Most apartment buildings built and completed during the first half of 2018 are for luxury markets, says a new nationwide survey by rental listing site RentCafe.
In fact, approximately 87 percent of larger apartment buildings completed between January and June 2018 were for the high end of the market. In comparison, new construction on the high end was slightly more than half six years ago, and in 2017, the market share was 79 percent. CBS News reports that builders and investors tend to focus on these sorts of projects that are high on amenities because metros undergoing revitalization plans typically offer tax breaks, as part of their push for attracting affluent residents.
What's considered a high-end apartment? RentCafe used a complicated series of ratings, including the size of the washer and dryer within the unit. But the best way to analyze it is by the price renters are willing to pay for "luxury" -- even if they don't want to. The average rent for A+ or A rated rentals, which now account for 54 percent of all construction, is $2,146 a month for slightly more than 900 square feet.