Summary
This report is a detailed analysis of Client X’s single family rental (SFR) portfolio, which consists of approximately 3,500 assets located in a major urban market. The primary objective of the analysis is to understand how various location characteristics influence the sales price of properties. Local Logic conducted a comprehensive examination of numerous location features to identify the key drivers affecting home sale prices. The findings indicate that factors such as the percentage of the population with a post-secondary degree and transit commuting rates significantly impact sales prices. The report also presents a model that enhances the understanding of these drivers, demonstrating a 16 percentage point improvement in explanatory power compared to traditional models that rely solely on property characteristics. Additionally, an interactive Sales Price Exploration tool has been developed to facilitate ongoing analysis and decision-making based on the model's insights. This tool allows the Client to evaluate how location and other factors influence property values in real time.
