Whole Real Estate portfolio at Stake...Please Advise!!

[David Zheng]

So many real estate investors have found that student housing is the way to go as have I

However....what happens when a large commercial company decides to building a crap ton of student housing around your area?

Here's the rundown. Currently I operate 4 condos, 3 single families, and a 3 unit around a school. Modest to updated places with usually 2-3 bedrooms per bathroom. All furnished and all utilities included. I charge around 750-825/person right now

This new company is building a 400 bedroom high rise in the same area. they are calling them luxury student apartments. these units range from 985-1500/bedroom but are completely brand new, all utilities included, furnished, gated parking, student shuttles, Gym, etc.

My question is...HOW DO I PREPARE??? Let's say the student population stays the same, meaning more supply and less demand.

1. Will it increase property values all around the area including my rentals?
2. Will I have to significantly drop my rental prices to compete even if I'm priced lower?
3. Should I sell now??

Anyone else go through such a situation and what did you do?

[Sky Mikesell]

David we have a fair bit of experience in the exact scenario you describe. 

we are the lower priced... less appealing... and not new units for rent.   in the town we own this student housing they continue to build more.   one of the challenges with developers who build student housing is their numbers work for them at an 83% occupancy.   this is slightly terrifying.  However as @Charles Morgan said $100 bucks is a lot to a student.  
There will always be a market for a hipster looking to save a few bucks to invest in their extra curricular substance activities :)     If you really believe supply could surpass demand simply reach out to the university. they have the data available as to how much student housing is available in a geographic area around the university.  this will either put you at ease or cause you to lose sleep.   good luck.