CoStar Insights

Renter-Driven Comps: CoStar Market Analytics Now Uses Apartments.com Search Data to Generate Comp Sets

by John Hogan | Nov 15, 2016
Airbnb

CoStar Market Analytics now makes use of a technology called collaborative filtering and Apartments.com search data to produce comp sets driven by the marketplace. The way it works: comp sets populate based on other like-communities Apartments.com users looked at when also looking at the subject property.

To demonstrate the power of this new technology, take a look at the gold property marker below in San Diego:

Renter Driven Comps 1

If we looked at comparable communities within the neighborhood (Rancho Bernardo), our comp set would include those markers within the red outline:

Renter Driven Comps 2

Likewise, we could use a geographical radius to find our comps: 

Renter Driven Comps 3

But the problem with geographical filters is that they’re somewhat artificial. A community just outside a certain neighborhood could compete with communities inside a neighborhood. Likewise, who’s to say what geographical radius is appropriate? One mile? Three miles?

When we use Apartments.com search data, the comp sets consists of the communities with red markers:

Renter Driven Comps 4

As it turns out, renters looking at the subject community aren’t necessarily looking for nearby communities. The unifying trend for these apartments is easy access to Interstate15.

This new feature is a great tool for landlords and property managers to find competitors they might be unaware of, and ensure they set rents competitively.


 
 

This post may include "forward-looking statements" including, without limitation, statements regarding CoStar's expectations or beliefs, which are based on our current beliefs and various assumptions concerning future events and circumstances that are subject to change.  Actual results and events may ultimately be materially different.  All forward-looking statements are based on information available on the date published, and we assume no obligation to update these statements.  You should not construe this post as investment, tax, accounting or legal advice.