Independence update? (Salem, Dallas, Monmouth: apartments, rentals, hotel)

[PedPower]

Hello. I see it's been a few years since the last thread about Independence. I drove through there 10 years ago and again about two years ago. Now suddenly there are fancy new apartments by the river with the new hotel. Is this changing the rest of the town too? Kind of surprised by the high rents for such a small town.

Also, what about Monmouth? Is there similar "upscaling" happening there? The older threads don't mention much other than WOU, and I haven't been there in years.

I'm in Salem now and pondering a smaller town now that I'm retired. Salem is nice but getting pricey and noisier in the central area where I live. I've considered quieter neighborhoods, but they seem isolated and not too walkable.

Anyway, I'd be interested to hear any current or recent residents' takes on the changes out in Independence. Monmouth too, if there have been any.

[Silverfall]

Monmouth doesn't have the upscaling. Independence has been making a concerted effort to grow and improve the city. Monmouth has chosen to not grow very quickly where Dallas and Independence have been very pro-growth. Independence has been much more focused on businesses as well as housing though.

The high rents have to do with the high cost of building. It is hard to build an apartment for less than $250,000 per door right now. High construction costs mean high rents.

[PedPower]

Originally Posted by Silverfall

The high rents have to do with the high cost of building. It is hard to build an apartment for less than $250,000 per door right now. High construction costs mean high rents.

Thanks, makes sense. How is this affecting existing rentals in Independence and Monmouth? Are the higher rents from the upscaling likely to push up rents in the rest of Independence? An maybe Monmouth too? Or do you think the older buildings (and perhaps the student demographics from WOU?) will keep Monmouth more affordable?

For that matter, I wonder about Salem too. High construction costs would explain why the new buildings in the central area are pricier despite growing supply. I wonder if this will bring up rents in older buildings too, or are the older apts more likely to remain stable because now there's higher supply? Sorry, I know there's no crystal ball but just thinking aloud.

[Silverfall]

Originally Posted by PedPower

Thanks, makes sense. How is this affecting existing rentals in Independence and Monmouth? Are the higher rents from the upscaling likely to push up rents in the rest of Independence? An maybe Monmouth too? Or do you think the older buildings (and perhaps the student demographics from WOU?) will keep Monmouth more affordable?

For that matter, I wonder about Salem too. High construction costs would explain why the new buildings in the central area are pricier despite growing supply. I wonder if this will bring up rents in older buildings too, or are the older apts more likely to remain stable because now there's higher supply? Sorry, I know there's no crystal ball but just thinking aloud.

No, I don't think the upscaling will push up rents in Monmouth or Independence. The housing shortage is what is really driving rents at this time. Independence still has some dumpy neighborhoods which just can't command high rents. Monmouth has less of that and has generally been a more desirable place to live than Independence. Independence is rapidly improving though.

WOU is mostly a commuter school but there are apartments and such around the campus. Their enrollment has been declining over the past decade as well so I'm not sure they are a significant factor in keeping Monmouth affordable.

Salem has a housing shortage and I don't see us catching up any time soon with our ongoing population growth. Are rents going up in older buildings? Yes, but we still have a significant imbalance so supply and demand dictate that with the lack of supply rents won't come down and landlords will raise their rents to compensate.

The other factor is the insane cost of construction. There is a serious labor shortage so contractors are being paid well these days which drives up the housing prices further. Then you have the supply chain shortages also driving up costs. Landlords that do repairs are having to pay more to get the same repairs done so they have to increase rents to compensate.

[PedPower]

Thanks for the further info, Silverfall. It will be interesting to see how the housing shortage plays out. As for rents going down, I don't think I've ever seen that anywhere. Seems like once they rise they keep rising or at best level off. I will either buy eventually or move if I don't like rental prices.