Boston Apartment Market
Research & Consulting

Apartment Class Ratings

The Northeast US apartment stock is older than that found in the Southern and Western US. As such, national definitions of competitive apartment class which rely on age as one of the primary determinates of competitive class are misleading in a market that has many of its highest rent properties located in "infill" locations with high barriers to new competitive entrants.  

Therefore for the purposes of our apartment market research in the Northeast US, we have chosen to use the following definitions which are somewhat less dependant on strict age strata for apartment competitive classification:

Competitive Apartment Class

Class A: Apartment communities in the most favorable locations with high levels of unit features and amenities (such as washing machines, quality finishes, walk-in closets) and community amenities (such as recreational facilities or a clubhouse). These apartment communities have state of the art systems, exceptional accessibility and a definite market presence. They compete for residents willing to pay rents above average for the area.

Class B: Locations are less favorable than Class A communities. Class B apartment communities are typically older than Class A communities. Property finishes are fair to good for the same area and systems are adequate, but the apartment community does not compete with Class A at the same price.

Class C: Apartment communities that are older construction with varying degrees of deferred maintenance. Class C communities are most often located in areas where family incomes are below the median income for the Metropolitan Area.

For further discussion of apartment class ratings we suggest: "Rating the Quality of Multifamily Housing" Jack Goodman Vice President of Research National Multi Housing Council and Brook Scott Vice President The RREEF Funds, published in Real Estate Finance Vol. 14, No. 2, Summer 1997, pp. 38-47.