Common do we hear: "Renters are bad!" "All these apartments are going to sink my home value!" This may not be totally true.
Charlotte is seeing a lot of new apartments and re-zoning going up all across the city. According to William Rohe, Director of the Center for Urban and Regional Studies at UNC Chapel Hill, there is no firm research that shows rentals have a poor affect on nearby home values.
Our stance is that it all depends on what type of apartments are going up and some other factors. Low end apartments tend to negatively affect nearby home values. Mid to high end apartments tend to increase value or have a neutral impact. Multi-use apartments (combo of retail, shops, and apartment living) are often great for walkability and urbanization of the area. This tends to increase home value as the nation is seeing a trend toward pedestrian friendly living.
People in Charlotte usually buy within 2 miles of where they rent, so the more (quality) renters that move into an area = more eventual buyers = higher demand for nearby homes.
Many will argue that it's not as much the renter as it is the landlord that determines the quality of the property and affect on the area. How well is said landlord caring for the needed repairs, imposing and enforcing restrictions, qualifying the tenants, etc...?
If a new apartment building is going up near your home, here are some red flags to consider:
- Is there enough parking for the new residents or will they be taking up valuable street space?
- Will the building block any views (i.e. city skyline) from your home?
- Is there more than one building going up? A heavy presence of tenancy may be a negative.
- Will nearby green spaces be compromised with the new complex?
Consider NYC where a large majority of the residents rent, yet the values of the city remain and continue to increase!