Housing Shortage at NCCU

North Carolina Central University, located just south of Downtown Durham, has been in the process of redeveloping and adding on-campus housing over the past couple of years. However, the process has left the campus with a severe shortage of housing for students. As this article from the Herald Sun states, almost all upper classmen are being forced to live off campus.

While this might not be ideal for the students or the administration, this certainly offers apartment owners in the surrounding neighborhood an opportunity to capture some well qualified tenants. And it doesn't look like the problem is going to be fixed anytime soon. Current building timelines estimate there could be a shortage for another 7 years or more.

Did someone say higher rents? Good news for Landlords?

If you are a landlord, this economic downturn has produced one very positive result; decreased multifamily construction activity. As hard as it may be to find quality renters right now, imagine if new developments were still popping up around us like they were just two years ago. As this latest article from Multifamilybiz.com points out, multifamily construction has been hammered by the credit crunch.
David Crowe, the chief economist with the National Association of Home Builders says, "The vacancy rate for apartments is elevated now, but as the economy recovers and jobs return, the people who've been doubling up with relatives and friends will want a place of there own- and there may not be one."
This may upset developers who want to stay ahead of demand, but current landlords should be cheering this development as a potential source of improvement. Some industry experts with the NAHB expect rental demand to surpass current supply by mid-2011, with increasing shortages continuing through 2014. They believe this could push rents up as much as 10% in the next two years and more than 4% per year through 2015.