Rental housing in Salem is in short supply, according to a recent article in U.S. News & World Report. The article says that as of March 2017, plans were underway to develop more apartments within the city limits.
A 2016 report by the U.S. Department of Housing and Urban Development provides insight. The Comprehensive Housing Market Analysis report for Salem says the foreclosure crisis resulting from Great Recession shifted consumer preferences toward renting, and the rate of apartment construction and conversion of single-family homes to rentals did not keep pace with demand. The report forecast demand for 2,025 rental units over a three-year period. In 2016, some 520 units were under construction.
As of February 2017, seven properties were under construction, and six more were in planning, according to the Statesman Journal, Salem’s major daily newspaper. The Statesman Journal said that combined, these new construction projects would bring 1,372 more homes to the area.
Statistics indicating the number of houses converted to rental units were not provided in either report, but a May 2017 City of Salem Staff Report indicates that an increasing number of property owners are seeking to rent out houses or rooms in houses on a short-term basis.
B-class and C-class properties are especially suited for rental, because working-class tenants can afford them. B-class properties are typically 15 years to 30 years old. B-class properties are in neighborhoods that have decent restaurants and schools. C-class properties were built more than 30 years ago and typically attract people who receive government subsidies and work in low-wage jobs.