Rochester, MI · Member since 2017 · 9 posts · 1 vote
I am 24 years old and have one property under my belt, and I'm am looking to do another deal. A few of my friends went to Michigan State. I was looking at homes for sale around the MSU campus, and after talking to my dad who is a builder brought up a good question. Is the rental market around MSU campus over saturated? This got me thinking because I don't want to take my hard earned money and find out that it is in fact over saturated.
Real Estate Agent · Lansing, MI · Member since 2016 · 143 posts · 78 votes
6y
Greetings Tim. I am an investor and realtor in the Lansing and surrounding markets and feel I have a pretty good grasp on the East Lansing/MSU rental market being oversaturated. The short answer is no. Assuming enrollment stays steady, there is always a need for student housing. The city is preferring students to be in student housing or apartments designed for students and are trying to reduce the number of rental licenses given for single-family homes. There are still opportunities for rentals, but there are a lot of people with a lot of money willing to invest in a "college town" because they heard on a podcast somewhere it is a great idea.
My advice would be to invest in Lansing, just West of East Lansing, between the Capitol and campus. Neighborhoods like the "East Side Neighborhood" have been appreciating big time. They are also becoming very trendy as students move into older neighborhoods to be near that part of town with edgy bars and modern coffee shops. The walkability in that area is increasing, rental rates are increasing and demand overall. The beauty here is that you are not anchored to one demographic for renters. Getting closer to downtown you could rent to students from LCC, MSU, nurses who work at the hospital or any of the workers who support the infrastructure around the down town area. If either industry fails (or the student debt bubble pops) you'll still have a steady stream of tenants!
Rental Property Investor · Lansing, MI · Member since 2020 · 21 posts · 9 votes
6y
Hello Tim,
That’s a great question. MSU is in East Lansing - technically a different city than Lansing, with separate administration, laws, tax structure, etc. than Lansing city proper. That being said, I only invest in Lansing proper and don’t have any experience in East Lansing.
I think there are people operating very successful rental properties in East Lansing, but it’s unique enough and property taxes are steep enough there, that many landlords and property management companies that’s operate in Lansing don’t operate in East Lansing. When I drive through certain parts of East Lansing, I see “For Rent” signs waving everywhere, so there are a lot of rentals there! However I would not be a good authority on whether there’s a good demand for that many, or if that market is over-saturated.
Hopefully some other BP members will have more knowledge in this regard and can weigh in on your question. Thanks & good luck!
Real Estate Agent · Lansing, MI · Member since 2016 · 143 posts · 78 votes
6y
Greetings Tim. I am an investor and realtor in the Lansing and surrounding markets and feel I have a pretty good grasp on the East Lansing/MSU rental market being oversaturated. The short answer is no. Assuming enrollment stays steady, there is always a need for student housing. The city is preferring students to be in student housing or apartments designed for students and are trying to reduce the number of rental licenses given for single-family homes. There are still opportunities for rentals, but there are a lot of people with a lot of money willing to invest in a "college town" because they heard on a podcast somewhere it is a great idea.
My advice would be to invest in Lansing, just West of East Lansing, between the Capitol and campus. Neighborhoods like the "East Side Neighborhood" have been appreciating big time. They are also becoming very trendy as students move into older neighborhoods to be near that part of town with edgy bars and modern coffee shops. The walkability in that area is increasing, rental rates are increasing and demand overall. The beauty here is that you are not anchored to one demographic for renters. Getting closer to downtown you could rent to students from LCC, MSU, nurses who work at the hospital or any of the workers who support the infrastructure around the down town area. If either industry fails (or the student debt bubble pops) you'll still have a steady stream of tenants!
Property Manager · Lansing, MI · Member since 2015 · 170 posts · 59 votes
6y
@Timothy E Sullivan the short of the long is no the rental market is not saturated in the Lansing area. There is both cash and appreciation plays available in the Lansing area.
The university and the Capital provide large numbers or residents, but also the auto and insurance industries provide a large tenant pool as well. In the end it is a steadily growing market!
Rental Property Investor · Lansing, MI · Member since 2020 · 21 posts · 9 votes
6y
Hi Roni,
As a local investor in the Lansing area, I agree that investors here shouldn’t plan on appreciation. I see properties selling today for similar (sometimes a little more or less) than what they sold for 15-20 years ago.