Glossary of Terms
Absolute Annual Job Growth by Month
Metric used by the Bureau of Labor Statistics involving the sum of trailing 12 months of monthly job gain or loss.
A ratio used to help determine a university’s overall ranking. Affordability is determined by applying in-state tuition as a percentage of the home state’s median household income, and out-of-state tuition as a percentage of the national median household income. Universities with a low percentage of tuition-to-income ratio are more affordable.
Annual Change by Month
Also known as “rolling 13 months” which represents a percentage change from the previous 13 months to the current month. Specifically, this statistic might be a point-in-time change in effective rent level from January 2013-January 2014. For example, this figure could be calculated as (January 2014 effective rent/January 2013 effective rent) – 1.
Area (Square Feet)
Livable square footage of a particular apartment unit. Axiometrics typically tracks area using net square feet versus gross square feet. As such, patios, garages or other non-livable square footage are not calculated.
Annual Change by Quarter
The annual point-in-time change in effective rent from quarter to quarter. As an example, this figure can be calculated as (4Q14 effective rent/4Q13 effective rent) -1. Another way to calculate is through the sum of sequential quarterly changes for each quarter within the specific year (i.e., the sum of 1Q13 + 2Q13 + 3Q13 + 4Q13).
Area per Unit
Weighted average of all unit areas associated with a specific property.
Also known as a unit’s “market rent” or “street rent.” Asking rent depicts the property owner’s gross rent, without taking into account concessions or discounts.
Asking Rent per Square Foot (ARPSF)
The average weighted asking rent per square footage for a given property, submarket and market.
Asking Rent per Unit (ARPU)
Similar to the ARPSF, but concerning the weighted average asking rent per unit for a property, submarket and market.
Asking Rent Percent Change
The percentage change in asking rent from a previous time period, such as month, quarter or year.
Determines the class of properties based on the average effective rent per unit of each property. Class A properties are newer properties in excellent locations and typically have higher rents. Class B properties are in above-average to good condition and are well-maintained, but are somewhat older. Class C describes properties that are in average or below-average condition, are older, and require some deferred maintenance.
Asset Grade in Market (AGM)
A specific property's asset class grade based on effective rent, compared to the effective rent of the entire market in which it is located.
Asset Grade in Submarket (AGS)
A specific property's grade (or class) based on effective rent compared to the effective rent of its submarket.
Average Household Income
A metric used by the U.S. Census Bureau, that details the average income per household.
College Age Population Growth Ranking
A metric determining the growth of the 18- to 24-year-old population in a given state. Universities in states with a high college population growth ranking are also ranked high on overall indexes and rankings.
Measures the weighted average dollar amount given in concessions for units in a particular property.
Measures the weighted average percentage given in concessions for units in a particular property.
Competitive Pricing Survey (CPS)
An Axiometrics-generated report containing a subject property within a selected competitive (comp) set that compares rents, occupancies, amenities and other attributes. A CPS can compare over 100 properties, with one being the subject property.
Economic factors and drivers determining a potential response (such as lease-up) to apartment supply in a given market. Factors can include (but aren’t limited to) job growth and increase in population.
The derived rent adjusts for changes in the same store set over time, especially given the addition of brand new or existing properties to Axiometrics’ database. Derived rent helps prevent the potential skew of higher rents (from newer properties) or lower rents (from existing, or older properties). As such, calculations of derived rents involve effective rent information from the current set of properties being tracked, then working backward based on same store growth rates calculated over time. The assumption here is that properties in the Axiometrics database would grow at the same rate as properties being tracked historically.
Double Occupancy Rent
In student housing properties, represents the annual price per bed, based on a standard double occupancy room.
A collection of statistics about economic activity as issued from organizations such as the U.S. Bureau of Labor Statistics and the U.S. Census Bureau. Such indicators can include job creation, construction spending, housing sales and retail trade.
Also known as “net rent,” effective rent is the price at which a particular unit (or set of units) leases after factoring in all concessions and discounts, and is calculated over the lease period.
Effective Rent Percent Change
The percentage change in effective rent from a previous time period, such as month, quarter or year.
Effective Rent per Square Foot
An average weighted effective rent per square footage for a property, submarket and market.
Metrics used by the U.S. Bureau of Labor Statistics to determine the number of jobs added to a local, regional or national economy.
A measurement referring to the total, unduplicated head count for the university's corresponding fall semester.
Enrollment Growth Ranking
A metric measuring the percentage in which total enrollment changes year over year. Universities with high enrollment growth end up with a higher overall index and ranking.
Financial Aid Share of Total Budget
Shows financial aid as a percentage of the university's total operating budget. The financial aid we refer to only includes gift aid, such as fellowships, scholarships and grants. We do not include loans or work studies. If a university's total operating budget isn't published or available, we use total operating expense instead.
A particular style of unit in a property encompassing aspects such as net livable square footage and amenities including garages, patios and storage. Each property might have several different floor plans.
A measurement by the U.S. Census Bureau detailing the number of occupied housing units.
Housing Affordability Index (HAI)
The Housing Affordability Index (computed by Axiometrics) is a measure of whether a family in an MSA earning the median family income can qualify for a mortgage loan on a median-priced, existing single-family home. An HAI value of 100 means that a family with median income has exactly enough income to qualify for a mortgage on a median-priced home. An HAI of more than 100 means housing is more affordable.
The number of units in a development pipeline on which construction has been delivered. This number does not include units that are in the planning phases.
The U.S. Bureau of Labor Statistics’ measurement concerning the number of payroll jobs created every month—and the number-one economic driver in Axiometrics’ forecasts. The job growth figure is expressed as the gross number of jobs created in the American economy during the previous month.
Ratio of number of jobs created to number of multifamily housing permits issued for a particular geographic region, typically by MSA. The ratio is calculated by dividing the trailing 12 months’ sum of permits issued into the trailing 12 months' absolute gain/loss of jobs.
Period of time tracked on a new property, beginning with its opening for first move-ins (FMI) and concluding with stable occupancy (90% and above).
A specific number of floors of an apartment property.
Level of Economic Leasing Concessions
Percentage of the units within a portfolio or market with economic concessions. For example, the level of economic leasing concessions decreased for the fifth quarter in a row, dropping from 50.6% of the units offering concessions in 4Q02 to only 28.9% of the units offering concessions this quarter.
Metropolitan Statistical Area (MSA)
A geographical region set up by the Office of Management and Budget (OMB) for use by federal statistical agencies in collecting, analyzing and publishing statistics. MSAs typically consist of one or more counties, with at least one of those counties having at least one core urban area. MSAs also have counties with social and economic integration with the urban core.
New Supply Ranking
A metric that ranks universities’ share of new supply of beds as a percentage of total enrollment. Higher new supply rankings tend to have a negative impact on a university’s overall index and ranking.
In conventional apartments, occupancy measures how many property units are occupied, expressed as a percentage of total inventory. When used in student housing, occupancy represents the percent of beds/units at a property that are physically occupied. A property at 90% occupancy is generally considered stable. Also see Vacancy.
Housing starts are an economic indicator used by the U.S. Census Bureau reflecting the number of privately owned new houses (known as units) that have received permitting in a given period. These data points are divided into three types: single-family houses; townhouses or small condos; and apartment buildings with five or more units. Axiometrics' pipeline information is most similar to the multifamily or apartment building permitting figure (5+ units), with each apartment unit considered a single permit.
A student housing measurement detailing the percentage of beds at a given property that have been leased for the fall of the following school year.
Privately-Owned Housing Market
In the student housing sector, the privately owned housing market is that which is controlled by private developers, rather than universities. This sector typically contains two types of assets: student properties (properties geared specifically to students attending a university) and student-competitive properties (conventional apartments that are located within three miles of a specific university or college).
Real Estate Investment Trust (REIT)
A type of real estate company modeled after mutual fund companies. REITs are responsible for investing in real estate and generating returns for their clients or shareholders. REITs can be private or publicly traded on the stock market.
Rent/Bed or Effective Rent/Bed
Similar to the idea behind effective rent growth, the effective rent/bed is calculated by subtracting concessions from the asking rent per bed.
Rent per Square Foot (RSF)
A metric obtained by dividing the effective rent per unit on a property by the weighted average for area per unit.
Rental Revenue Impact
A measurement calculated by subtracting the change in vacancy from the effective rental rate growth.
In order for a property to be considered same store, it must have been in the database, stabilized for an annual file 13 months or 5 quarters. For a quarterly file, it must have one prior quarter of data.
Sequential Monthly Change
Monthly change in a statistic (not annualized).
Sequential Quarterly Change
Quarterly change in a statistic (not annualized).
Relative term describing a property’s current state, such as in lease-up, stabilized, in rehab or under construction.
A property that is an existing asset. New properties must hit 90% occupancy to reach stabilization.
Student Housing Properties
Student housing properties are those that are leased by the bed and are targeted toward students attending a particular university or college.
Axiometrics-classified conventional apartments that are within close proximity to a university campus and can house students and non-students.
Submarket Grade (SG)
A grade based on an MSA submarket’s effective rent, compared to the overall MSA’s effective rent.
The amount of product in the market. Conventional apartment supply is designated by number of units, while student housing supply is designated by number of beds.
A student housing metric ranking universities on their share of new supply of beds as a percent of their total enrollment. The higher the percentage of newly supplied beds to enrollment, the higher supply risk it carries.
A statistical analysis, for every property Axiometrics tracks in a specific market, that shows historical rents and occupancy along various points of time.
Trailing 12 Months (TTM)
A measurement calculating the average or sum of the previous 12 months of growth.
A particular apartment unit located on a property. Depending on the design and layout of a property, several units could be associated with each floor plan, and on each level.
A measurement detailing how many units of each specific floor plan are within a property. An understanding of the unit mix allows for calculation of a weighted average per square foot.
University Graduation Rate
A statistic referring to a university’s six-year graduation rate.
University-Owned Housing Market
Refers to the total on-campus residential hall/apartment capacity controlled/reported by the university, and the standard room and board rates associated with these halls/apartments.
Vacancy (or Vacancy Rate)
A metric detailing how many property units are without residents, expressed as a percentage of total inventory. Also see Occupancy.
Value of Economic Leasing Concessions
The dollar amount difference between the asking rent and effective rent, and what percentage of that dollar amount each type of concession represents. For example, if an asking rent is $1,000, and the concession being offered is one-month prorated with a 12-month lease, the effective rent is $917. The dollar difference between the asking rent and the effective rent is $83. Meanwhile, 100% of the value of the economic concession is free rent, prorated.
Value Added Properties
Lower-grade properties acquired by investors with the intent to renovate/upgrade, therefore increasing the value of the property within that given market.
The year during which a property was built and/or any renovations on that property took place. For rehabbed properties, the year built could consist of an average of the original year built and the year during which renovations took place.
Year to Date (YTD)
Percentage change of a statistic from December of a previous year to the current month.