Hi Philly Investors! What are your thoughts on investing in the Temple University area in the current situation? Right now it seems there will be a hybrid of on-line and live classes, but it could change.
Hey @Liliya Patton . Great question. On this front I like to think more long term. Is there more opportunity for immediate vacancy due to online classes? Absolutely. Do students still need a place to live near campus? For the most part yes. Is this pandemic going to completely alter the way in which Universities educate? I highly doubt it. As a recent college grad I can tell you that much of the learning experience still comes from personal relationships with professors and fellow students. Once things start to return to normal, students will return to in person classes and will still need a place to live near campus regardless.
From what I have seen from my own investors, the Temple area is still a highly desirable part of the city that keeps appreciating. We sell rehab properties in that area very quickly as the demand is likely to remain in vicinity of the school.
@Liliya Patton I think Temple is one of the more difficult micro-markets in Philly right now. There is a two-way squeeze from the smaller student population in the area due to COVID and the abundance of new high-rise buildings in the area aggressively trying to fill vacancies.
Go on Zillow and put in a couple filters (3BR/2BA) and search for all rentals in Philly. You can visually see all of the available units in the greater Temple area. Vacancy is a problem right now.
We rent units all over Philadelphia and I really think Temple is one of the more difficult neighborhoods currently. Will things lighten up in a year or two? Your guess is as good as mine.
@Liliya Patton @Kevin M. is spot on. Student rental demand is down for the Fall 2020 and Spring 2021. Also, violent crimes are trending up in many sections of Philly. I have a few rentals in this area and I'm watching closely. Not sure how this will play out. Curious to hear if any other Philly investors have any concerns.
@Alex Uman @Kevin M. @Joseph ODonovan thank you for sharing your thoughts on this! Very helpful! I agree that
this area is not desirable right now. However, it probable increases the chances to find a good deal... Anyway, where in Philly would you invest right now?
@Liliya Patton South Philly is hot right now! Everything we've gotten there from full guts to cleaner projects has moved very quickly in the last few weeks. I would invest there or in other similarly appreciating areas around the city.
I think Temple University area is a pretty good place for rental overall as it has different types of renters. It doesn't only have students but also nurses, doctors, educators...If your strategy is buy and hold, you're looking for a long term investment and as of right now, I think there are good signs about having vaccines soon. Therefore, we can hope for a better and easier rental market in everywhere including the Temple area.
@Victoria Pham thank you for your response! Great point about different types of renters. And, yes, hopefully there will be vaccine soon - that should change things again.