Do updated/new apartments affect SFR's in the same area

[Jason James]

I have noticed that apartment rehabs have been more common in some areas of Louisville Ky. Here is a link to an article about the largest apartment complex in Louisville that is being renovated as I type these questions.

LARGE APARTMENT REHAB

The questions:

1. Do renovated/new apartments help or hurt the single family rental rates and occupancy?

2. Do renovated/new apartments increase the value of single family rentals in the area?

3. Would you purchase more properties in an area like this "thinking" that the improvements to the apartments will have a ripple effect to the surrounding area? 

I have a few properties in the area where this large complex is being renovated and I "think" this is a good thing for the area for sure as these apartments are in bad shape, but I am not sure about the questions I have above. This area is a lower income area and again not sure the impact renovated/new apartments would have on single family homes in the area.  

Thoughts?