- September 27, 2016
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Digested from “High-Rise v. Garden-Style: Examining the Path to Prosperity”
Property Management Insider (6/16/15) Wegman, David
When comparing apartment community types, the clear winner for higher effective rents and NOI growth is high-rise apartments, Property Management Insider report. In fact, NOI growth in high-rises has far exceeded garden-style apartment communities in the past 15 years. High-rise communities experience more volatility. However, they also attract more renters by choice, which has made them seem almost recession-proof.
However, this doesn’t mean garden-style apartments should be avoided. Garden-style communities enjoy a higher income yield advantage and better risk-adjusted returns by a slight margin.
And apartments across the board offer a significant growth trajectory, continuing to produce favorable risk-adjusted returns, higher dividend payout ratios and a healthy growth of net operating income (NOI) compared with other property types. Among apartment community varieties, high-rises are seeing the best rent growth.
Learn about the perks and benefits of working in residential property management and some of the reasons the industry provides career growth, stability and endless opportunities.