Verticalization

The verticalization of neighborhoods with luxury buildings attracts a demographic of dwellers that rent by choice not necessity, labeled as “discretionary” renters by Yardi Matrix.

[6] John Lauermann defines luxury housing as a property that reaches the minimum threshold for the “mansion tax” in his research into vertical gentrification in New York City.

[2] The effects of verticalization are similar to those of gentrification including an increased neighborhood economic value, residential demographic change, and displacement of current residents.

[8] High-rise luxury buildings predate World War II when they were designed to facilitate the transition away from a servant-dependent society and provide mass public housing.

As of 2020, a renter preferences survey performed by the National Multifamily Housing Council and Kingsley Associates consulting firm showed that 44% of residents consider amenities an important factor when choosing where to live.

[14] As the list of benefits to high-rise living increases, the price of each unit begins to reflect that which attracts a more affluent social class.

[15] As more luxury high-rise buildings are developed in densely populated and heavily sought after areas, more members of the elite class are interested in buying.

The features unique to a luxury high-rise building, like exclusive panoramic views, became synonymous with wealthy inhabitants and cycled through until they were rarely attainable to middle and lower social classes.

However, since the end of the pandemic, buyers and renters moved back from the suburbs and rural areas to cities and commuter towns.

[22] One of the risks involved with living in a high-rise includes an increase in viral transmission through the sewage system and shared spaces like stairs and elevators.

[23] Poor construction consequences like leaks, failing equipment, and maintenance negligence in common spaces makes the amenities associated with high-rises out of service.