With all the attention given to the nation's rising ownership rate, apartments tend to get lost in the shuffle. But the number of units in buildings with at least five apartments also has grown, even as the number of renters had remained practically flat.

To a large extent, apartment growth is a product of the nation's demographics. The number of young adults, who tend to make apartments their first stop out of the nest, has been growing since the late 1990s. In addition, more and more people of all ages are choosing to live alone, and rentals are ideal for one-person households.

But new construction also has been supported by high-income individuals and families, according to new research authored by economist Jack Goodman of Hartrey Advisors and produced by the National Multi-Housing Council, a trade group for apartment owners and developers.

"The number of apartment households with real incomes exceeding $50,000 has been increasing nearly 8 percent annually, well above the rate of growth in the larger, middle-income market," Goodman reports.

Just how big is the upscale apartment market?

The study, which is said to be the first ever statistical analysis of the sector, found that 25 percent of all renter-households earn $40,000 or more a year. And 25 percent pay at least $700 a month in rent.

But only 12 percent of all renters meet both those criteria. And just 3.6 percent pay $1,000 a month or more.

(Interestingly, nearly half of all apartments built during the last decade rented for $700 or more.)

Rather surprisingly, though, "upscalers," as Goodman calls them, are no older on average than other apartment residents. And they're not disproportionately singles and childless couples, either.

While high-end renters are no more homogeneous than high-end home buyers or other renters, for that matter -- they can be classified into two groups those who choose apartment living for the duration, and those for whom their dwellings are temporary. And it's here that residents exhibit their greatest differences, according to the economist.

Generally, half of all upscalers are "transitionals" who have been in their places for a year or less, and 30 percent are "lifestylers" who have been ensconced in their homes for at least four years. Transitionals are more likely to choose newer buildings, but lifestylers are older, more likely to reside in cities, and more often single women.

For more articles by Lew Sichelman, please press here.

Published: July 25, 2001

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When Lew Sichelman first started writing about housing in 1969, he was the youngest real estate writer in the country. Now, 37 years later, he's one of the oldest -- and most decorated. He has been rated the top housing columnist in the country by the National Association of Realtors as well as by his peers in the National Association of Real Estate Editors. Indeed, NAREE has recognized his work on numerous occasions. One year - due to his advancing age, he can't recall which one - he earned top honors in the annual NAREE Journalism Contest in three out of the four major writing categories. It was the first time one writer has won so many NAREE awards in a single year. Known for his ability to make even the most difficult topics understandable, Sichelman also has been honored by the National Association of Home Builders and the Mortgage Bankers Association. He began providing in-depth coverage of and consumer-oriented information about housing and housing finance at the Washington Daily News, where he was real estate editor. He held that same position for nine more years at the Washington Star, which purchased the News in 1972. The Star, a so-called "writer's newspaper" which also had the misfortune of being an evening paper, was put out of its misery in 1981, and Sichelman, who had begun self-syndicating his column in 1978, decided to become a full-time columnist. Today, his column, "The Housing Scene," is distributed by United Media to newspapers throughout the country. He also is on the staff of National Mortgage News, an independent newspaper which is considered the bible of the mortgage business. And he writes for numerous other publications, including MarketWatch.com, where he answers readers questions once a week, Sports Illustrated (don't ask), RealtyTimes.com, BigBuilder and others. Sichelman is married, the father of five and grandfather of eleven.