Yes/no and yes/no. As with everything Real Estate there are two, three,.... different sides to a question and especially not a direct, 100%, spot on answer to any questions because the variables are too great.
More questions to think on:
1. Are the rented homes being properly maintained and well cared for by the current tenants?
2. Are the current tenants in a lease purchase or rent-to-own situation?
3. Do you see the neighborhood renter to owner ratio going higher in the future?
Short answer: If the properties are not being properly maintain and the rent-to-own ratio will continue to increase, adding more no caring tenants, this could cause property values to drop.
Long answer: Is there planned expansion of a major employer that will increase the demand for housing in that neighborhood, thereby raising rents and creating a higher value in the neighborhood?
I know this is a lot to think about, but there is no direct answer when it comes to Real Estate. These are some thoughts to kick around when analyzing neighborhoods.
Josh Barnett, Realtor
Metro First Realty