Determining Apartment Rent: The Value of Amenities, Services, and External Factors

This paper examines the effects of various amenities, services, and external factors on rent for multifamily housing. The attributes studied include amenities and services such as covered parking, modern kitchen, and maid service, occupancy restrictions such as no pets allowed, and external factors such as traffic congestion, proximity to work, and access to public transportation. The empirical results show that a number of these characteristics do affect rent. Specifically, such items as covered parking and modern kitchen are important determinants of rent. External factors such as traffic congestion and access to public transportation also have a significant impact. A model is presented to compare the costs and benefits of providing certain amenities and services.