If you want to live by yourself or want to move to a new area, you have likely been looking at studio apartments. Studio apartments are usually seen as an affordable way to get your own place.
If you have been seeing the price of studio apartments lately, you may be curious as to why studio apartments are so expensive. I looked up the facts, and here is what I learned!
Why Are Studio Apartments So Expensive?
Studio apartments are expensive due to the materials and renovations used to make the apartment. Moreover, a convenient location and various amenities can make a studio apartment costly. Additionally, studio apartments can be expensive based on the size. Some landlords may charge tenants more for utilities, maintenance, association fees, etc.
Are you curious to find out more facts about what affects the costs of studio apartments? I made a list of factors below, so read on!
1. Renovations In The Apartment
Typically, one of the main reasons studio apartments can be expensive is any renovations that were done to the studio apartment.
Renovations take time, money, and labor to get done to enhance the overall studio apartment, which landlords and owners factor into the rental price of the studio apartment.
Therefore, a newly renovated studio apartment would cost more than an apartment that has not been renovated.
Usually, another prime factor that determines the cost of a studio apartment is the location of the building because the location determines the value of the real estate.
For instance, let us say that the studio apartment is in the middle of the city surrounded by office buildings, meaning it will be convenient for you to walk to work.
Another example is a studio apartment next to tons of restaurants, cafes, malls, groceries, etc., which means basic necessities and entertainment will be easily accessible for you.
When you live in what is considered a prime location, the price of rent for studio apartments will rise because many people will want to live in that area for convenience.
Utilities are services and resources provided by outside services, which include gas, electricity, water, cable, and internet.
In some cases, landlords will offer for the utilities to be included in the rent for a studio apartment, but this can greatly drive up the costs.
Luckily, this can be avoided by paying for your own utilities in a studio apartment that allows that arrangement.
Typically, the amount of amenities in an apartment building can add more value to living in the building, which can raise the rental price of your studio.
For instance, many apartment buildings add gyms and laundry rooms for tenants to utilize without leaving the apartment building.
Therefore, the more amenities that the building has, the more expensive the studio apartment will be.
Usually, apartment buildings require a lot of maintenance to look and function properly, which normally gets paid for via the maintenance costs that the landlord covers.
For instance, let us say a pipe broke in your building, but no tenants caused the pipe to break so the landlord pools funds from the rental to repair the broken pipe.
Moreover, the fact that you do not have to be in charge of maintaining the building or your studio apartment can add to the cost of your studio apartment.
6. High Cost Of Living
Normally, the cost of living in certain areas will affect how much a studio apartment will cost.
However, the general cost of living in almost every city has been rising steadily due to inflation, taxes, etc.
Therefore, even an apartment building located outside of the main city area can still have expensive prices for studio apartments.
Usually, the cost of living in a certain area can be based on various factors, but it is often determined by how many people want to live there, especially if they are rich.
This often occurs in neighborhoods where rich people often live, and it may not only be because the houses or apartments are nice.
Typically, rich people segregate into certain areas for housing, which can raise the rent of the area because the average person’s salary in that area will be high.
7. Additional Fees
Generally, you will find that most studio apartments charge other fees that may not be included in the rent.
For instance, the most common additional fee that tenants have to pay for are homeowner fees or association dues.
These dues are often used to pay for the staff’s salaries, general maintenance of the building, improvements, etc.
Usually, the size of the apartment will be one of the biggest factors in the price since larger apartments will cost more.
Typically, this will not be a big issue for studio apartments, but even small studio apartments can be considered “large” when you look at one in the main cities.
Normally, you can find studio apartments in big cities, which means that the studio apartment comes with a view of all the buildings.
Usually, the view can affect the price of the rent since a better, undisturbed view makes the property more valuable.
More people want to move to the city area where most studio apartments are located, which creates a spike in demand for studio apartments.
Whenever there is a high demand for a commodity, including a studio apartment, the price gets higher as the supply gets lower.
11. New Building
Normally, newer buildings will have more expensive studio apartments because the building will likely be made from newer and high-quality materials.
This means that the building will likely be sturdier, more modern, and more pleasant to look at, which can greatly increase the rental price.
For instance, a new building that has marble countertops will be more expensive than an older building with tile countertops.
While studio apartments should be cheaper than larger apartments, various factors like the how new the building is and any renovations can raise the prices of the studio apartment.
Moreover, studio apartments in prime locations with various amenities, a good view, etc. can be more expensive.