OK, so you made a decision that you will rent an apartment. What is the first thing that you think about? Price? Location? Quality of the apartment? I can recall when I was looking for the apartment in NYC, all I cared was the location and the price; I really didn’t care about the quality of the apartment I would be moving into. But still, the only thing I wanted from that place was to fit in the definition of “apartment”. I talked to many people since then and I found out that some would rather choose the quality of the apartment than the location of it. Others were like me, they just wanted good location and they didn’t put much emphasis on the quality of the apartment or building at all.
Great location is more important?
People always dream about the good quality apartment in a great location which would fit their budget; I think they just want to have their cake and eat it too:-). Are they just looking for something which doesn’t exist? Are they searching for a unicorn? Perhaps.
In large cities, the extremes are very easy to find and they are always available. If the money is not an issue, you will always find a great quality apartment in great neighborhood. On the other hand, if you don’t care about the location or the quality of apartment, you will also have the abundance of options. But the apartments which fit in the middle of two extremes are hard to find. In NYC, Chicago and Los Angeles more than 60 percent of people rent their homes, yet real estate developers continuously build luxury rentals which only a handful of people can afford; which is why, if the money is not an issue, you can always find a luxury apartment in a great location.
I understand that developing a luxury building cost almost the same as developing just the regular residential building. Because it’s a luxury building, developers or property managers can charge higher rent, but in most cases they will not have 100 percent occupancy. So why not start developing properties which will fulfill the needs for people who fit in between two extremes? There is always demand for those units and they will most likely always be fully occupied.
Or apartment itself is more important?
I only want to understand what is the main reason that people rented apartments they currently live in? Is it because the apartment had dishwasher, A/C, hardwood floors, large rooms and elevator in the building? Or is it solely because it is in the location which is close to everything they like?
Is it because the building had the gym? Or because the apartment is located one block away from school where their kids go to?
There should probably be some combination of both the quality of apartment and the location. I’m wondering, if the price of two apartments is the same but one is in great location although very small and old, and the other is a brand new apartment with every single amenity included and lots of space, which one would people choose? Can people make a decision solely on quality of the apartment? Or solely on the location and neighborhood?