Luxury Apartments Continue to Thrive in U.S. Cities Despite Housing Recession

Despite a housing recession, more than 400,000 luxury apartments are expected to be completed in the US in 2023, with much of the new stock built for upper-tier customers. Market-rate rents for new apartments can easily be multiple thousands of dollars monthly, making them unaffordable for moderate-income Americans. Builders blame the high cost of housing on the large amount of regulation in the housing sector, with 40% of the cost of multifamily development being in regulation. The Biden administration has announced a housing action plan to shore up housing supply within five years, but it may not have a material impact on prices for some time.