A luxury houseboat docked in the heart of Amsterdam is selling for $1.5 million. Here's a look inside the 'floating palace.'

• Sotheby's International Reality is selling a houseboat for $1.5 million.
• The three-bedroom, two-bathroom houseboat, named De Friese Franje, is docked on the Amstel River in Amsterdam.
• Sotheby's characterizes the vessel as a "floating palace."
• Houseboats are surprisingly trendy, thanks to money concerns - in America, rent prices in some cities are skyrocketing so high that people are turning to houseboats instead, Business Insider's Hillary Hoffower reported in May.
• Visit Business Insider's homepage for more stories.

Sotheby's International Reality is selling a "floating palace" for $1.5 million.

The houseboat, named De Friese Franje, is situated on the Amstel River in the heart of Amsterdam in north Holland. Encompassing 1,560 square feet, De Friese Franjehas three bedrooms and two bathrooms. It also has a sun terrace and a modern kitchen outfitted with stainless steel appliances.

According to Sotheby's, De Friese Franjehas was renovated over the past year and a half. Those renovations included the addition of sustainable materials like an oak wood floor, soft leather walls, and matted glass in the bedroom.

While houseboat living may not sound appealing to some, it's a very real alternative for the thousands of people who are being priced out of major US cities like New York and San Francisco because of increasingly unaffordable rental markets.

Here's a closer look at the luxe houseboat.