CAMBRIDGE, MA / ACCESSWIRE / November 30, 2021 / ApartmentAdvisor, an online apartment search platform, today released a study examining popular apartment amenities and their impact on rent prices. The research suggests that apartment renters can find substantial savings by forgoing some key amenities when searching for their next place, while features with less price effect may be worth keeping on their wish lists.
So, which amenities have the biggest impact on rent prices? Topping the list of priciest perks is the on-site fitness center, which study data shows can drive up rents by nearly 10%, or $159/month based on the national median 2-bedroom rent of $1590. Renters will also pay roughly 8% more for a place with an in-unit washer-dryer, which is one of the most coveted rental features according to ApartmentAdvisor search data. Likewise, attached outdoor spaces, which became especially sought-after during the pandemic, also drive prices up. Renters can expect to pay at least 7% more ($111/month) for a unit with a balcony and 5% more ($80/month) for a patio.
At the other extreme, popular features such as dishwashers, garbage disposals and even air-conditioning have much less of price impact - around 2%. Other extras such as pet-friendly rental policies, hardwood floors, basements and yards were found to have negligible effects (<1%) on price in this study. Notably, a pet-friendly rental policy is the most sought-after feature among renters according to ApartmentAdvisor search data. Most properties charge additional pet fees beyond the advertised rent for tenants renting with pets.
Which Apartment Amenities Impact Rents Most?
|% Effect on Rent Price||Estimated Monthly Cost (Based on $1590 Nat'l Median 2-bed Rent)|
On-site fitness center
On-site swimming pool
For this study, the company analyzed more than 250,000 apartment listings available for rent nationwide. Analysts used a linear regression model to calculate the effect of the most common non-essential property features, controlling for the effect of unit size and location, which are the primary drivers of rent prices.
"While location and unit size are the biggest drivers of rent, our research shows that some amenities have more of an impact on price than you might expect," said Tom Gilmore, co-founder and CEO of ApartmentAdvisor.com. "The key for renters searching for their next place is to define their must-haves and determine what they can live without, and then focus their online search accordingly."
For this study, analysts at ApartmentAdvisor examined more than 250,000 apartments listed for rent in locations nationwide, then used a mathematic linear regression model to determine the average price effect of the most common apartment amenities, controlling for the effect of size and location. The values of amenities were determined as a percentage of rent based on that amenity alone compared to like-units without that amenity. Often, units have more than one of these amenities and in such cases, the overall total effect would be less than the sum of each of the values noted. Analysts also note that availability of some amenities varies based on location, and the building's class and age. The percentage calculations represent a nationwide average; specific valuation percentages may vary slightly from location to location. The estimated dollar amounts noted in association with each amenity were extrapolated from the national median 2-bedroom rent ($1590/month) as reported in ApartmentAdvisor's October National Rent Report. Percentages in the chart above were rounded up to the nearest whole number. For more information about this study, please contact [email protected]
ApartmentAdvisor (www.apartmentadvisor.com) helps renters easily find the right apartment at the right price. The company is building a rental search platform that combines rigorous rent price analytics with neighborhood insights, empowering renters with a more transparent way to compare prices, features and locations of available apartments.
ApartmentAdvisor was founded in December 2020 by a team of founders and engineers from Tripadvisor and CarGurus, including Langley Steinert (also co-founder of Tripadvisor and founder and executive chairman at CarGurus); Tom Gilmore (founder and former CEO of VacationHomeRentals, sold to Tripadvisor); Josh Arnold (former engineering lead at Tripadvisor and former director of data science for MineralTree); and Oliver Chrzan (former CTO at CarGurus). The company is based in Harvard Square in Cambridge, MA.