Estimating the Value of Apartment Buildings

10 Pages Posted: 20 Apr 2007

See all articles by James Frew

James Frew

Willamette University

G. Donald Jud

University of North Carolina (UNC) at Greensboro - Department of Accounting and Finance

Abstract

This article applies hedonic modeling techniques to estimate the value of a sample of apartment properties sold in the greater Portland, Oregon area. An equation for value as a function of location, amenities and capitalization rate is derived. This model explains about 95% of the variation in apartment property prices. Property values decline with increasing distance from the city center. Moreover, values are shown to rise less than proportionally to increases in project size and numbers of units and decline with project age, but the marginal effect of project aging is small.

Keywords: apartment properties, Portland, location, amenities, capitalization rate

Suggested Citation

Frew, James and Jud, G. Donald, Estimating the Value of Apartment Buildings. Journal of Real Estate Research Vol. 25, No. 1, 2003. Available at SSRN: https://ssrn.com/abstract=981263

James Frew (Contact Author)

Willamette University ( email )

Salem, OR 97301
United States

G. Donald Jud

University of North Carolina (UNC) at Greensboro - Department of Accounting and Finance ( email )

P.O. Box 26165
Greensboro, NC 27412
United States
336-334-3091 (Phone)
336-334-4141 (Fax)

Register to save articles to
your library

Register

Paper statistics

Downloads
193
Abstract Views
1,525
rank
154,983
PlumX Metrics