Falling Prices Put Luxury Apartments Within Reach for More Renters
March 18, 2021
As vacancies rise and rental rates fall, a growing number of renters are looking to trade up their apartment units.
Renters who are searching for luxury apartments recently reached a record high, according to a new analysis from My Affordable Luxury, which tracked Google Adwords data. Search volume has remained at high levels over the past year since the pandemic began.
Some urban areas of the country saw renters leave as the COVID-19 outbreak began in the U.S. last spring. Vacancies mixed with a glut of newly developed luxury apartments forced some property owners to cut their prices and offer concessions to try to lure more renters back. Some developers are reportedly offering up to four months rent-free as an incentive to get more entice tenants.
“After months of people leaving the city, we have seen an enormous amount of renewed interest in luxury rentals,” says Tina Bacci, leasing director for Resis Real Estate. “I had competing offers this past week on a newly listed apartment.”
As prices drop, luxury apartments are suddenly becoming more affordable to a larger number of people, particularly mid-range renters, My Affordable Luxury notes in its study. The pandemic has also prompted more renters to seek out larger units that offer more space to spread out. Also, some renters are showing a desire to stay put in the same building but upgrade to larger units.
“As vaccination programs pick up pace and cities start reopening, many urban dwellers will slowly return home,” researchers note.
The following is a chart showing the cities with the highest number of luxury apartment searches.
“Number of Renters Purposely Searching for Luxury Apartments at an All-Time High,” My Affordable Luxury (March 10, 2021)
Updated: April 19, 2021