Hi, Today we are talking about a rental market update for the Old Town neighborhood.
Overall, in Old Town, we see rental rate rising. We see young professionals increasingly being tenants in the Old Town neighborhood. They want to be close to downtown work. We’re seeing a trend that buyers and tenants tend to be overwhelmingly young and female. Tend to be young professionals. And we’re also seeing more families with children moving into the neighborhood.
In the video you’ll see a diagram of the rent rate curves. The curve can help you visualize rental rates as a function of size, so you can deduce that if you have 500 SF apartment, on average your guessing about 80 cents a foot.
The next chart is a diagram of rent per SF against average score–we gave each unit a ranking from one to five for condition and location. And so we averages those two numbers together to give us and average score and of course, you can see here that there is a correlation between location and the rental rate. Now, it’s not as tight as you would expect. so there are some people that are leasing units that are not quite that nice or not in a great location and their still getting $1.05 a square foot.
You know, so I think would tell you if it’s not a perfect market in Old Town and that there’s a lot of demand and sometimes people are making due with units that aren’t quite that nice.
The overall trend of the rental rates is rising, so here you see that over the past four years the rental rates have gone from an average of 80 cents a square foot to about 87 cents a square foot. So your seeing slow and steady increase in the rental rate.
We also have a shown the changes in the rent curves over time. You see a for a 500 square foot apartment it would give you about $1.10 and then these are the two curves for 2019 and 2020. So you see pretty evenly spread here. We actually removed a few rentals form 401 Broad, listened to their legacy, rents, they actually brought the curve down so when you remove those outliers, the curve actually fits pretty steadily in there.
So, that is our Old Town rental market report. Overall, a great trend, we are seeing a lot of good things happening in the neighborhood.
We would love to hear from you. What are you seeing Downtown? What are you experiencing with rental rates? Please like and share, comment below, subscribe. We’d love to hear from you and thanks for watching, and have a great day.