By Candice Milano & Malessa Rambarran, Licensed Real Estate Professionals
When people think about maximizing returns in real estate, they often focus on location, finishes, or amenities. While those factors certainly matter, one of the most powerful (and often overlooked) drivers of profitability is the floor plan. Yes, we’re talking about layout—not just square footage. Two apartments with identical square footage can perform very differently in the market, simply because one was thoughtfully designed for the end user—and the other wasn’t.
Here’s why floor plans deserve a front-row seat in your investment strategy.
There’s No “Perfect” Layout—Only the Right One for Your Audience
Forget the idea that there’s a universally “good” or “bad” floor plan. A layout that works beautifully for one group might fall flat for another. The key question to ask is: “Who are you building for?”
Is your target renter a young professional working from home? A couple with a toddler? A traveling nurse? Each of these groups has different needs—and your floor plan should reflect that. Work nooks, oversized closets, flexible dining areas, and split-bedroom layouts all appeal to different lifestyles.
Smart investors design with that end user in mind from the start.
Layout Drives Livability—and Revenue
Getting the layout right isn’t just about aesthetics. It directly impacts rentability, price per square foot, and long-term demand. A well-designed space can command higher rents, lease faster, and retain tenants longer—all of which add up to stronger returns.
On the flip side, a poorly planned layout can lead to longer vacancy periods and discounting, even if the unit looks great on paper.
The takeaway? Livability matters—and it starts with the floor plan.
Design Tells a Story
The layout of a home is a reflection of how much thought went into the design process. A floor plan that flows well and considers how someone will actually use the space signals intention, care, and quality.
On the other hand, a generic or inefficient layout sends the opposite message. Especially in competitive or high-density markets, design is one of the clearest ways to stand out.
If you’re marketing a high-end product or targeting a specific demographic, your layout should be tailored to match.
Use Common Sense, Not Just Spreadsheets
It’s easy to get caught up in data, cost per square foot, or projected rent premiums. But at the end of the day, one of the most valuable tools you have is your own judgment.
Ask yourself:
- Would I want to live here?
- Does this layout make everyday life easier—or harder?
- Does it reflect what my ideal renter actually needs?
Renters pay based on how a space feels—not what the spreadsheet says it should be worth. So if something feels cramped, awkward, or impractical, it probably is.
Don’t Let Floor Plans Be an Afterthought
Real estate is filled with complex decisions, but one of the most foundational is how space is laid out. Whether you're developing new construction, renovating, or acquiring multifamily assets, make layout analysis a priority.
Great finishes and trendy amenities can only take you so far. But a floor plan that truly works for your end user? That’s a long-term investment in value.
For more insights into this topic, check out Episode 302 of The Build Up Podcast for Candice and Malessa’s informative episode with Bobby Fijan linked below.
Please note, this content is for informational purposes only and should not be considered financial, legal, or investment advice; always consult with a qualified professional before making any decisions.
