By: Nicholas A. Dunlap, CPM
Numbers published today by Realfacts data and statistics show that some of the largest reductions in rent were incurred by the smallest apartment homes. For example, bachelors, studios, junior one bedrooms and one bedrooms suffered a decline of approximately 7.3% to 11.4% in monthly rental figures, whereas two and three bedrooms suffered a 4.6% to 7.4% drop.
These numbers coincide with what we have experienced across our portfolio. One bedrooms not only suffered the largest drop in monthly rents, but also experienced the highest turnover ratio as our residents left to either move-in with friends, family or roommates, doubling up to save money. While most areas have recovered and are experiencing somewhat regular interest and activity, the central and west Anaheim markets have been hit harder and it is becoming a battle of “rent adjustments and move-in specials” on one bedrooms.
In Anaheim, the battle has grown to include many of the “Rondos” (failed condo projects that have become rentals) located in the nearby Platinum Triangle area. While this is in fact an increase in competition, it has encouraged us to adjust our own marketing and rental rates in an effort to meet our occupancy goals.