How does rising rates affect everyone ?

[Kevin Mejia]

With rising prime rates does that affect all lenders? Should new young investors be worried ?

[Daria B.]

@Christopher Phillips

Funny that you mention the 55+ community. Here in Gainesville there were a set of buildings completed for that age group. Something that took some by surprise considering who the target usually is - college students.

As far as other upscale rental living, this city continues to build these larger apartments - I've seen this momentum the past 2 years and it's not declined. Those of us in the SFR or smaller MFR wonder just how they are filling these when the grow here doesn't support it. A lot of developers are not local so they build and leave. The student base alone, although growing doesn't support the housing being built. The party students (as I'm told by several who have lived here for several years and are in the know) and those with wealthy parents flock to the apartments offering all the upscale amenities. Those students aren't new to the area they just move. As far new students, there aren't that many to fill the number of large apartments being built and continue to be built.

The areas that don't outline the school area are rentals targeting non-students and are not seeing rentals being filled. These people are likely trying to buy their own home. I suspect or the rents aren't what they want to pay. There is definitely a change from last year when filling a SFR wasn't difficult to do.