New Sub-Div Woodruff SC Upstate Affecting Rental Houses?
I live and invest in a small rural town in the Upstate of South Carolina. The town is experiencing somewhat of a "boom" I guess you could say due to new industries moving into this area. There are a couple of new sub divisions breaking ground here which will result in approximately 200 new homes in the $175K - $225K range. I currently own a couple of rental properties here that rent in the $450 -$600 per month range. I am in the process of purchasing a duplex in this same town that rents in a similar range. My question is this, will these new homes being built negatively affect the rental market that rent in this $450-$650 range? My thoughts are the new homes would not affect rental property in this range, negatively or positive. Mortgage payments for these new homes would start around $900 - $1,000 per month for most people I would think. The reason I ask is that I have started to notice a few local landlords putting some of their rental properties up for sale, actually a lot. Am I missing something? Are they thinking with the influx of new construction that it will affect the rental industry? Any insight or thoughts appreciated.
Thanks
Mike