Are Luxury Apartments Worth It?

The past few years have borne witness to a boom in new apartment construction. Since the end of the COVID-19 pandemic, more than 400,000 new complexes have opened their doors every year, with close to 700,000 welcoming new tenants in 2024 alone.

Many of these new properties have debuted with what seemed to be upscale or luxury accommodations. Those amenities have come with a counterpart, of course - higher rents. So, the question is whether these "luxury" properties are truly worth it.

Why I Put Luxury in Quotes

The properties I'm talking about in this piece are not true luxury apartments. Those apartments are out there - with all the trappings of a mansion and a country club rolled together.

Most of these new complexes are not those. Instead, they offer a standard of living much more akin to that of a corporate office, with neutral wall shades, laminate or tile floors, and crown molding. There are gyms, spin studios, resort-style pools, and outdoor kitchens available as common areas, and most of them have rentable game rooms and business conference areas.

Now, luxury apartments are out of reach for almost all of us. Only a small segment of the population is both willing and capable of paying more than $5,000/month for a housing option they don't own outright.

However, in an era where even "budget" apartment options can cost more than $1,000/month to rent, the notion of paying 2 - 3x that amount may not seem all that unreasonable. Between the shiny appliances, garden tubs, and pool cabanas, you may think it's worth it.

Are you saying they're not worth it?

No, I'm not. They may very well be worth the additional money IF you have a plan for how you'll use the new features available to you.

At a basic level, most apartments are roughly the same. They offer a bedroom, kitchen, and bathroom. They give you a place to stay and relax.

If that's all you need from an apartment, then an upscale place may not be the choice for you. After all, so long as you choose a place that is near your anchor location, safe, and free of infestations or damage, it doesn't matter if there's any bells and whistles.

However, if you plan to live at the luxury pool, use the onsite gym, and spend lots of your time onsite but outside, then you might want to splurge a bit. I've seen complexes with their own bowling alleys, their own podcasting studios, and their own car washes.

In short, spend the money if you're going to use the amenities onsite extensively and frequently. If not, find a clean, dry place without crime issues near your desired area, and pay as little as you can.