What is a penthouse? Pros and cons of living in one

Historically, the term “penthouse” referred to small houses constructed on the roofs of tall buildings, which were distinctly not fancy. But the invention of the elevator—along with increasing demand for space, privacy, and quiet in crowded cities—gave the concept new life. 

A penthouse is defined as a structure that is set back from the outer walls on the upper levels of a building. Used more loosely, the term can refer to any top floor unit (even if it’s not set back). Real estate developers and agents even push the usage of the term to include units on one of the top floors (even if it’s not the very top). 

But while what kind of unit counts as a penthouse might be somewhat open to interpretation, how a penthouse feels isn’t. Today, the idea of penthouse life is synonymous with luxury. 

With no other residences above or on either side of the penthouse, the units on the top of the buildings feel more like expansive, luxurious homes rather than condos or apartments, which commands a premium price. Their top-floor location also creates opportunities for features that other units in the building can’t have—think: vaulted ceilings, terrace spaces, and pools.

While the actual sticker price varies from city to city, it’s hard to find an inexpensive penthouse apartment, whether you’re renting or buying. Because it costs more than the other units in the building, a typical luxury penthouse often also comes equipped with luxury amenities like floor-to-ceiling windows, a private elevator, and private outdoor space.

While the best unit in the building could seem like an obvious choice, it comes with its benefits and pitfalls just like any other real estate decision. 

Advantages of living in a penthouse

• The view. While living in a lower unit leaves your windows vulnerable to being blocked by nearby buildings, living in the top floor penthouse means you’ll likely be able to get a bird’s eye view of your city.

• Square footage. Being in the top-most unit, or at least taking up an entire floor of a building, means you’ll have a more expansive floor plan that may include outdoor space. 

• Privacy and security. Since many penthouses include private entrances, you can rest assured there won’t be neighbors or guests wandering by your front door at night.

Disadvantages of living in a penthouse

• The potential for being upsold. Because the definition of the term “penthouse” has many definitions in real estate, you need to be educated on the definition that matters to you and stay firm on your criteria.

• Sticker price. Even if you are getting a good deal, a penthouse will still be more expensive than a standard unit, so make sure you’re financially ready to take on such a large investment.

• Maintenance costs. With more square footage and luxury features comes more responsibility. Keeping a larger place clean might require help from a cleaning service. And when fixtures or appliances break, repairs or replacements will be more expensive. Do a long-term financial projection to make sure you can afford not only the price of a penthouse unit but the cost of living in one.

Bungalow is the best way to live with roommates. Our homes are designed for shared living, located in the best neighborhoods, and take care of the details—like furnishing common spaces, scheduling monthly cleanings, and handling payments. Whether you already have roommates or are looking for new ones, there’s a Bungalow with your name on it. Find your Bungalow.