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The Austin skyline.  

The Austin skyline.  

Photographer: Matthew Johnson for Bloomberg Markets

Wealth
Living

Cities Keep Building Luxury Apartments Almost No One Can Afford

Cutting red tape and unleashing the free market was supposed to help strapped families. So far, it hasn’t worked out that way.

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Emily Young throws open the shades of the three-bedroom penthouse. “This is amazing,” she says, walking past the wine fridge and wet-dry bar. “Look at that fireplace.” Young, a real estate agent with a Marc Jacobs handbag on her hip, is giving a tour of one of the most luxurious apartment buildings in Austin.

At the Hanover Republic Square, there’s a “vinyl parlor” with a DJ-quality turntable; a movie theater; a dog-­grooming spa; and a rooftop pool on the 44th floor. There, you can gaze at sunsets—and a neighboring skyscraper. Nearly complete, it rises 66 stories and will have a pool to rival the Hanover’s. Actually, that’s not quite right–it’s “pools,” plural. There will be three of them.