Will new construction apts push other smaller landlords out?

[Spencer C.]

Hello BP community, I now have 3 duplexes around SLC area that are all cash-flowing well. My units are a bit older but in decent shape (I like to remodel when I buy so it forces appreciation). I am a little worried about continuing to purchase older units as new construction units are popping up everywhere. Is this worry rightly justified or am I overthinking this?

[Robert C.]

@Spencer C., Depends on local factors, but you are probably overthinking. Your older units will probably serve a different segment of the renter market vs new construction. Construction costs are high right now, and developers will expect certain returns. Many new large developments are geared towards the luxury end of the market.