Asking Prices of Apartments and Condominiums in the First Quarter of 2016

The US Census Bureau, along with the US Department of Commerce (DOC) and the US Department of Housing and Urban Development (HUD), fund and publish the Survey of Market Absorption (SOMA). The SOMA contains data on recently completed apartments and condominiums, including the asking rent and sale prices of these units.

The median asking price of privately financed, unfurnished, nonsubsidized apartments in buildings with five or more units completed in the first quarter of 2016 was $1,426. The median asking price has not changed much in the last year: according to the report, this median asking price is not significantly different from the median asking price in the fourth quarter of 2015 ($1,442), nor from the first quarter of 2015 ($1,414).

The report also contains regional data. In the first quarter of 2016, the median asking price of completed apartments was the highest in the Northeast ($1,839), followed by the West ($1,692), and the South ($1,390). The Midwest had the lowest median asking price of $980 (Figure 1).

Figure 1: Median Asking Rent of Apartments by Region, Completed in Q1 2016 (Not seasonally adjusted)

figure1v4

On the other hand, the median asking price of privately financed, unfurnished, nonsubsidized condominiums in buildings with five or more units has changed significantly in the last year. The median asking price of these condominiums completed in the first quarter of 2016 shot up to the “$700,000 plus” range. Although there isn’t an exact median dollar amount stated in the report, it is still a significant change compared to the median asking price of condominiums completed in the fourth quarter of 2015 ($501,900) and in the first quarter of 2015 ($539,000).

The median asking price of recently completed condominiums differs by region of the country (Figure 2). The median asking price in the Northeast was “$700,000 plus”, followed by $600,900 in the West, $407,900 in the Midwest, and $305,800 in the South in the first quarter of 2016.

Figure 2: Median Sale Price of Condominiums by Region, Completed in Q1 2016 (Not Seasonally Adjusted)

figure2v3

Most of the change in the national median asking price of condominiums in the last year can be attributed to more condominium completions in the Northeast, a relatively more expensive region of the country. In the first quarter of 2015, only 8 percent of total condominiums completed were located in the Northeast region, compared to 50 percent in the first quarter of 2016.



2 replies

  1. A really smart builder would obtain approvals for 1,200 to 1,400 SF condos but rent them rather than sell them. With the condo formed, units could be sold when a lease expires and the market is right without going through the conversion process. It appears that high rental prices are here to stay for the foreseeable future since no one is doing anything to bring the first-time buyers back into the market.

  2. Well there’s always living in a camper van. That will probably cost less.

Leave a Reply

Your email address will not be published. Required fields are marked *