Renting College properties in the Willamette Valley used to be like shooting fish in a barrel. The need for housing well exceeded the supply and that was great for landlords. Fast forward a couple years and we find a different story. Fueled by out of state companies and mom and pop builders, the University has never seen such a building boom. Anywhere there was an open piece of land a new lavish apartment building went up. This brought jobs to the area and has been a great boost to the local economy....Until school started.
The new buildings with all their amenities and hefty price tags were ready
and waiting for the rush of students to come snatch them
up....waiting.....waiting.....Unfortunately someone didn't do the simple math.
With an estimated 9000 new beds. (2000 new units with an average of 3 bedrooms)
and lackluster growth in enrollment at the University, builders have created a
glut of properties that has driven prices down nearly 50%. Properties that 3
years ago rented in minutes at $2800+ now sit vacant with a $1595 offering.
What do we do now? The short answer seems to be lower the prices and
wait. If you have the capital jump on an opportunity to buy some great
properties on the cheap as people flee the market. The housing will eventually
even itself out with growth from the college and with prices dropping local
families are moving back into the university area. That being said this will
take some time as there are close to 1000 NEW units already approved for the
next 12 months.