Why are there so many Luxury apartment complexes being built?

by | Jan 22, 2024 | 0 comments

You may or may not know, apartment rental prices are connected to mortgage payments in the area.  Remember not too long ago when you could rent a 2-bedroom apartment in a nice area for $1200/month?  Well, at that point, you could also own a home in that same area for about $1800 a month.  Now you can’t hardly find a 1-bedroom apartment for under $2500 a month without going to older communities.  The luxury apartment builders know that many can afford the $2000-$4000 a month monthly payment, however coming up with a down payment, closing costs, etc. is more challenging.

As a result, many potential first time home buyers have given up trying, opting instead for luxury living, with zero ownership.  I’d like to encourage you to not give up on the dream of owning your own home!  I remember back in 2010 clients who decided to wait for prices to come back down under $200k; are still waiting!  And then a few years ago, clients were waiting for home prices to come back down under $350k, and now we have a new set of potential clients waiting for the next downturn in the market.  Why are luxury apartment communities popping up all over the place right now?  Because they do not expect a significant drop in market value!

Those units they are pre-renting at $35000 a month, they expect to keep renting those at their current price or higher!  They are informed enough to bet on the growth in Phoenix continuing.  They are smart enough to realize that many will take the easy way out and not save for a down payment, rather opting for paying someone Elses mortgage and watching their rental rate increase each year!

Nothing will solidify your financial future more than home ownership!  You have privacy, pride of ownership, tax breaks, and appreciation!  It’s better to bite the bullet now, and spend a lifetime being thankful you did, rather than kicking that can down the road, lining someone Elses pockets, regretting that you didn’t take advantage of things when they were more favorable than “today”.  Call today, and let’s discuss some home buying strategies that will have impact on you and your family that will last a lifetime!


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