Rental Property Investor · Berlin, NJ · Member since 2016 · 83 posts · 23 votes
Hi All, I have been researching a few areas that I believe will be good for Single Family Rentals (specifically in South Jersey). I have been seeing a few areas that have (or will have) large "luxury" apartment complexes going up. They seem to be mostly 1 and 2 bedroom units. I think these complexes should increase the value and revitalize certain areas, but I am curious the effect it would have on Single Family Home Rentals. Would these type of complexes make it more difficult to find tenants for Single Family Home rentals in the same area? Or would it benefit it? Would love to hear everyones thoughts! Thank you in advance!
Investor · Nashville, TN · Member since 2016 · 17 posts · 1 vote
8y
Depends on the location of the SFH...we have SFHs in a more urban area. The tenants are young professionals doing house share. We are watching closely on these lux apartment buildings in downtown. Expecting some impact...
Specialist · Riverside, CA · Member since 2015 · 6k+ posts · 3k+ votes
8y
They probably will have little effect, most people who rent an SFR either have kids, a dog or both, which can be difficult in an apartment. If you stick to SFR rentals with 3+ bedrooms it will probably have even less of an impact.
Real Estate Agent · Atlanta · Member since 2018 · 137 posts · 69 votes
8y
The privacy factor you get from a SFH is something even the nicest apartment will never be able to compete with, IMO. Having a substantially greater housing supply would in theory lower market rents in the area, but there will still always be folks who'd never consider an apartment over a SFH. I personally wouldn't sweat it too much.
Attorney · NJ · Member since 2018 · 120 posts · 58 votes
8y
@Daniel Kent I would not think that it will make it harder to rent a SFH or lower the rent you could charge. I could see it as a net positive if the apartment complex brings with it new restaurants and the like. It would make the area more attractive across the board.
Investor · Nashville, TN · Member since 2016 · 17 posts · 1 vote
8y
Depends on the location of the SFH...we have SFHs in a more urban area. The tenants are young professionals doing house share. We are watching closely on these lux apartment buildings in downtown. Expecting some impact...
Investor · Greenville, SC · Member since 2016 · 5k+ posts · 13k+ votes
8y
It will be location specific. Downtown locations with excess inventory can be problematic. Hard to compete with rent concessions, brand new units, pools, playgrounds, social aspects, restaurants, retail, etc.