On Setting Apartment Rental Rates: A Regression-Based Approach
This study presents a regression-based analysis of apartment rents for a cross-section of properties located in an "edge city" submarket. It attempts to provide a solution for owners and managers of apartments to the thorny problem of setting a property's rental rate. The approach used in this analysis differs from previous studies in at least three important respects: (1) vacancy is treated as part of the dependent variable, (2) the property-specific rental rate generated by the regression analysis is compared to the property's actual effective rent, and (3) each property in the submarket is ranked by the difference between its actual effective rent and its characteristic-adjusted effective rent. This is then followed by several observations concerning the advantages and disadvantages of such an analysis in a practical setting.
Volume (Year): 12 (1996)
Issue (Month): 1 ()
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- G. Stacy Sirmans & John D. Benjamin, 1991. "Determinants of Market Rent," Journal of Real Estate Research, American Real Estate Society, vol. 6(3), pages 357-380.
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Real Estate Economics,
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- Kahneman, Daniel & Tversky, Amos, 1979. "Prospect Theory: An Analysis of Decision under Risk," Econometrica, Econometric Society, vol. 47(2), pages 263-291, March.
- Amos Tversky & Daniel Kahneman, 1979. "Prospect Theory: An Analysis of Decision under Risk," Levine's Working Paper Archive 7656, David K. Levine.
- Colin Read, 1988. "Advertising and Natural Vacancies in Rental Housing Markets," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 16(4), pages 354-363. Full references (including those not matched with items on IDEAS)
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