According to the study done by Tikijian Associates, a company of multihousing investment advisers in Indianapolis, Bloomington’s ?average rent per unit is $893.
The second-highest city, Columbus, Ind., has an average rent per unit at $821, while Lafayette/West Lafayette comes in at third at $789.
“You know our theory on this — which I think is correct — is based upon the number of student properties that are in Bloomington based on the percentage of the overall apartment base,” said Duke Hardy, senior managing ?director at Tikijian Associates.
Students are more willing to pay for amenities, while more apartment properties with high rents are being built to meet the demand, ?Hardy said.
“I mean 20 years ago students were renting generally apartments in regular apartment communities or they were renting homes,” Hardy said “And pricing seemed to be a significant part of ?the equation.”
Hardy said students from other parts of the country and the world have increased demand for luxury-style apartments marketed toward students, and developers are building new properties to meet that demand, thus increasing the average rent.Hardy said high rent’s larger effect on Bloomington’s nonstudent residents is only slight because students and nonstudents are generally segregated away from one another. He said the farther away from campus, the less impact it ?will have.
“The rents are so high because of the student population,” said Janice Price, public housing property manager with the Bloomington Housing Authority. “Obviously landlords can get higher rent out of students ... so that obviously causes people that need affordable housing not to be able to obtain it, so their only option is to apply for ?government assistance.”
Price said her experience has shown student housing has increased rents overall.
“If you go around to the surrounding counties, out of Monroe and out of Bloomington, you’re going to see lower rents,” Price said. “So what does that tell you? I mean why would rents here be so much higher than the same size town you know 30 ?miles away.”
