why are developers only building luxury housing

People also ask


  • Why don’t developers build more luxury apartments?

  • Since developers can only build efficient multi-family housing in a few spots, they have to make their profit by building luxury units. That’s the whole point of the car analogy in the article.

  • Are luxury developments the new way to rent out your home?

  • It’s not any old apartment building going in, either, but luxury developments geared to entice renters with more amenities, higher-end retail options and a lifestyle that could even tempt existing homeowners.

  • How many luxury apartment communities are being built in the US?

  • In fact, apartment developers in the 150 largest US cities delivered 395,775 new housing units last year, which marks a 46% increase Y-o-Y. Of these new housing units, nearly 75-80% of them are considered luxury communities. While living in Boston over the past few years, I have witnessed many major developments being built at a breakneck speed.

  • Is the luxury housing market overbuilt?

  • The article surmises that the upper end of the luxury market is overbuilt and susceptible to a flattening or a market correction. In fact, apartment developers in the 150 largest US cities delivered 395,775 new housing units last year, which marks a 46% increase Y-o-Y.

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