CHAPTER 7
RESULTS FOR RESIDENTIAL REAL ESTATE
This chapter focuses on the results from the empirical analysis on the apartment
market. An additional benefit of the analysis on apartment markets is the relative
simplicity and homogeneity of apartment leases, which simplifies modeling relative to
office and retail properties.
Summary statistics for the variables of interest are presented in Table 8. The first
two columns present a summary of the data at the aggregate level, while the remaining
columns present statistics for each of the 15 markets studied. The average apartment
complex in the sample is 49 years old, contains 23,034 square feet of improvements, is
built on 40,162 square feet of land area, has 27 units, 2.5 floors, 29 parking spaces and
sold for $2,194,040.
With an average age of 79 years properties in New York and Boston tend to be
much older than in other markets across the country. Phoenix has the newest apartments
with an average age of 27 years. The apartment buildings in the sample tend to be the
largest in Phoenix with an average size of 76,688 sq. ft. Oakland is the market with the
smallest average size of apartment buildings, both in terms of square footage (12,267)
and number of units (15).
Approximately 13 percent of the transactions involve the purchase of a replacement
property to finalize an exchange; 12 percent involve the sale of the relinquished property
in an exchange; and eight percent involve the sale of relinquished property that is also the
replacement property of the buyer in a separate exchange.