Disaggregation of Local Apartment Markets by Unit Type

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 paper 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