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Updated: 7:10 PM Jun 23, 2010
Harrisonburg Realtor Says New Housing Could be Necessary in Future
Harrisonburg, Va. As the Harrisonburg City Council gives the go ahead to build a student housing complex, many wonder whether it is necessary.
Posted: 12:33 PM Jun 23, 2010Reporter: Ed Drantch Email Address: edrantch@whsv.com |
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As the Harrisonburg City Council gives the go ahead to build a student housing complex, many wonder whether it is necessary.
According to one local Realtor, more buildings aren't essential right now.
In the future, as more students are accepted at James Madison University, more housing will be needed.
Paul Riner from Riner Rentals says, with so many towers being built and so many deals, there's more competition in the area.
He says many of those bigger buildings are still vacant, and will remain vacant for some time. However, he believes, these rental buildings are thinking long term.
"It may be that in five to ten years, enrollment will be at the point where it can sustain the amount of room that they're building. As of right now there's not enough enrollment in the area to fill the student beds that they have built," says Riner.
Riner says many of his rental properties aren't affected by this competition, since he's not involved in the bigger housing complexes. He says there are more beds than students to fill them at this point.
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Latest Comments
Given the obvious oversupply in the market (read Riner's professional opinion that their are more beds than students, or just drive around...), common economic sense would expect rents, or revenue, to drop, thus overall net income, the most common point for valuation, to also drop. SO if property values decline, then assessment values will drop (also appeals for decreased assessments will increase) and the overall tax base will drop at a terrible time for the city to lose tax dollars. Hmmm, deleveraging much? It's understandable that in frothier times, the city herd permitted or planned for student growth, but the question remains: did they save/reserve tax revenue for the downcycle? Should they permit more? Previous "by right" is what it is, but smart private financiers will not step in until the slack is removed. Gird your loins for continued economic stagnation. PS - This issue is not just related to student housing. See the residential oversupply for both apts & houses.
Yes, a realtor/landlord would say more is needed. As a citizen, look around at all that is here and what has been approved to be built! What will this look like in 10 years?? 20 years?? Do you want this to be our future?? Mr. Riner may want to rethink his "growth" and look at his property 20 years from now. And the growth is not just student housing!!!
When is enougn? Every summer water becomes an issue for the city. You need to make sure resources can handle the housing. I wish the city council would think about that!!!
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