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Garden Style Apartment Communities Outperform the Market

April 13, 2017

Because low density, garden style apartments are becoming farther and fewer in between, average rents are rising, and both demand as well as occupancy are high. Existing garden style apartments are usually located in areas where it would not be easily possible for a competitor to develop a similar property due to the required site size necessary to develop a garden apartment. “Entitlements are often more difficult for garden apartments than higher-density projects,” says Ron Witten, founder of Witten Advisors. “Garden apartments may actually face the strongest barriers to entry (at least in desirable suburban locations).” Witten notes that although less of these properties are being built, it is not for lack of demand, rent growth for garden apartments is two and four times that of mid to high rise properties, respectively, and averaging $1,079/month at present.

Garden Style Apartment Communities Outperform the Market