Many people want the newest and shiniest things, be it cars, computers, handbags or golf clubs. The same holds true in the apartment industry, but sometimes older developments with a little wear and tear can bring good return for investors – and more affordable housing for residents.
Class A properties are the new and shiny developments and the driver of the industry as a whole. Axiometrics determines class level by the rents charged, so Class A units carry the highest rents and are attractive to higher-income tenants.
The consumers are the ones who determine the class level. They say, “I am willing to pay this much more to live here” because of location, amenities and other factors.
Read more...Class Does Matter—Especially with Portfolio Analysis
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