CLARION, Pa. (EYT) — Two Clarion area landlords identified some reasons for the number of rental vacancies in the Clarion area, pointing into decreased university enrollment and a new requirement. Some landlords are shifting to more residential housing as opposed to student housing.
(This is the second in a series of articles on rental housing in the Clarion area.)
Brian Acey: 75% students, 25% residential
Brian Acey Rentals probably offers the largest number of student rentals in Clarion outside of the Clarion University Foundation, Inc., and his rentals are at a 75% student rental, 25% residential rental ratio and feels that there is an excess of rental housing in the Clarion area.
“There is an oversupply of housing right now, and I think a lot of it is being created with (the) university’s change in policy in conjunction with the decrease in enrollment,” said Acey. “I have noticed that several people, some of my competitors, are converting to residential housing. I’m not sure where it’s going to end up or where it’s going to go, but if you drive around town, not only are there a lot of places for rent, there’s a house for sale on every block. It’s not only the landlords, but it’s also anyone that wants to sell their house or relocate here. There are a lot of people renting because they see that the market’s not stable.”
The University decision to require freshmen and sophomores to live in official university-related housing has Acey, like many other student rental landlords worried, both from the business end and a concern about declining enrollment.
“That’s one thing I’m very worried about. I’m down in the trenches and talk to students and parents,” said Acey. “The University says they need to do this to attract quality students here, and from what I’m hearing from a lot of students and their parents, it’s just not affordable, and they’re upset about staying on campus housing when there are very viable nice places around them that they can save half or two thirds of what they’re paying.”
“I had a mom who’s daughter was a freshman and a very good student, and she wanted to live off campus for her sophomore year, and they told her ‘no’ because that was their policy. The mom said if they didn’t release her from that, she was transferring to the University of Pittsburgh because she could live at home and go there cheaper than she could at Clarion. She said she would get back to me if she was released from the contract, but I never heard another word from her. It just happens left and right, and I hear it all the time.”
Despite the challenges, Ace’s rentals are filling up, but adjustments have been made.
“What is happening is that traditionally you would get four kids and two in each bedroom, but now you’re getting two students in those apartments,” continued Acey. “I do have kids that are slowly trickling in, and they’re transfer students. It’s still a fairly good market for this business, but it’s just not what it was. Fortunately, I’ve been in business long enough that some properties are paid off or being paid off, and I can take a little bit of the downswing if it doesn’t get too much worse. There are a lot of people struggling. It’s going to be a fairly wide impact.”
Clarion had a pretty strong housing market, and it held its value, according to Acey. As the number of property tenants decrease, income decreases on all of the rentals, and landlords are not going to be able to afford to pay school property taxes and make appeals for reassessment. If that happens, the tax burden is disbursed over the whole community.
Acey also questions the University’s claim of a symbiotic relationship with the community.
“I don’t see it that way,” said Acey. “The campus has become a self-contained Village. Why would they want to walk downtown for things?”
Some landlords have also seen a growing number of families buying houses in town for their children attending Clarion and roommates are added to make it affordable.
Corcetti at 80% residential, 20% students
Local businessman and landlord Ron Corcetti says he has switched many of his rentals to residential, reversing the number of student rentals. He does have some Section 8 rentals, but he “gets really picky with them.” Corcetti does background checks on his clients, in addition to anything done by the Clarion County Housing Authority.
His decision on types of renters has a lot to do with enrollment.
“Right now I’m at about 80% residential and 20% students,” said Corcetti. “Five years ago it was about 90% students and 10% residential. Five years ago the student population of the campus was close to 6700 kids, and that same enrollment today is about 4,200 kids which means there’s a drop in students available for housing of about 2,500 kids.”
Official university enrollment figures do show a tremendous enrollment decline over the last five years. Total enrollment figures included students at Venango College in Oil City, other locations, and on-line students; however, most of the enrollment decline has been at the Clarion campus.
Corcetti said he ran 100% occupancy for 10 years in a row, and with the downturn in enrollment, he is now running about 90 to 85% occupancy. Corcetti said he wasn’t caught off guard about the decision to require student to live two years because he knew people who told him ahead of time.
“I quit building more units two years ago because I don’t have a need for it,” said Corcetti. “I’m more interested right now in keeping the ones I have occupied. If the university were to change and go back to its population growth, then I feel there is a need for more apartments.”
Corcetti, a Clarion University graduate, also has strong feelings about the university’s requirement for freshmen and sophomore to live in official university housing.
“I talk to the students that I do have, and I’ve asked them, ‘What do you think about having to stay on campus two years if you were obligated to do so?'” explained Corcetti. “Most of them will tell me, ‘I wouldn’t come to Clarion University.’ Nobody wants to be herded into a dormitory when there’s no need for it. When you move out of your house, you become an independent person. I can understand the freshman year getting into the university and being on your own, but after that, you’re an adult now. You should be able to make up your own mind.”
Despite the changes, Corcetti thinks the rental market is still good.
Corcetti has more than 100 rental units in the Clarion area. They can be found on Second Avenue, Fifth Avenue, Agway, Frontier Way, and Oakwood Lane in Marianne.
Tomorrow: Clarion County Housing Authority reports on number of Section 8 housing vouchers in Clarion area.
