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Disaggregation of Local Apartment Markets by Unit Type

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Abstract

Recent market segmentation research has begun to delve into the issue of whether traditional property-type categories are sufficiently homogeneous to be modeled as aggregate real estate markets. This article extends the research on rental-property market segmentation by investigating the existence of apartment submarkets determined by unit type. The study finds that one-bedroom, one-bath units; two-bedroom, one-bath units; and two-bedroom, two-bath units function as distinct submarkets differentiated by property features, neighborhood location, and temporal changes in market rent.

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Author information

Authors and Affiliations

  1. Department of Finance, Insurance and Real Estate, College of Business and Economics, Washington State University, Pullman, WA, 99164-4746

    Marvin L. Wolverton

  2. Department of Finance and Economics, Mississippi State University, Mississippi State, MS, 39762-9580

    William G. Hardin III

  3. Department of Economics and Finance, Salisbury State University, Salisbury, MD, 21801

    Ping Cheng

Authors
  1. Marvin L. Wolverton
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  2. William G. Hardin III
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  3. Ping Cheng
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Wolverton, M.L., Hardin, W.G. & Cheng, P. Disaggregation of Local Apartment Markets by Unit Type. The Journal of Real Estate Finance and Economics 19, 243–257 (1999). https://doi.org/10.1023/A:1007884628153

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  • DOI: https://doi.org/10.1023/A:1007884628153

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