NIC Research & Data
NIC MAP® Market Signals
3Q11 Market Signal: A Shift within Independent Occupancy by Room Type
There have been anecdotes suggesting a trend of late among new independent living residents towards opting for smaller units in an effort to maintain lower monthly rent. The suggestion is that among new residents who elected to move, for example, into a studio, are residents who, prior to the recent recession, would have otherwise opted for a one-bedroom unit. After examining occupancy rates by room type, there is some evidence of this trend across two-bedroom units, but not necessarily in one-bedroom or studio units. The steepest occupancy declines during the recession were seen in two-bedroom units compared to the other room unit types, with a likely reason being the differentials in price points. Conversely, there has not been any clear change in preferences between one-bedrooms and studios, as their occupancy trends have remained essentially parallel since 2006. As of 3Q11, the average monthly rent for two-bedroom independent living units was $3,151, which is significantly higher than studios and one-bedroom units, which were $2,232 and $2,563, respectively.
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