Space Command no go Huntsville

[Michael Behr]

How bad is it Space command isn’t coming (Huntsville AL) should I wait and see or keep moving forward? I had an offer and they countered I have until 5pm to decide to counter. This will be my first property. Should I counter and let it expire then try again after I see what the market is gonna do?

[Michael S.]

Your initial question asked how much Space Command would affect the market in general - the answer is less than 1% as we already have a severe housing shortage in Huntsville/Madison proper.  

Now, apartments specifically is a completely different question. The fact that too many higher end apartments have been built or are being built is a problem for those owners/syndications only, not for the market in general, regardless of Space Command. Most families here are not going to rent high end small apartments for 1600+ a month when they can get a quality SFH in a good neighborhood and schools for the same money. So I expect to see some syndicators/investors in trouble for overbuilt apartments depending on their financing. On the other hand, I think there is significant demand for MFH at less than 1100/month, so those owners will do well.