass. These greedy developers need to be brought down.
@@serafinacosta7118 is it difficult to become a digital nomad? What happens if you lose your job and you're stuck overseas
Nothing wrong with living with parents, it is how it is in other countries. People should be required to live with their parents by law until they are married or partnered up.
@@emilywendling That's an awful idea. What about the people who don't see themselves ever getting married/ having a serious partner?
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
Most of the US is an illusion.
plus the $500/mth HOA bill LMAO
I promise you those countertops are not granite
Those so called "luxury" apartments are 5 over 1 apartments. They're cheaply made wood framed complexes over a concrete base. Developers are building them everywhere for cheap, making insane profits even tho they're more cheaply built than the projects. It's why all these new buildings look the same
Cause they’re not luxury. The word “luxury” has been co-opt my marketers for standard, what uswd to be middle class housing.
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.
Most people are unable to handle a fall since they are accustomed to bull markets, but if you know where to look and how to get around, you can profit handsomely. It depends on your entry and exit strategy.
The fact that the US stock market had been on its longest bull run ever makes the widespread worry and enthusiasm understandable given that we are not used to such unstable markets. As you pointed out, it wasn't tough for me to earn over $780k in the last 10 months, so there are chances if you know where to go. I hired a portfolio advisor since I was aware that I needed a solid and trusted plan to survive these trying times.
@@AnthonyHart34 My portfolio has been in the gutter for the entire year, so I began looking into new ways to benefit in the market, but everything I tried just seemed to miss the mark. Please provide the name of your financial advisor.
@@godof-ou1dw I went out to find a financial advisor named "RUTH LORALANN BRENNAN" that I had heard about on a CNBC program. Since then, she has given me entry and exit points for the stocks I track. If you require supervision, you can look her up online.
Exactly, and it was incredibly short sited for the woman in the video to state that the market would magically fix housing prices once we had more supply. Like, has she not been paying attention for 3 years? Investors and misguiding policy funding companies instead of limiting pricing and foreign housing ownership as investments are desperately needed.
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!
I think it depends when it was made. Anything made 2019-present is probably suspect. I'm living in a property made in 2006 and I would feel safer in it during a hurricane than something made now.
Where do you live? I'm in Atlanta too, and that is not entirely true.
I live in a luxury apartment the glass shower door fell and if I would’ve been in the bathroom the glass would have killed me based on where it landed. They are put together fast and are horribly over priced.
Lol
i deliver to these apartments all over the city doing doordash and i cant believe ppl pay money to live in half of these places. walking through the hallways is loud as hell. the buildings feel hollow. you can hear people having conversations inside their apartments. it almost feels like you could trip and accidentally fall through a wall into someones unit lol
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.
Im from dc too and he’s not lying 😢
Your situation blows my mind.
D.C. is for partisans, not for anyone "in the middle".
BRUH.... lol. Too poor to get the subsidies, but also not wealthy enough to get the luxury of not caring about the price of stuff. Brutal.
All you have to do is move to Baltimore and gentrify the city tbh. The commute by train is only 40 minutes
It's wild to me that the first criterion they used to define luxury was access to public transportation.
Lol you're right.
Slave quarters.
More and more people are realizing that they don't actually like to drive, they'd rather be doing something else with their time rather than spending it sitting in traffic. Now walkable neighborhoods are only going to be accessible to the rich while the poor are stuck with *expensive* cars. The suburban experiment has failed and is now coming around to bite us in the ass
Especially when the public transit kiosk is shot to pieces in the latest gang attack. North Murray UT is a huge example of these bldg.
It depends where you live. Where I live access to trains is very important.
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!!
This is just another excuse for them to charge more for rent. We don’t need luxury Apt. we just need proper affordable housing
@Chad Abercrombie A scam more like it. I havent heard that stupid phrase " the american dream" anywhere in such a long time.... beause there is no such thing.
@@chadabercrombie6860Quoting a massively rich actor. Your lack of intelligence is showing.
They are getting away with it. People are buying its same everywhere. You can buy land and build it yourself with workers. Its a hassle but its cheaper.
Luxury apartments are really good. The way to make homes more affordable is to increase the number of houses in an area. It really doesn't matter if the homes are luxury, since renting homes is like a hermit crabs trading shells.
the problem of these so called luxury apartments is they look cheap and probably won't last long before starting to degrade
It's a look, don't touch. Soon as you move in everything falls apart.
So the concrete and steel parts of new structures are great. The hvac, plumbing and electrical is probly 20yr lifetime. Tho, pretty much every other finish aspect will be wildly decaying in about a decade.
@@sortasurvival5482 Not even that long. Reports of toilets not flushing and rats running around the buildings happen within a year of the building opening.
@@kristenmoonrise ya. Honestly not suprised. Ive even watched some of our metals get lighter in the last year. Also, i have been dealing with alot of renovation on stuff built in the 80s and 90s already. Its not the job security that i wanted, but, if my body holds out ill always have work.
McMansion apartments.
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.
Yup! Facts. I'm on my 4th city in Florida.
Happening in major cities all over
But who are these landed gentries renting these apartments.? the middle class is still the largest group of people, Shouldnt apartments be marketed towards them. But these greed infected degenerates called real estate investors and developers are trying to turn this so called country into a serfdom.
You’re right. I’m from DC. I’ve seen it happen. Gentrification is not a bad thing because areas need improvement with the modern times. However, when it displaces middle to low income residents, that’s a problem. Not to bring race into this, but it’s true.
this isn't a bad thing
There is no such thing as a "Luxury" apartment. Space away from people is the real luxury.
"Affordable" doesn't mean what they think it means. It's still almost 30 - 40% of your take home pay. Doesn't account for food, transportation, health, utilities etc. Housing shouldn't be taking that much out of your pay and especially not for rent.
I think most Americans are paying over half their income on rent. Most people would be happy if their rent was only 30% or 40% of their montly income.
@@moremiaj4786 some places require your monthly income to be 3x the rent, so hearing people are paying more than half is ridiculous,
The average one bedroom apartment in the US is now $1769 per month. You have to make $63k per year or $30/ hour just to qualify to apply and then there is usually a waitlist.
If you're spending more than 30% of your take home on rent/mortgage you're already paying way too much. I know some apartments won't even approve people if your income isn't above a certain threshold.
@@nicklh1863x the rent BEFORE taxes which is just ridiculous because people are paying rent with the paychecks AFTER rent is taken out.
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 ❤
All they care about is having higher profits. Developers can care less about building quality anymore.
Yes in one now! 3 year old complex. Thin walls, horrible maintenance, parking issues. Just to make the least
@@Vincedaprince1 omg the parking issues!! Forgot to mention that!
I guess Luxury apartments work like luxury cars
@@rosolinomangiapane2049don’t rent. Buy. Renting is for poors
This is happening in London a lot too. Plenty of new build apartments being built, but they are ludicrously overpriced, given a 'luxury' tag, built for profit (an increasingly toxic mindset to view a basic human right like a home) while average Londoners are stuck with an increasing lack of affordable options.
My favourite part about these luxury apartments is that they're all leasehold. So you buy an apartment for something like 500k and still have to pay ground rent to the landlord.
@@ol2510 absolutely, it's immoral and utterly crazy.
House is not a human right. You have to earn it.
@@larrybuchannan186 like the Native Americans did?
If we weren't slaves we would be able to build our own adobe homes that can last hundreds of years and are easy enough for a family or community to build it themselves.
Housing shouldn't need to be "earned" any more than water should. Let us build our own houses and they will actually be built to last, like they were in the old days when houses were built by people who expected generations of their family would live there. *That* is the mindset with which a HOME should be built.
@@larrybuchannan186 ok, so leaving the 'human right' aspect out, how do you explain hard working citizens who cannot afford even a modest space to call home due to the increasing price inflation. If you honestly cannot see a problem with the current situation in both the UK and the US, not to mention Canada then you have your head in the sand my friend.
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.
I could never afford a 2200 apartment. I could barely afford a paying 1100 for the apartment plus the utilities are in that.
I had to move to a new state since old apartment wanted to rise the rent to 1400$
I still make the same that I did in my old state that I used to live in, but I pay way less in rent now. I am taking home way more $$$.
Go to Silver Spring. You can get a luxury condo studio for like 1500. DC was two blocks away from my house.
@@asahisagoiboi3517 That would suddenly give me a 40 minute commute in each direction... minimum. I can't be that far away from home (family member with complex health issues), so it isn't an option for me. Really makes me with the metro was faster or that 495 didn't miraculously summon traffic anytime you enter it, lol.
Luxury apartments mean more in property taxes and this is the goal of local Politicians.
Its definitely a factor. Plus the politicians are all paid off to even allow the zoning changes needed. "Exclusionary zoning" means land can be bought cheaper -- then its zone changed multifamily and its value goes up.
and more simply better margins for developers
It means the schools are funded
@@0IIIIII Which tying public educatino funding to property taxes was always a bad idea.
@@kgal1298 I am inclined to agree. We need a new system, a more equitable system. Perhaps other countries are proof. But then that begs the questions, where’s the money coming from besides property taxes? And what now becomes of the property taxes?
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.
It's worth it to people who care about quality.
i think it all depends who is the property manager. If the property management can are responsive and will take care of issue quick then its worth it to live in a luxury apartment otherwise its just nicer finishes.
If you have the spare money fine. But most people are barely scraping by. And when all they're building is luxury apartments you don't have a choice you have to rent an expensive apartment or live with someone else.
That's literally everything lmao
@@0741921 hahahahahaha brillant!
I predict a housing crash due to people buying homes over asking price, lacking equity if prices decline further. Foreclosure becomes likely if they can't afford the house, and selling won't yield profits. With anticipated layoffs and rising living costs, many individuals may face this situation.
I suggest you offset your real estate and get into stocks, A recession as bad it can be, provides good buying opportunities in the markets if you’re careful and it can also create volatility giving great short time buy and sell opportunities too.
@@jose2212- ou are right! I’ve diversified my portfolio across various market with the aid of an investment coach, I have been able to generate a little bit above $830k in net profit across high dividend yield stocks, ETF and bonds.
@@HENAhlgren It's best you do your due diligence, I have my portfolio overseen by “Mariam Sandra Milner” and her qualifications speak for itself. Most likely, the internet is where to find basic info, she has a noticeable page for consulting.
Even if it were to crash it would very quickly pick up again every greedy hawk on wallstreet is prepared to buy proerty when it falls. Everyone knows property is the one thing that will only continue to rise.
Especially since everyone is moving to the citiew
No, no housing crisis. You're living in the 1980s. Any crisis will be buffered by more fed low interest loans, or some other fed facility.
At the very least a private equity firm will buy the remaining loan principal because there's no rent control.
I lived in a “luxury” building in Salt Lake City. Rent was about 1350 a month for 570 square feet one bedroom. Added on fees and utilities made it more like 1700 a month. The elevator and hottub were probably broken down 50% of the time
I had to move out of provo because of I could no longer live afford to live their.
I moved to a state where the rent is 636 for a 2 bedroom, 1 bathroom. It doesn't have a dishwasher, or other fancy stuff to it, but it is cheaper and I do have a car garage for my car.
Damn I pay 1500 a month for a 911 sq.ft Apartment in Houston.
JuSt MoVe oUt oF tHe ciTy or something like that. The apartments in the middle of freaking Scipio, Utah aren't even any cheaper! This is getting ridiculous.
@@GarrusN7ghhh I haven't played that low in rent since 2017... in the same place. I moved in at 1600 and left at 2300 this year. The next tenants were charged more.
Edit to add: something like 600 sqft, one bedroom
With that money, in South Africa you could get yourself a decent 3 bedroom + kitchen + lounge + garage + sizable backyard in a decent neighborhood. All adds up to 600m2 minimum.
You guys are in hell property wise.
A huge problem in America is the fact that we’re able to put any label on anything without any repercussions because there are no rules or the rules only apply to a few. There should be certain criteria you have to meet before you call something “luxury”, just as there should be before you put “organic” on an item, and this list goes on. At some point we have to admit that we’ve put the bandage of “that’s good marketing” over this problem for far too long.
Government needs to be doing it's job, and it's not.
So you want the government to regulate words? A term like "luxury l" is so subjective that it isn't possible.
@@zsi Clearly you missed the point lol… The words are far from the problem
no surprise from a country that arbitrarily labels ppl black or white
Another major problem is this crap housing is the only option for newer housing. The govt just stopped building section 8 and affordable housing units to counter the private market.
Here in Ohio, an apartment will throw in some cheap granite countertops and laminate flooring and suddenly market themselves as a “luxury” and yet I can still here my neighbors slam their door.
I can hear mine fart and pee. And my landlady is throwing me out so she can add granite countertops and laminate flooring, then raise the rent on the next tenant by $1k/month
I live in Arkansas probably the second poorest state in the Country. The rent for a a descent apartment in the State Capital runs $1200 more a month but he Annual average income for a person is around $36,000 for a single person before taxes.
so many of these were built throughout ohio in 2020/2021/2022 that still aren't filling with tenants. everyone had the same idea based on the same cost/profit models, saw the dollar signs and didn't care to consider that countless others were making the same plans
@@epiccartman5579 I spent a week on the west side of Cleveland and it looked like the city was still under Covid lockdown, very little traffic or activity on the streets compared to 2002 when I moved away. Also there are still empty lots all over the place from the 2009 real estate collapse and resulting bulldozing of vacant homes.
I doubt there is much demand for any new housing and I'm not sure why any is being built at all. You can still buy a single family home in good shape there for $100k if you are patient and are willing to do the legwork. For that price a working couple can afford to send their kids to better schools and live in a walkable neighborhood rather than the suburbs.
Moving into a new box covered in corrugated metal (who even thinks that looks cool?) isn't anywhere on my to-dp list, yet that seems to be the city's big plan for redeveloping the Flats.
Nothing says luxury like paper thin walls and gun shots outside of your window.
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They’re called “Luxury apartment condos/ complexes” yet the materials to build them are cheap. Cheap insulation, paper thin walls, leaks every other week, etc
Thin walls and "luxury apartment"? No way. I live in a "luxury" apartment in LA and it's basically the only place you can live now when SFH are unavailable and cost to own is always higher than renting. Welcome to the new "renter" economy where only people with capital can dictate how everyone else will live and what is available. But those people with capital are just parts of large face-less entities with no real stake in these "communities". They do the bare minimum to keep the property functional so they can continue to receive the rent short of any legal threats from tenants.
Serfs Up
For the LA basin, this is 100% on point
@@larrys4618 😅🤙
and also if landlords are doing the bare minimum then in 20 years those buildings will be falling apart. part of smart home ownership is doing proactive and big maintenance because this actually protects your investment long term. but of course people are trying to do short term investing, which works, short term. where i live in the UK the houses are beautiful and old but decades of underinvestment means the city is falling apart from the inside out and it's basically impossible to bring the housing into the 21st century now because it's fallen so far behind en masse. time will tell what the total benefit/loss is to the city as a whole
We have a condo in a 1972 building. It’s a tower, 11 stories so it’s concrete. One reason we purchased it was because the apartments are really quiet. Since it’s old the maintenance fees are high by comparison to other condos in the city but our HOA stays on top of maintenance. Most units have been renovated and they are huge, plus the grounds are beautiful with big trees and gardens. It’s in an urban/suburban neighborhood, not in the downtown area but within a few miles. It’s definitely not considered luxury but it sure feels luxurious to me and at about 50% of the cost of the new “luxury” apartments.
I live in Springfield MO, not exactly a place people are running to move to, but even here housing is getting harder to find and becoming so expensive compared to average income. I can only afford my decent apartment I live in now due to working for the company and getting a small employee discount and my rent still goes up quite a lot every year! Just a couple of years ago prices were so much lower. The only thing anyone is building is luxury. There is no affordable housing outside of cheap crappy apartments from the 70's/80's and now they're all getting renovated and cost more than even where I live. Renting houses isn't any better. I really believe we are headed for a major crisis and it seems like nobody cares. It is so frustrating
Nobody cares... that is the problem. I think the poiticians actually sanction it, both dems and repubs alike.
It shouldn't be breaking news to anyone that rent will go up every time you renew your lease. Why you keep reacting with a Surprised Pikachu face is beyond me.
If you know your next lease renewal is going to increase your rent obligations, maybe you should look at ways you could make more money.
I swear, poor people are obsessed with someone taking the place of their mommy and daddy and fixing things for them instead of them fixing their own problems. Then you're shocked that you went your whole life miserable because no one did that.
As an economist once said, 'We cannot solve our housing crisis with luxury apartments alone. We need a balanced approach that includes affordable housing, revised zoning laws, and incentives for diverse development. Let's build a future where everyone has a place to call home.' 🏠🌇👨👩👧👦👍 #HousingForAll
Yes housing for people who don't want to pay rent and see it all as a scam. Housing for people who would like to rent to own so their money won't lose value. Housing for people who don't mind paying extra for a pool and a gym in the buliding. And housing for investors who just buy and sell buildings trying to make the most profit.
@@jahjoeka Human nature aside, it is a matter of public policies not changing the fact that people are greedy.
Housing should be partially nationalized. 100,000 people are homeless in California and Los Angeles alone has over 90,000 vacant houses owned by conglomerates. Privatization doesn’t work.
@@jkim-ph1ds One potential devil's advocate argument against the idea of nationalizing housing is that it may not necessarily lead to better outcomes. While the housing crisis is undoubtedly a serious issue, there are concerns about the efficiency and effectiveness of government-run programs. Nationalization could lead to bureaucracy, inefficiency, and a lack of innovation in the housing sector. Additionally, nationalization could lead to a lack of choice for consumers, who may prefer the flexibility and variety that comes with a private housing market. There is also the risk that the government may not be able to provide housing that meets the specific needs and preferences of individuals and families. While nationalization may address issues related to affordability and access, it's important to consider the potential downsides and ensure that any solution strikes a balance between public and private interests.
@@jkim-ph1ds part of that problem though is from public policy. People have tried building tiny homes with the purpose of helping out the homeless and they were torn down for not meeting some regulation.
Never understood all the "luxury" apartments going up everywhere. Always wondered where are all the rich people that are supposed to be renting these, pretty sure many buildings are sitting there 1/2 empty while your everyday person has less and less options. Maybe if they can abandon the words "low income" and "affordable housing" for just your normal average apartments with realistic rent there would less stigma. And yes, we need zoning reform big time.
Good point
In Houston there are so many new luxury high-rise buildings built on land that was flooded during Hurricane Harvey. It's really disturbing.
Most of these are being built in the sunbelt cities. So people are fleeing from the northeast and Midwest with good jobs and can afford them. Overall they’re still cheaper than where they’re moving from.
@@ZeusAVI nope. Rent eats up those extra wages. It's a lateral move.
That's my thought process. Just who the f*** are supposed to be renting these units?
I always forget that these videos don’t actually answer the question in the title
I heard some people in Brooklyn paying 3,4 grand to live on the 4th floor with no elevator. Unbelievable!
It sucks and it’s not restricted to Brooklyn, New York City.
I’d rather use the stairs
They are and it is ridiculous.
wonder what happens during a medical emergency!
@Superman With A Gun I'd rather use the stairs too but I have friends and family who use wheelchairs so they wouldn't be able to visit.
And most of these luxury apartments have white /wooden baseboards in the bathrooms! Like seriously, couldn't afford to tile 6 inches off the floor (if they even are tiled at all). They are built as cheaply as possible.
Built horrible.💯
Don’t rent
@@0IIIIII because it's that easy.
@@0IIIIII Unless you spawn in a house or live with your parents, most people have to rent until they can afford to buy.
One big component missing in this analysis of luxury apartments is what percent are actually occupied full time. Often apartments like this will be rented or owned as a pied-à-terre sometimes by those with a couple others in other cities.
They did this in my college town. There used to be individual leasing for college roommates, then companies started buying out those apartments. The students have been basically priced out of those apartments, making it geared towards families… and the complex is located ON CAMPUS right next to Greek row. They remodeled them, went away from the individual leases, then started charging city prices. You can literally get the same thing in a downtown high rise luxury apartment for the same price as far as studio and 1 bedrooms go. Now the few apartments that still do individual leasing are sold out well before school starts. The other apartment complex that got bought out still have plenty of highly sought after floor plans available. Half of the complex’s apartments aren’t even available for leasing since they just started remodeling. They’ve already dropped their prices by 300.. looks like no person in their right mind wants their family to live on a college campus
I never understand why they make thin walls. I know thick walls costs more but you got to take care of your customers or your business will die.
but who are the ones with no choice?
Buying a home is a once in a lifetime thing for most people and many people don’t know about the construction company and their quality standards when doing so. I don’t even think construction companies care much about consistency of their quality with each project. All they care about is maximising profits.
You mean soundproofing. Ha ha, reason why I hate some apartments, not that I live in one. But really, you can hear everything. No thanks. They need to soundproof.
Because few have a choice. It's like gas prices. No matter how much they raise it, they know you need it so you'll buy it regardless. Price inelastic.
@@kristenmoonrise well I been gave up on the car idea.
Luxury = higher rents which equates to higher margins. Look at almost any, if not any new apartment and you will see cheap build quality hidden by fancy looking finishes. This is just another example of the corporate smoke and mirrors we have seen in other industries over the last 30-40yrs.
I think they developers and investors had a time table in mind, how many years before demolition is necessary and how much profit can be had from leasing. The new “luxury” apartments are not built to last, just last Ling enough to get money’s worth.
Residential real estate depends on the willingness of people to borrow for what’s typically the costliest purchase of their lives. As the Fed continually jacked up interest rates last year, the average rate on a 30-year fixed mortgage topped 7% last fall - more than double where it began 2022 - before dropping back slightly.I'm still at a crossroads deciding if to liquidate my $338k stock portfolio, what’s the best way to take advantage of this bear market?
That’s right! Downturns provide plenty of opportunities for regular people to build wealth from the scratch. However, you may need to get some professional advice from an Invest-ment planner if you need an aggressive return.
@Zahair O'Brian Please can you leave the info of your invstment analyst here? I overheard someone talking about how a couple made $200k during this red season. I need such luck.
"How can I become part of the problem?"
"How can officials fix this?" You can start by limiting the number properties a company/landlord can purchase and own, especially if many of them are in the same area where prices can be monopolized or at least manipulated. There's no reason why these people should be holding dozens of rental properties, especially when people barely have a chance to even buy and own a home.
There's a few problems with that. First - it's extremely "communist". Second - it's useless, there are too many companies and nobody stops someone to have more companies.
The fix is much more simple than that - the state can build houses and sell them cheap to individuals, the condition is that he cannot resell that house or rent it for 30-40 years.
They don't need a monopoly. There is an AI software that looks at data and sets the price..... that's right, they're all price fixing with AI. 70% of landlords use the same software, and the same AI.
That would do absolutely nothing to fix the overall housing shortage. That just changes who owns the properties. Not to mention, when we finally fix the housing shortage, prices of homes will go down (basic supply vs. demand). It'd be much better if it's large corporations taking the loss on that than regular people
The only way to really bring down prices is by building more, and making it cheaper to build. Additional rules and restrictions are just a band-aid that doesn't address the underlying lack of housing
Wrong.
Short sighted thinking. People have been investing in real estate for centuries. The real issue was coming out of the GFC NOBODY BUILT ANYTHING. When you don't build something for 15 years while you're having population growth, economic growth, etc., you're going to see some jacked up things in the RE market.
Every apartment complex call it self luxury, even in the hood. We need regulation on the word luxury lol 😅
lmfao fr
Just like when Charmin and Cottonelle called themselves "flushable wipes" it's all a lie
@@highlymedicated2438 never flush them, please no. That term really needs to be changed. They're wipes. Don't flush!
Transit-oriented development is made a lot easier for developers when they don't build massive underground parking lots. It's not always they're fault because local regulation usually requires new developments build a minimum amount of parking regardless of a project's proximity to public transit.
th-cam.com/video/zjJNhf3Xmc8/w-d-xo.html
Yea but the question is will people shift to it? No, they rather have control when they can leave where they go etc.
@@chinookh4713 I understand that sentiment, but in practice (in my anecdotal experience) you have the same amount of control when there is good, robust public transit. It is frankly just way easier and less stressful. And again, just my experience, but I have always felt the requirement of a car to meaningfully engage in transit makes me feel less free and significantly more stressed (both in general and financially). Cause, in reality, cars are super dangerous, plus they isolate you from the community. You don't see a face when you drive past another car, you see a giant, metal, dehumanized box. Just my two cents, cheers.
Most apartments and condos nowadays are not what I would consider "luxury". But since they're new, clean and on a quiet street "basic standards that any new home should meet", they're considered premium real-estate.
This would be ok if the US built more affordable apartments
They do, they are called affordable housing. Luxury apartments are the opposite of that. They can both exist because certain people what more in life.
@@ssj2camaro21 most cities are not building affordable housing right now
@@lanxy2398 they are not building affordable housing because it's not profitable to buy land at premium prices, build with labor and materials that are at all time highs, and then charge rents that don't cover the actual costs of the units.
You cannot "build affordable aka low income housing" and not go out of business as a builder.
So the only real option is going to have the government fund and build housing (paid by taxpayers) which I'm sure will be an epic success. But land will still have to be purchased at high prices because that's a relatively "free" market we operate in.
But as government does this, land owners will increase their selling prices since the government can afford it, making the problem worse.
Unfortunately, the issue is complex and there is no easy solution.
Just like any other industry, companies and people go into business to make a profit. If you were asked to perform a stressful job for a months (construction) and not make any money or worse take on new debt, you would quickly say no it's not worth it.
@@thesayn3ver Easy fix, nationalize development companies and start building housing based on the needs of a city. Enough of pricing people out of places they’ve been their entire lives
Your gov hates you. So it won't happen
Everything is called a luxury apartment these days even when they aren’t actual luxury apartments.
I've always been a renter here in Chicago. My ex and I used to lived in a luxury apartment. It was nice cause of the amenities it offered. But we moved out after a year. The elevator was constantly out of service, mind you we were in the 4th floor, garbage weren't collected timely so you could really smell it whenever you go to the garage, there were always problem with the hvac unit, and at one point we had no water cause the management didn't paid the water bill ☠️.
The word luxury is just an appeal to renters but sometimes it really wasn't luxury.
I'm still a renter. As long as it's got a hardwood floor, in unit washer/dryer, and of course dog friendly cause of my fur baby, it's all good. My current apartment has those with the addition of dishwasher, a lovely stone balcony, central heat and AC, my commute to work is a breeze since I'm only half a block to train station that takes me directly at my office, and a great rental management. I've been here since 2020 and the property manager hasn't raised my rent since then.
Are the walls thin?
The moment you said "fur baby" I had to tune out. Typical of post-wall women, you couldn't convince a man to give you a child so you pretend a dog is your child.
With changes in the economy leading to instability in the stock market, some individuals may face a decrease in their investments in an effort to benefit from the current market conditions, I am considering liquidating my $725k portfolio consisting of bonds and stocks. Someone else in the same situation? Please tell me in the comments!..
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I see your point💯
Affordable housing is $1,000. mo. Or less.
For what size? What location? That is too low in most places to be realistic.
In Ohio I would agree. I somehow found a $700 mo but it is a private landlord, a very old structure, w very few amenities. Most places are $950 plus in not the best neighborhoods and even more in better ones.
These corporations are only worried about profit and not the quality of the product and service, they don’t stand behind what they do.
Like someone in the video said, a lot of these are luxury because they're new. The best thing we can do to ensure housing affordability is to simply build more and build up (rather than out). Inclusionary zoning is good and often necessary to reduce displacement, but it's only a solution in so far as it doesn't discourage new development.
Ultimately, new buildings are going to be pricey and you can only do so much to mitigate that. cultivating a truly affordable and abundant housing is like planting a forest. It'll take a long time to develop, but if you never start, it'll never happen.
Lol, you clearly have no idea what drives the housing market. It's driven by profit. What you're suggesting is that private entities simply change their mind and make less profit for the sake of losers who can't afford their luxury apartments.
What CNBC did not mention is that zoning laws have required single family homes, minimum grass space, minimum street sizes for residential neighborhoods and for areas allowing other than single family, zoning has restricted the height of buldings.
What this means is that developers have less and less space to build, can build fewer individual units meaning that they upscale their builds to take in more profit per unit.
The solution is to remove Single Family zoned neighborhoods and height restrictions. Then we need to build more mass transit in sparcly populates areas to encourage more dense development there.
Everyone doesn't want to live in a box/apartment.
The apartment I live in now had a sprinkler water line leak on the 3rd floor and dripped through the hallways, walls, ceilings and floors all the way down to the 1st floor. It affected roughy 30 units. Large fans blowing inside the the apartments and in the hallways to dry as much of it as possible. Then they tore up the ceilings, walls, and floors to replace the insulation. This took almost 4 months to to complete. We asked for discounted rent and they said they will look into it. Our rent is $1700/month for 3 adults and all we got was 1 $20 gift card. 💀
Omg. 🤦🏽♀🤦🏽♀
😅😂😮
form a tenants' union
😂😂😂😂the utter disrespect
🤣🤣🤣
My ex lived at Allegro, mentioned at 3:03. She said the same thing, the building was older but had been shoddily refurbished to make it “luxury”.
Rentals are a problem because people can never pay off any debt for living. They always owe to the landlord all of their life. And when they get old, their life quality and budget will suffer tremendously. We need to move away from rentals to more home ownership to guarantee a sustainable future for all citizens.
I live in a “luxury” building in NYC and it’s far from luxury. It has the potential to be but it’s just not well kept. Come to find out, about 50% of my neighbors are SECTION 8 😒
For those who never been to DC, especially pre-2010 have no idea the navy yard/waterfront was all parking lots and random small stores with little traffic. Now its a mini a New York with non-stop traffic especially during baseball games. Everything in this area costs much more than the average person can afford. Its a great place to go but if your funds aren't legit I suggest you seek refuge elsewhere.
I’m in South Florida. They’ve basically given away everything to developers that mostly build luxury buildings. That’s really emphasized in Miami Dade.
In my particular city, I can see the shift where luxury developments are starting to encroach on what was usually affordable working class housing, whether you’re buying or renting. A few years back, they have rezoned the large part of the area where my grandmother owned her house. I spent a good chunk of my life there when my grandmother was alive. It is still a very modest area and very working class community where you can rent affordably and buy an affordable house but that’s starting to change. The city has already approved several luxury apartment developments in the area, and some have started construction. These large developers have bought huge swaths of property and in a few years, that historically affordable area will no longer be affordable soon.
if you want cheaper housing then you beed more housing being build to counter supply not the other way around
Literally. I'm out of Tampa and the issues are only getting worse. Most of the builds are being constructed in downtown for over $2k starting, even though a lot of Tampa is working class and families. It's really sad seeing more and more homeless people, especially homeless children. Desantis and Castor need to incentivize afforable housing or else developers will never build it.
@@luismigueldelatorregalvez9448 I don’t disagree but the my point is that in addition to a focus on increasing supply, there has to be a focus on the socioeconomic diversity in housing. If a majority of the supply being added to market caters to upper-middle income and above, that still leaves a lack of supply for the fast food fry cook, the retail workers and the other low-wage workers. The lack of supply for that segment of the population won’t change much as rents continue to increase.
I work in finance. I have done project finance and construction financing. I know it’s difficult to make affordable housing for this segment of the population profitable for developers without some type of financial incentive from the government, especially in big cities where land costs are prohibitively expensive for affordable housing. Typically in big cities, it’s much easier for developers to not cater to that segment of the population because the market for more expensive housing is not slowing down as more people move in.
Miami is getting gentrify
We're headed into a depression. We'll be fine.
4 million too few homes! Holy crap that’s quite a deficit. Why is the government sooo damned inept?
"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.
Some people especially elderly people have become Nomads & live in vans become of this despicable affordable housing crisis.
Whats happened with housing is criminal. Things were not like this even back in the 2000s, pre recession. you could be a single person in the majority of the cities in America and have your own place. Then came the Post recession era, and prices just took tf off in every city and then every city suddenly had the same idea to only cater to the wealthy at the expense of its own citizens. And now theres really nowhere left to run to within a sane commute time or with any real economy.
The days of a Modest sized home and being able to rent/buy a home are basically done for. But for the builders and investors who speculated this mess to this point, they did pretty damn good for themselves. Its crazy to think how many Millenials and Gen Z have had their chances to gain wealth and have real prosperity taken from them before they could even have a taste of success.
@@joshuakhaos4451 i know the feeling. i remember being a teen in the 90s and looking at the apartment ads and thinking how affordable they were and i could work and have my own place, but by the time i finished college, things were a mess, things were growing to unaffordable prices. gentrification came for me and moved me out my first apartment. smh over the course of 5 years, the rent went from 800 to about 1400. im in a golden situation now, living near midtown manhattan with ultra cheap rent, BUT, a new developer has come in talking about they want to do mixed income buildings and tear down our already existing buildings. For many, there is no living in peace and having stability in America. it’s the american dream if you can afford it.
@@ThereAreNoBlackPpl American nightmare.
Property taxes in the US are also much too high. In some areas poor families owned a house for decades, but one day the property taxes became so high that they could no longer afford to live in the building they own. That is especially true in New York City.
Meanwhile it's much too low for single-family homes especially where housing demand is high, disincentivizing densification where it's most wanted.
Property taxes effectively turn the property you supposedly "own" into a rental property. Property taxes are a direct violation of the intent of the 4th Amendment. The Founding Fathers intended Persons to completely own their Property.
@@privacyvalued4134 The city needs taxes to function…
@@alx8571 they can get their taxes elsewhere
@@alx8571 Yet cities in the UK work completely without any property taxes. Of course taxes are important, but taxes should be paid when you earn money. Not for something you already own. If you earn money, you can use some of it to pay taxes. Your own house however does not generate any money for you. Property taxes are basically a wealth tax. Why are their taxes on property, but not on most other assets?
I lived in a luxury apt recently that was built in 2013. It looked good on the inside and outside. But the walls were thin. I did not have this issue in apartment that was built in the early 80s that had been maintained throughout the years in a nice area. Than I moved into an apartment that was built in 1970s and it was horrible. Walls were paper thin, water was always been turned off, hot water issues. Squeaky floor blood it was horrible. There needs to be more regulation when it comes to apartments especially because a majority of the population live in them. Fast forward living in another “luxury” apt built in 2009 that is beautiful and nice on the inside. I enjoy not hearing my neighbors on side of me or above me. I can hear the occasional footsteps above but nowhere near as bad as the previous apt. Apartments especially the new ones should have some type of standard when it comes to acoustics. The same can be said for houses
Too bad no one points out that the need for "Affordable Housing" is a red flag that the system will never adjust so that everyone can work a job and afford a living. One of the key duties of a government is to set an environment where everyone has the opportunity to work aka positively contribute to the community and be rewarded enough for a comfortable living. In the US is it a rat race and a dog fight for the crumbs the top decides to down so the gladiator games can continue for their entertainment.
The world should observe what the happiest countries are doing so that the large majority of the population are happy, and willing to live by the laws bc they trust that it is best for the community as a whole.
The world is seeing the fall of the America but the smart countries already saw this and avoid following its footsteps for the sake of the country.
All housing should be affordable. Prices in this country are insane.
"land of the free" 😒😒😂😂😰😰
You should see prices in Canada…I would definitely make the move to the USA
yeah when people say we need more apartments to solve the housing crisis I call BS since these new apartments are literally all luxury and still start a renting rate that is too high for the average person. Doesn't help landlords are meanwhile tearing down older affordable buildings in favor of these.
I think the Russian (for all its other sins, they did decent planning) mini-development is the most efficient. They build a small cluster of high rises that have full services (stores/salons/gyms/ect) on the first floor and then build midrise units around that and then an area of single family. Connected by trails/paths. So you get a fairly compact high density area that doesn't require a lot of driving while having most housing options.
Due to the zoning laws the land prices are too high to build anything other than "luxury" appartements. If the land is 10 times more valuable than the old building on it, then you tear it down and build a new one, so you get paid the rent, the plot of land is worth. It's simple math.
@@Psi-Storm Who do you think votes for these zoning laws? The property owners trying to artificially jack up their property values by limiting the availability of housing. You can't just say "zoning laws" are the problem while completely ignoring the parasites enabling it.
"Luxury" apartments are still more housing stock. They always add more housing even if not affordable. That is still better than nothing.
The luxury apartments are a symptom of the problem. If more apartments could be built it would be economically viable to build apartments at all levels. A
The homes are a perfect representation of America right now. Homes look great from the outside, dazzling lights, fresh paint etc, but on the inside it's all falling apart!
It's a facade, it's all a deceptive facade.
When I was on a traveling tour in Spain, the guide was showing us housing that the govt built for ppl, large, austere block-like but newer looking buildings. The guide also said that the govt built a metro station near the housing. This is what we need in the States, just reasonable housing without the bells and whistles at manageable prices. But everything in the US is always about squeezing out the most dollars out of everything 🤷🏽♂️
This is what happens when there is a growing wealth gap. There are a handful of people with plenty of money who can afford "luxury" while the majority of people struggle to afford anything. The money is in luxury, not serving the average American, so that's where the market goes and the rest of us get priced out.
We've got to create policies that do not allow housing to be bought as an investment by these big companies that don't care about actually providing housing. Invest in housing that the average person can afford! Invest in lower income housing to alleviate the strain on housing for everyone.
The "most zoning only allows single families homes to be built" part goes over everyone's head and always gets ignored. And then people start coming up with random ass ideas about why housing is expensive.
which is mostly because of artificial shortages
"No, your wrong it's because if bLaCrOcK!!! Even though they own less than 1% of the housing."
Sometimes people don't want to acknowledge what's staring at them in the face, like what you mentioned in your comment.
Exactly. Focusing on luxury apartments or gentrification is a red herring. The reason home prices are so high is a lack of building and a lack of density. Ultimately, a block of luxury apartments still means more housing supply (as long as people actually live in them), which means overall prices in a city should go down.
No homeowner wants multi units next to them or in their subdivision. It goes against the whole point of home ownership and the streets/signals were never designed for the increased density.
I think that’s part of the issue but not all of it. Additionally, there’s often people that push back against rezoning single family exclusive areas. I’m not exactly sure how you balance the interests of property owners versus a policy goal of more affordable housing.
Separately, housing is an extremely local thing with local factors driving it. I don’t think there is a broad solution or one-size-fits all solution to the nationwide problem of expensive housing. In crowded cities like DC, or where I am in South Florida, more people tend to move in than out. That provides an opportunity for developer to ignore that part of the lower income housing market because they’re doing just fine without catering to lower income people. That’s a part of the problem, and that’s a more localized problem. Even with rezoning, there are more large scale developers wanting to build for that middle to luxury market than not.
When billionaires and wallstreet Investment firms get bored, they play real life monopoly ! - and they have been bored for about 10 years now.
Doing this they are able to control local economies and communities. Which in thus controls other systems ... it's really a big problem that we face as a country.
But seems like it's all over the world now ?
This is why we need to get rid of the constitution and property rights. Communism is the only way for everyone to be equal.
Creating a problem and giving you their solution 💰💵
Real life monopoly. I think so! But no go to jail card.
There has been a massive shift to apartments because commercial real estate demand crashed when working remotely became normalized.
@@SIGNALFREQdon’t rent. Buy your own place
I have been buying some stocks since the beginning of the year, but nothing substantial. Why am I treating this poorly? However, people in the same profession are earning six figures on articles, which inspires me to aim toward becoming the first person in my polygamous family to hit the million dollar mark. I am perfectly aware that working harder to gain more money is expensive.
Nothing you're doing is wrong; you simply lack the knowledge to profit in a bear market. The only people who may earn greatly during dangerous times like these are professionals with vast knowledge who must have observed the 2008 crisis.
@@justinajoshua9369 I have no Advisør at all and this recent dip which i feel was triggered by war resulting to inflation and so many other factors hit my portfolio so hard. who would you recommend i seek out for in times like this?
My consultant is *"JAMES GIFF GIFFORD"* .I found him on a CNBC interview where he was featured and reached out to him afterwards. he has since provided entry and exit points on the securities I focus on. You can look him up online if you care supervision. I basically follow his trade pattern and haven’t regretted doing so.
Apartments are getting ridiculously expensive, i was looking at a 2 bed 1 bath in Philadelphia a month ago and it was $1500, i just checked and its $1600 and their 1 bedrooms went from $1300 to $1400 with the tag newly renovated. I thought every Apartment was newly renovated when someone moves out. So luxury is a tag to raise prices
The problem is that companies like Blackrock have been allowed to own so many of the housing units that they now set the prices. The prices they set are not based on the market, but on what it takes to return a profit to shareholders. I can't imagine spending $50 to 70K a year just in rent! There is no return on investment , that money is just lost. At least with a single family home that you pay a mortgage on you will see a return over time. Also, how much money do you need to make to be able to pay these rents? it looks like no one making less than $100k a year can even afford an apartment anymore. More and more people are being forced to share small spaces with roommates. We are rapidly going back 100 years to the time of tenament housing and unsafe conditions like what low wage factory workers used to put up with. Only now, it is people with higher education and skilled labor that are being forced to live this way while low skilled workers are being forced into modern tent cities called homeless camps. If you want to fix this, limit the total number of housing units one entity can own NATIONALLY. Limit them to 100 units maximum and force the liquidation of all others. This will force a rebalancing of the housing market and put more housing in private hands. It won't hurt the small business landlords, but it will crush the REITs. This in turn will introduce competition back into the market and drive down rents.
Mom & pop landlords were decimated during the pandemic and in many ways they were responsible for a lot of the more affordable rentals. Local zoning officials don’t want the traditional multi family housing in their towns either and prefer these luxury buildings
The eviction moratoriums did that. People exploited that, and then the banks or municipalities seized the properties because local landlords couldn't pay properly taxes and mortgages.
That simply never happened where I'm from. Source: Am a landlord.
@@samsonsoturian6013I’ll edit your post for you “that simply never happened where I’m from” *too me
@Samson Soturian I also Identify as a landlord
@@jryde421 I own a duplex, dude
i am so so glad I bought my home I'm 2005! NO way I could afford to buy something half this now. I am trapped here , cannot afford to move , don't like it here but am blessed compared to most . my light bill sometimes approaches the amount of my payment. people have gone crazy. I'd live in a camper before I paid 500k for some crap house .
‘Luxury’ just means EXPENSIVE nowadays, it doesn’t mean the quality is higher.
My down-to-earth friend has a wife that isn't. She wanted a new kitchen that cost $25k and got it. I asked him if his baloney sandwich tasted better. The answer was no.
Luxury without green spaces...lol😂
more concrete gray spaces, lol.
We the ppl don’t want luxury apartments. We want regular, simple, safe, affordable. The problem lies with saying modern apartments are luxury. It’s 2023. Apartments are supposed to have updated floors, appliances and fixtures. We’re being robbed by good marketing and supplied with overpriced non luxurious apartments. It’s a shame. Such a mockery to the ppl that work so hard for their money to give it all back just for rent. It’s a legal scam!!
Yeah, the zoning exists because nobody wants to stare at horrendous, faux-luxury apartments. It is restrictive, for a reason. Single family homes promote ownership which leads to interest in the community. Growing up in a major metro area and now owning my home in a rural community, it shows. People care about their neighbors. There's little to no crime at all. We get to look at trees, fields, streams rather than hideous concrete structures filled with renters who are bitter about the cost of rent.
I'm watching a luxury apartment building going up in my city. I wouldn't live there, the walls look so thin and it's getting put together quickly..right through the coldest part of winter.
You're smart. 👏💯
Luxury apartments are the exact reason so many people are being priced out and rents have skyrocketed. These developers are greedy, they know that people will HAVE to buy into the luxury apartments because there's no other choice. They are not building affordable housing any more. The government needs to step in or multi generational housing will start to rise, and that would be a pain in the ass for every one.
It's generational pain, You or they do not pay anything for buildings constructed. Once companies or people die the debts just vanish in thin air.
The government wont step in. Gen Z will be a generation of adults living with their parents until they die and the houses get passed down.
These luxury apartments are actually good because the are increasing the number of homes in a city. They add more homes available to rent in an area. Think of rent homes like hermit crabs trading shells. Rich people move out of their homes into the luxury apartments, then middle class people move into the rich peoples old home, then lower class moves into middle class home, then poor people either move into lower middle class homes or the poor gets more affordable housing due to more competition.
Oh what a life, going from a cubicle that pays you to another cubicle that you pay for to sleep in 🎉
"Luxury" my left cheek. These are completely average apartments with a premium price tag because of how unaffordable housing is in America in general.
I was renting a 2 BR apt for $5500 in NYC. I was able to buy a 3BR house across the East River in Queens. My total monthly payment is the same. Now I think people are nuts to pay that much in rent.
Same but $6k for a 2br in hells kitchen. We moved out of that into a 1br in UWS but now it's gone up to 4k. We're saving for a down payment to move out of the city, just don't know where yet.
@@pkal244 South here(Alabama). We've got 3 bedroom houses with a 2-car garage and nice yards for 200K, and that's after the prices jumped 80%. New folks welcome, for anyone who doesn't want to pay crazy costs.
I bought a 3400 sq ft craftsman home north of Ithaca. Much more affordable and I am so much happier.
@@pkal244 let me know if you want to move to NJ JC area lol
NYC will never be “affordable”.
Singapore has a great model that any country can follow. HDB homes in Singapore has provides home for nearly everyone, while there are still luxury homes for those that can afford it.
I lived in a so called “ Luxury apartment “ for over a year that wasn’t luxury. I paid $1160 for a 2 bedroom plus a bunch of fees for “ amenities” that didn’t even work majority of the time. The pool was closed for MONTHS, the door to the sauna was broken, the equipment in the gym was old, the unit I stayed in had a bug problem for a YEAR, the walls and floors were FILTHY, I had to call maintenance often because EVERYTHING in my unit BROKE, I had an old washer and dryer, the walls were PAPER thin, I heard my neighbors ALL OF THE TIME, the office was closed most of the time, they made us evacuate during the hurricane, and they barely answered their phones. They also kicked me and everyone in my building out due to “ construction “ and said we had two weeks to move out. They gave us money for moving expenses and returned our security deposit and two weeks of rent but that didn’t make up for them kicking us out in two weeks instead of giving us a 30 days notice. Fortunately I was able to move in with my boyfriend and save money. Most likely they will raise the rent yet again for their new tenants.
Traditionally, in cities like Boston, where I lived from 1981-2004 from the time I was a student and lived and worked afterward, apartments were just called apartments. That it was a short walk to a trolley or subway station was just called city life. There was nothing particularly luxurious about any of it. This whole concept of "luxury" apartments is just a giant scam of epic proportions. It is ALL, monumentally cheap, poor construction with corners cut at every possible opportunity, then marketed mostly to the younger generations as something that these places are NOT
To be fair I live in California one of the worst states for housing. Almost every project that goes up is luxury housing that starts with studios going at 2500-3000 a month. My unit itself is 3837 a month so I feel this. But the issue is if you buy anything here in California at least 'middle class' and 'entry level' apartments were built at this point 20+ years ago stuff is falling apart worse than in newer places so if you can afford it you generally want to or have to. So you avoid issues. My first apartment in California was an investment owned community by some big landlord in LA the apartment complex was built in the 1960s this was 2018. They had sewage leaking in the ceilings, backing up into the tub, a wall ac unit that would trip when I ran my microwave or vice versa and roaches and paper thin walls. That was a 700 sq ft 1 bd for 1500 a month in 2018.
There was nothing "fair" in your comment.
They are greedy and extortionists, nothing less.
They are arrogant, ignorant and overly proud.
They are heartless and soulless.
So true. Hollywood and the surrounding area is starting to look like Manhattan New York. Tall luxury, unaffordable apartment buildings going up on every corner.
@@femmebrulee5053 the government needs to do more to incentivize affordable building
Massachusetts is now the worst state. Boston is the most expensive city to rent in the entire country. Higher than any city in California sadly.
They need to address zoning, laws that make it more costly and time consuming to build and provide incentives
we need more housing and need to get rid of the zoning laws to allow more multifamily and mixed zoned areas so that we can add more housing supply
Hmmm. Nope
@@Militantreturns so we do nothing lol! Nice take!
We just need more legal overnight parking options so it's easier to live out of your car.
Good luck convincing NIMBYs to allow multi family buildings in their neighborhoods.
@@ZeusAVI and that's the problem. just because you buy a house in a neighborhood doesn't mean you own the place.
This will backfire big time. Also a lot of these apartments aren't real luxury. Here in NY luxury means they throw stainless steel appliances and a virtual doorman.
Comes down to the back-end side of these deals. Cap rates (%of the value of the property earned each year in income) were low when these developments were started. Now that cap rates are going up, investors need to raise rents to make sure the value of the property doesn’t go down too much. Rent hikes aren’t going away anytime soon.
How many of the people being interviewed have their investment money tied up in housing 🤔🤔🤔 that has to be discussed in detail before the interview or they are biased af
When the guy said "developers are doing magic", i already knew this video would be bs.
No
I always wonder whose paying for these luxury apartments willingly. That's crazy. Alot of these apartments remind me of the quality of dorm room material apts and storage unit structure material for apts.
Thank goodnes. I thought I was an idiot for wandering about who is paying for all these luxury apartments. I mean... who is paying nearly $4000 for a one bedroon or even two bedroom APARTMENT. And yes a lot of these luxury apartments look cheap ASF. They have this so-called minimalist look on the outside and the insides are just updated versions of utilities because the building is new. So instead of the faucet to look like it was from the 1970s, it would be some cheap faucet that was designed and made in the last 10 years. Who has all this money to throw away on rentals? I keep wondering who all these mega rich people are?
I lived in an “luxury “apartment for a year. They are cheaply built and there are nothing luxury about them. You can hear neighbors upstairs and downstairs and side by side. Develop deep health and mental issues living in these apartment buildings.
The system is rigged. For instance, Blackstone has been one of the biggest buyers of real estate. In June 2021, Blackstone Real Estate Income Trust, Inc. announced that it had entered into a definitive agreement to acquire Home Partners of America, valuing the company at $6B. They also bought Bluerock Residential for $3.6B. Also, spending $1B on apartments in San Diego, CA. In July 2022, affiliates of Blackstone Real Estate completed the previously announced acquisition of all outstanding shares of common stock of PS Business Parks, Inc. for $187.50 per share in an all cash transaction valued at $7.6B. This is only one of several big firms attached to Real Estate.