When are inner apartment prices going down?! (Houston, Center: renters, tenants)

[rjj42]

Originally Posted by gwarnecke

Already seeing free 1-2 month deals.

I agree that base rents are d*mn high. Doubt they'll drop significantly until/unless our population actually starts dropping.

Do you know of nay specific complexes offering 1-2 month deals? I remember reading an article a few months back in which the guy who owns Finger Properties was quoted as saying that he'd have to give some deals on some of his properties that are coming on market this year.

[gwarnecke]

I read it somewhere a couple of months back, but I don't know of any specific complexes. In order to get 1 or 2 months free rent, you have to sign a 15-24+ month lease.

[Augiec]

Originally Posted by Spade

Or just dangerous people period? Just single out minorities?

I like how the comment you replied to singled out multi-generational Indian families. Because multi-generational Irish or Italian families never created problems...

Glad to see the post was deleted.

[LocalPlanner]

Since many of the nicer apartments are new, you'll see the owners try to stick to quoted rents to match their pro formas as closely as possible. They'll instead drive occupancy with concessions. Eventually, if occupancies really dip, they'll drop quoted rents a bit. We're not there yet.

[geolvl]

Something like 1000 units going up next door. Is there any chance they could transfer to section 8? Is this a valid concern/worry, or would never happen? And if so, why either way? I don't see these giant complexes renting out.

[LocalPlanner]

Originally Posted by geolvl

Something like 1000 units going up next door. Is there any chance they could transfer to section 8? Is this a valid concern/worry, or would never happen? And if so, why either way? I don't see these giant complexes renting out.

Landlords only choose to go Section 8 if they think they'd have trouble renting the units at the "Fair Market Rent" established for your area by the governing local housing authority and HUD. That rent as calculated includes Class B/C properties, so it's probably lower than what even a discounted new Class A rent would be.

It's more likely that the discounted Class A rents (that is, if they really get discounted - see my comment above) draws the higher-quality tenants out of the Class B/C properties in your area. Then those landlords could be more tempted to accept Section 8, if it meets the aforementioned pricing conditions.

I should also note that many landlords consider Section 8 a tradeoff: more reliable and higher rent vs. more expensive tenants (they are perceived to be harder on the properties, thus requiring more maintenance and operation expenses).

[geolvl]

So, is section 8 either all or nothing scenario. I mean, I think these apts, while new, are like tenements (600 sq ft and no windows). I just think a real Texan, not used to this kind of big city apt, wouldn't rent that kind of apt. So, I think half may be rented while a substantial amt of crappy, yet new, apts sit empty for eternity. I think there will be so many empty, with such enormous amounts of inventory, that they will be losing money no matter what. So, can they mix them up, or only whole buildings? I think Houston just approved the city's future tenements and it's going to be really aweful.

[wstaffor]

Almost every Class A complex in the Houston area has some kind of free month(s) deal going on right now. Feel free to PM me questions about specific complexes or areas, I work as an apartment locator on the side.

[LocalPlanner]

Originally Posted by geolvl

So, is section 8 either all or nothing scenario. I mean, I think these apts, while new, are like tenements (600 sq ft and no windows). I just think a real Texan, not used to this kind of big city apt, wouldn't rent that kind of apt. So, I think half may be rented while a substantial amt of crappy, yet new, apts sit empty for eternity. I think there will be so many empty, with such enormous amounts of inventory, that they will be losing money no matter what. So, can they mix them up, or only whole buildings? I think Houston just approved the city's future tenements and it's going to be really aweful.

Unless a landlord has a "project-based Section 8" property, accepting Section 8 just means that the landlord will take Section 8 voucher holders if they apply to rent at the property. That usually means a mix of Section 8 and non-Section 8 tenants, especially if the quoted rent at the property is close to the HUD-defined "fair market rent" for the area.

[geolvl]

So, the apartments that are going in at the Hardy Yards are partly low income (certain amount of units) and this has been publicized. If an apt is planning on implementing section 8, or planning on accepting the vouchers, how do you find out? How do you prevent it? Can you prevent it? I understand the need for low income housing, however I have a problem with it moving next door while I pay more than my fair share of property taxes. Where may I find the fair section eight rates by area pls? Thanks for the information. I just don't trust the housing/building saturation in Houston and how this may turn out...