By Brian Blair, The Republic
bblair@therepublic.com
When Shantilal Dayama accepted an engineer's job at Cummins Inc., he heard that fi nding an apartment could be a challenge.
The first six local complexes he checked offered no vacancies.
And the next, Briarwood Apartments, put him on a waiting list that sometimes requires two months for a space to open.
But Briarwood got him a one-bedroom unit in 10 days. Dayama is among residents here contributing to the rental revival.
His reasons for renting rather than buying are simple: The India native, in his 20s, is unsure where his work will take him in the near future. And the commitment of home ownership holds no appeal for now.
"I'm just starting my career," said Dayama.
Many Columbus area property managers say business is as strong as it as has been in years. They credit Cummins' new jobs, along with additions at LHP Software and Columbus Regional Hospital. since Indiana already had been among the country's leaders in foreclosures for five years.
Ten years ago, Grayson would find maybe two to four houses at the Bartholomew County Sheriff's sale. These days, as many as 26 homes are on the block.
Yet, even with many of those people finding refuge in rentals, "there still are plenty of empties," according to Grayson.
The national vacancy rate for rentals has dipped from 5.7 percent in the first quarter of 2007 to 4.7 percent in the first quarter of 2008, according to the National Association of Realtors.
"It is affected a lot by job creation and population trends," said the association's Walter Molony.
Running at capacity
Plus, the home mortgage crisis has sent some residents into apartments.
"I've had a couple of people in here recently who said they had to sell their house first (before leasing)," said Amber Silcox with Steinhurst Manor Apartments.
That facility has been running at capacity for about a year. Renters seeking a unit there need about three weeks leeway to land a spot, according to Silcox.
Brad Grayson, president of the Bartholomew County Landlords Association, said his rentals are strong, but with vacancies for those who qualify.
"I think we're all seeing more occupancy and less vacancy," said Grayson, among the more veteran local landlords.
But Grayson said the most recent home mortgage crisis nationally has had little impact on area rentals,
Rising prices
The average rent is expected to rise 5.3 percent in 2008, compared to a 3.1 percent increase in 2007, according to NAR.
U.S. Census Bureau statistics show that the median price for rentals jumped 14 percent from 2003 to 2007.
Columbus' Stonegate Apartments business has been so strong that it was fully booked before it ever even opened. And Stonegate has boosted its rates from a low end of $650 when it opened in June to a new low-end price of $799.
Its most expensive units have increased from $850 at the opening to a current rate of $999. Its next vacancies are in June.
"This," said Stonegate property manager Elizabeth Hult, "is probably the best I've seen things here (in Columbus) in five years."
Stonegate even has set aside six corporate units for workers for the Greensburg Honda plant.
At Briarwood Apartments, business has boomed at capacity for about four years. Assistant Property Manager Amanda Klei mentioned that even new complexes have had no impact on Briarwood, built in the 1980s.
"I think there's a great need for apartment housing here," said Klei. "And I look for things to remain just as strong."