What is a penthouse? (It wasn't always as luxurious as you think)

A penthouse: the name itself has become synonymous with luxury, but many people are not entirely sure what it actually means. If you ask the average person, “What is a penthouse?” chances are they might be mistaken and associate it simply with tall buildings, high ceilings, or perhaps flashy details such as gold decorations.

The truth is that the subject is both simple and complex at the same time, with a fascinating history that reveals the origins of the penthouse and its evolution alongside technological progress and the growth of modern cities.

“Mabbat Studio” spoke with architects in New York and real estate agents specializing in penthouses in order to break down the myths and describe what these luxury residences truly include, where they came from, and what it actually means to live in a penthouse.

As cities grew larger and taller, building owners began constructing penthouses — which were originally simple storage spaces — on rooftops. These spaces were used for storage or even as living quarters for people working in the building. The upper floors, which were less accessible, hotter, and poorly ventilated, were considered less desirable units. When the Dakota building in New York opened in 1884, the lower apartments were considered the most prestigious and were reserved for the wealthiest families, while the upper floors were used for storage, laundry rooms, and servants’ quarters.

What is the history of penthouses?

Penthouses have much more modest origins than one might assume today. In fact, they began as storage structures. The term “penthouse” dates back to the 16th century and comes from a combination of Old French and English, originally meaning a small attached house with a sloped roof — essentially a shed-like structure added to a main house for storing tools or food, or for housing animals.

After World War I, penthouses began their social rise. The post-war economic boom led to increased urban migration, which drove the construction of apartment buildings and creative solutions for maximizing limited space. Passenger elevators, first installed in New York in 1856, became essential as buildings grew taller, making upper-floor apartments more accessible and desirable.

By the 1920s, developers such as Emery Roth began incorporating terraces into top-floor apartments, marking the beginning of the penthouse as a symbol of luxury.

As buildings became taller, architects such as Rosario Candela and Emery Roth began to recognize the value of designing luxury residences on the upper floors, which offered privacy, panoramic views, and opportunities for private outdoor spaces. During this period, prestigious townhouses in neighborhoods such as New York’s Upper West Side were gradually replaced by high-rise buildings, and wealthy residents began moving into luxurious apartments on the top floors.

In 1926, writer Andreas Bernard described how a wealthy family even allowed their home on 92nd Street and Fifth Avenue in New York to be demolished and recreated on the top floor of a newly built apartment building in its place. Penthouses — now associated with luxury living — evolved from an architectural curiosity in the early 1920s into a full luxury trend by the end of the decade.

Characteristics of a Penthouse

On paper, it is quite simple: a penthouse is an apartment or condominium located on the top floor or part of the top floor of a building. A penthouse does not necessarily need to occupy the entire floor, as long as it is positioned at the highest residential level.

“In simple terms, a penthouse is a residence that occupies the uppermost level(s) of a building — a ‘crown jewel’ rising above the city’s noise,” says Tara King-Brown, a broker at The Corcoran Group in New York.

Generally, penthouse interiors are characterized by higher ceilings, premium finishes, and unique outdoor space. The advantages of penthouses include unobstructed views, greater privacy, and abundant natural light.

Types of Penthouses

Penthouses come in a variety of sizes and configurations, including duplexes, triplexes, full-floor units, and more. These luxury residences are often equipped with panoramic views, floor-to-ceiling windows, spacious terraces, rooftop pools, private entrances, and even private elevators.

In some cases, they may also include unique features such as a private helipad or beautifully designed rooftop gardens.

Disadvantages of Penthouses

Penthouses also come with drawbacks, including a significant price premium. King-Brown explains that maintenance costs are typically higher because a penthouse is usually the largest unit in the building and often requires additional external upkeep, such as landscaping or terrace maintenance.

What to Check Before Buying a Penthouse

As with any top-floor property, it is essential to carefully inspect the condition of the roof before purchasing. “When I sell penthouses, I always advise clients to examine the condition of the roof and upper façade and ensure there have been no leaks,” says King-Brown.

Is It Hard to Sell Penthouses?

The penthouse market is smaller, mainly because these units carry a high price tag and have unique features. As a result, they can take longer to sell compared to more standard apartments.

Are Penthouses Always Located on the Top Floor?

Yes. By definition, a penthouse is a residential space located on the top floor of a building, although in some cases penthouses can span multiple upper floors.

Is a Penthouse Suite Different from a Regular Penthouse?

In most cases, the terms “penthouse suite” and “penthouse” refer to the same thing. “It is simply a more luxurious way of describing the same concept, as a suite is essentially a collection of rooms,” says King-Brown.

For example, we often use the term “primary bedroom suite” to describe a space that includes the main bedroom along with walk-in closets and en-suite bathrooms.

Are Penthouses More Expensive in New York Than Mansions Elsewhere?

It is difficult to compare such different property types across different markets, but penthouses in New York are among the most sought-after properties in the world.

“One could say that penthouses as a property type are considered more prestigious in New York than in many other locations,” says King-Brown.

Do Penthouses Have Standard Floor Plans?

No. There is a wide variety of penthouse layouts, and many are unique due to the specific architectural characteristics of the building itself.

Do Penthouses Always Have Higher Ceilings or More Space Than Other Apartments?

Not necessarily. Penthouses come in a wide range of shapes and sizes, and they are not always larger or more luxurious than other units in the building.

If I Live on the Top Floor of My Building, Can I Call It a Penthouse?

Yes — you can refer to your top-floor apartment as a penthouse, even if it is relatively small. King-Brown even encourages this perspective: “If you live on the top floor of your building, then you are living at penthouse level,” she says.