HomeMy WebLinkAboutWRITTEN RESPONSE - OCHA - 22-00142 - University View - 649 S 2nd W - Condo PlatBYU-Idaho Off-Campus Housing Association
byuioffcampushousingassociation@gmail.com
04/20/2022
To the Mayor and Rexburg City Council
We, the owners of Off Campus Housing, fully endorse the removal of University View from
BYUI-approved single student housing. We currently have 4757 empty beds for Spring semester
which begins Friday, April 15th and continues until July 21st. The newer complexes which have a
large share of the market on average are taxed around $20,000 per year. That is
$95,140,000.00 worth of assets sitting empty every year for almost half the year. Our taxes,
utilities, insurance, bank loans, staff costs, management fees, maintenance repairs, etc. all need
to be paid each month regardless of whether or not our beds are filled. After a low performing
Spring semester, we have a 7 week break that historically has a 15% occupancy rate. Together,
Spring and Summer are 5 months of large expenses and insufficient income.
BYUI has been building to and increasing enrollment for--each Fall semester. They have
continually requested and approved additional developments in the past decade without any
restraint. Today, developers and investors have stopped building because the market has
become toxic. A main contributor to our low performing market is that we have a closed
system and can only rent to BYUI single students who are under the age of 26. When there are
only 71.1% students enrolled, there are no other options to fill our beds. The beds must sit
empty for 5 months! Because the market has been overbuilt since 2018, many businesses have
been struggling and Covid-19 consequences have only increased their financial strain. There
are currently 18 single-student housing complexes for sale, but they are not selling because
their CAP rates are too low, financing is difficult to obtain (approved complexes are seen as high
risk), and taxes are too high.
If owners are unable to sell their complexes and BYUI does not have sufficient students to fill
vacant beds, owners need to find other options. Currently, there is a huge demand for
additional housing in Madison County as our growth continues to surge. In March of 2019 the
estimated median house or condo value was $254,479. Now, as of February 2022, the median
home cost in Rexburg is $380,000. The average price to build a home ranges from $110-$220
per square foot. Supplies are limited, construction companies are overbooked, and there are
few building parcels available. Even if our local families could afford to buy a $380k house,
there is an insufficient supply of available houses for sale.
One solution to the lack of affordable housing units combined with underperforming student
housing complexes is to convert several single-housing complexes to condos. Changing these
apartment units from student housing to condos is a unique way to get individual units out of
the housing market, into the community, and relieve the parking challenges by having less
density per unit. Condos allow families and investors to purchase their own appreciating asset
in the heart of Rexburg. Brigham’s Mill and University View are two complexes taking this route
BYU-Idaho Off-Campus Housing Association
byuioffcampushousingassociation@gmail.com
and represent 1080 beds. Based on current forecasts, the approved market could tolerate an
additional 1200 beds converting to condos for a more balanced market. Without a surplus, BYUI
would begin to assign incoming students to a Winter/Spring track instead of mainly just
Fall/Winter and this would help equalize the entire year. The market would become healthier
with rents stabilizing instead of madly swinging as a reaction to ever changing occupancy
numbers. There would be housing for both the community and for single students. Changing
use from dormitory style housing to multi unit housing condos is a change to less density and
requires less parking. By changing these complexes to condos, beds that previously would have
sat empty for 5 months of the year can now be filled with people who need housing.
Please approve these owners’ requests to convert their student complexes to condos.
Best Regards,
Rachel Whoolery
Off Campus Housing Association President
208-709-7076