Housing vacancies cause concern
With the high vacancy rates, property owners are finding the market very competitive.
Emma DeJong
Issue date: 3/3/10 Section: News
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Currently, Brookings is overbuilt. Community Development Director Mike Struck estimated that there are a little more than 4,000 rental units, and he said he has heard that between 6 and 8 percent of them are vacant.
"Supply is greater than the demand right now," he said. "There's been a pretty significant amount of construction in a small period of time."
There are many causes for the community's current vacancies, one of which can be attributed to a change in the eligibility requirements in section eight of a 1974 Housing Act. This act authorized subsidized housing for people with a low to moderate income level. As of June 2007, among many other requirements, any person with any dependence on his or her parents is ineligible for the subsidized housing.
"That's part of the (vacancy) issue," Struck said. "Students didn't have much of an income, but their parents were still claiming them, so they were not eligible to live in these subsidized houses."
In 2007 Community Partners Research, Inc. conducted a housing study, finding that from 2007 to 2009, 22 apartment buildings were constructed, adding 356 units. In addition, there were 31 townhouses and 16 duplexes built, which added another 97 units.
"(The study) showed a demand of about 100 new rental units a year," John Mills, president of Mills Development Corporation, said. "Since that time, there have been 500."
Mills added that his company has vacancies in every property.
"For our newest one, we're running on a 15 percent," he said.
With the increased number of vacancies, rental property companies are looking into new ways of attracting tenants.
"Everyone's being creative…whether it's offering a free month of rent or a free gym membership," Struck said.
SDSU's future plans are also having an effect on the community.
In the spring of 2009 the university approached two consultants about possible expansion in the northwest quadrant of campus. Among other new facilities, the plan includes apartment complexes that would add 300 beds.
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Viewing Comments 1 - 4 of 7
immom
posted 3/04/10 @ 8:08 AM CST
I went to State 30 years ago. My daughter recently graduated and lived off campus. My friends and I lived in a lot of crappy places then and they are still being rented out. (Continued…)
Kari
posted 3/05/10 @ 8:19 AM CST
Wow think about it. I am sorry you were unable to go to college and are bitter about people who have. A lot of tax payers money is spent on things that the tax payer may never use such as Welfare, k-12 education (if the tax payer never has kids) and several other things. (Continued…)
Let's think about it using facts
posted 3/09/10 @ 11:17 AM CST
"Think about it" should do some research. What is the cost to the state for this buildings? Answer: $0.
These are "revenue buildings". They are bonded and paid back with the revenues people pay to live in them. (Continued…)
Vacancies help students
posted 3/18/10 @ 6:33 PM CST
Having vacancies is the best thing that could happen to students who live off-campus in Brookings. As other posters have mentioned, the cost of living in Brookings is higher than that of living in Sioux Falls, which is just over 8 times the size of Brookings (using the underestimated population of Sioux Falls and the over estimation of Brookings). (Continued…)
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