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University Growth Will Impact The Fort Collins CO Housing Market

By
Real Estate Broker/Owner with New Paradigm Partners LLC EB #1326335

Planned growth at Colorado State University will most likely lead to increased multi-family development, increasing rents, and pressure on residential neighborhoods in Fort Collins CO over the next ten years, according to a recent story in the Northern Colorado Business Report.

Full HouseLast fall, CSU's enrollment was approximately 27,500 students. That number is expected to increase to 35,000 over the next 10 years, and the University's housing plans will only accommodate a small percentage of that growth.

With vacancy rates at extremely low levels already, and rents showing a strong upward trend, the likelihood of additional private multi-family development is high, as is the expansion of student housing opportunities to areas further from the university. In the past, such development has been a source of contention from affected neighborhoods, and this is unlikely to change.

Further, the market for single family home purchases for students may become much more active as rents continue to increase, and this will affect a wider area than in the past. Once a strong factor in local real estate sales, this market became dormant after the City of Fort Collins passed an occupancy ordinance preventing more than three unrelated people from living together. While this ordinance had an overall beneficial effect, lessening adverse neighborhood impacts from student housing, it also made a big difference in the investment scenario behind such purchases - with only two additional rents coming in, and a general slowdown in the market, it has been a less attractive option financially. But with rising rents, it may very well make a comeback.

If you are the parent of a CSU student and would like assistance in exploring the options available for this particular chunk of your child's college expenses, please contact Mary and me. We've been working with student housing alternatives for many years now, and can help you understand and choose the right option.

Posted by
Mary & Dick

Mary & Dick Greenberg
New Paradigm Partners LLC
2601 S. Lemay Ave. #41
Fort Collins, CO 80525
970-689-4663
www.maryanddick.com

 

Data Source: IRES MLS

Comments(9)

Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

Good Morning Dick, Here in NH we are loaded with large colleges and universities and you have outlined a great choice many parents have taken advantage of here in Southern NH. Great blog... Have a great Friday 

Mar 30, 2012 12:25 AM
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hi Dick,  With everything that is going on at CSU, it will expand your business big time, be ready!

Mar 30, 2012 01:40 AM
John McCormack, CRS
Albuquerque Homes Realty - Albuquerque, NM
Honesty, Integrity, Results, Experienced. HIRE Me!

Morning Dick,  Sounds like a two sided coin for sure.  That is an interesting ordinance established by the city for only 3 non related occupant. It makes me wonder if such an ordinance exists here. I hope the impact is positive for the big picture and for investors utilizing the services of Dick and Mark Greenberg. 

Mar 30, 2012 01:54 AM
Jerry Newman
Brown Realty, 210-789-4216, - San Antonio, TX
Texas REALTOR, San Antonio Military Relocation

HI Dick, With the expansion and growth of Colorado State University, I am sure there will be a demand for more multi-family units, and even some single family units. Dick and Mary Greenberg are the agents to contact in the Fort Collins area for all your Real Estate Needs.

Mar 30, 2012 02:29 AM
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Dick,

That bodes well for you.  Some of our clients who work in university towns, have parents of college students buying condos and other housing for them as an investment.  A

Mar 30, 2012 05:04 AM
Chris Ann Cleland
Long and Foster Real Estate - Gainesville, VA
Associate Broker, Bristow, VA

I bet parents buying investment properties that their kids can live in is pretty common in your market.

Mar 30, 2012 05:20 AM
Debb Janes
Nature As Neighbors - Camas, WA
Put My Love of Nature At Work for You

Sounds like a good option with kids attending school for four years. I know first hand the housing difficulties for students around Fort Collins - and with increasing enrollment, buying may represent the best and only solution.

Mar 30, 2012 06:57 AM
Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

Dick --- sounds like very positive news overall with CSU expanding enrollment but I wonder about the legality of Fort Collins rules of no more than three unrelated persons living in one household -- how is it enforced and by whom?  

Mar 30, 2012 07:26 AM
Suzanne McLaughlin
Sabinske & Associates, Inc. (Albertville, St. Michael) - Saint Michael, MN
Sabinske & Associates, Realtor

I hope that this will mean a bigger chunk of the pie for you and Mary!  And, it sounds very promising.

Apr 04, 2012 05:54 AM