The L-Word Can Be Meaningless, But the F-Word Delivers

In today’s competitive market, multifamily developers lean heavily on fully amenitized buildings to attract residents—so that means it’s time to talk about the L-word.

LUXURY. Of course.

But when absolutely everything is labeled “luxury,” what does that really mean?

It’s basically become the default way to justify market rents and position properties in the Class A space. But educated, savvy consumers who can afford these rents have figured out that just calling something “luxury” doesn’t make it true—and that upsets them.

The fear of dropping the word "luxury" is understandable—we worry our projects will seem second-rate without it. But properties that lean too hard on the L-word often fall short, leaving residents disappointed when the experience doesn’t measure up. They aren’t quiet about it on social media, don’t usually stick around, and often help poison the next batch of prospects.

The more we use the word “luxury,” the less it means, and the more confused and frustrated prospects get. So what do we do?

Follow M. Scott Peck
My logic says we spend a lot of money on amenities, and they appear to be an important psychological as well as competitive necessity, so I say we take the road less traveled to the same destination.

A Universal Human Experience
What we need to remember is that luxury has always been about more than appearances. Across cultures and time, the visual markers of luxury change, but the experience remains the same—more ease, comfort, convenience, and enjoyment. Less effort and stress, more privacy and personal space.

If using superior quality finishes to hit all the visual markers of luxury keeps the project from penciling, what CAN we do better (that we have to do anyway) to provide the time-tested experiences associated with luxury?

We research, come up with a strategy, and set specific design goals to intentionally provide the experience of luxury in ways that will resonate with both our target audience AND our budgets, finally making honest people out of ourselves when we use that L-word (over and over and over...and over).

On to the F-Words
Functionality. We can pay off the promise of luxury with how our spaces function for people by delivering more comfort, privacy, wellness, time, convenience—whatever signals a luxury experience to the target audience. And those expectations have shifted tremendously when it comes to Millennials and Gen Z. So the number one rule remains—know your audience.

Next, Form. See what I did there? Form always follows function in architecture, and visual design will always play a key role, but it’s not all about extravagance and trend-chasing. The finishes don’t need to be the most expensive, but they DO need to make sense and show intentionality.

Intentionality signals authenticity. Authenticity builds trust. Trust builds reputation. And now we arrive at what we all strive for—5-star Google reviews to help us attract and retain tenants and improve our ROI.

So About Those Stories You Don’t Think You Really Need...
We all know the numbers have to work. And when premium finishes aren’t in the budget, storytelling becomes our most powerful tool.

A compelling narrative gives context to design choices, so they feel intentional, not like cheap substitutions. Without a story, residents judge what they see at face value—and what they see can feel underwhelming. But with a story, those same finishes become meaningful, even necessary, to bring the narrative to life.

This intentionality signals authenticity, and authenticity builds trust. When they trust, they’re far more likely to stay, provide positive reviews and recommend our property to others.

Delivering on the Experience
The way we market and tour the project must also highlight the experience of luxury intentionally woven into the design. Leasing teams need to bring the narrative to life, showing prospects how the space supports their lifestyle—how it makes their daily routines easier, more comfortable, and more enjoyable. It isn’t just a walkthrough—it’s a chance to make the experience tangible and leave residents thinking: “This makes sense— I’ll be comfortable here, and life will feel easier.”

So when it comes to the L-word—it’s really all about inspiring our residents to say it back.