Elizabeth Keen. Rental Properties Contribute to Starkville Housing Crisis

Since the end of the COVID-19 pandemic, rent prices across the United States have gone up 30 percent.

Let that sink in.

Sure, increased inflation over the last few years has been a major reason why residents are now paying a few extra hundred dollars each month for apartments and homes that were once considered affordable, but there is much more to the story. What might arguably be the main factor behind skyrocketing prices? Short-term vacation rentals. Hotels were once the only place that travelers could stop for overnight stays, but over the past decade, there has been a rise in groups such as Airbnb and VRBO. These companies allow people to rent out individual rooms, condos and entire homes for those who wish to avoid staying in crowded hotels while on vacation. Using these rentals has its perks — privacy, space and fewer restrictions, to name a few — but they have served as one of the biggest downfalls of the housing market. ¹

According to NASDAQ ,the purchase of vacation homes went up by 44 percent from 2019 to 2020. This took houses off the market for those who truly needed them and allowed the wealthy individuals and groups who owned the homes to rent them out for a large profit. With a decrease in available housing and growing demand by everyday people in need of a place to live, real estate groups jumped on the chance to increase rent on available properties. 2

Starkville, Mississippi, is no stranger to these surging prices. With its large student population and a plethora of out-of-town people who travel in for the local university’s major sporting events, finding affordable and sufficient housing each year is difficult. According to Airbnb, there are currently 396 available rental properties located in the city. The average rate for these properties is between 186 dollars per night and 206 dollars per night. 118 of these rentals are apartments or condominiums, and 232 are entire homes, cabins or townhouses.

Neighborhoods along Montgomery Street appear to have the most available rentals and gameday houses. North Montgomery boasts lots of quaint homes on quiet streets, while South Montgomery is home to sprawling complexes and gated neighborhoods. Academy Village and The Condominiums at Carpenter Place are just a few of the common gameday condominiums located within just a few miles of each other. Annabella, a small subdivision featuring lavish luxury condos, borders dilapidated properties located along Vine Street. The only separation between them? A fence: a physical representation of the glaring issues of the housing market.

It is no surprise that in a college town, students are constantly on the hunt for apartments or houses to rent for the few years that they will be in school. Rising rent prices are making this search for affordable housing much more difficult, and the housing options that are somewhat more affordable often have problems that make them almost unlivable. ³

Senior Mississippi State student Emily Reed has lived at The Hangout for the past few years. The massive apartment complex prides itself on serving students with a convenient location that borders the MSU campus, furnished living spaces and rent that is among the most affordable in the area. Despite these boasts, Reed said there are a few issues. ⁴

“It’s always dirty in the communal areas,” Reed said. “Our front door and back door do not work half the time, which means I’m locked out of my apartment continuously.”

The list does not end there.

“My bathroom door in my personal bedroom does not close, nor has it ever closed,” Reed said. “My furniture has all broken within a month of use. We had silverfish in our apartments and mold growing inside of our cabinets and were told that it was fine.”

Not only are these annoying inconveniences, but they are most certainly safety hazards. Despite this, Reed has renewed her lease at The Hangout each year because finding an affordable place to stay elsewhere has proven to be too difficult.

“The rent here is pretty average compared to other places,” Reed said. “It’s still expensive, but other places are so ridiculously priced that it makes it seem nice.”

Even in student housing, the social work major has felt the effects of rising rent prices. Reed’s rent has increased by 300 dollars over the past two years, but she feels as if there is nothing that she can do about it.

“We can’t be homeless, we’ve got no choice but to pay it,” Reed said.

When asked about the fact that many people — even some of her friends’ families — own short-term rentals and gameday houses in the city, Reed could not suppress her frustration.

“I think that it’s really not fair to students — who pay so much money to go to school here — that we get stuck with the lesser apartment buildings than people who just travel in for games,” Reed said.

Rent prices do not seem to be slowing down, and the divide between luxury housing and affordable housing in Starkville and across the United States is massive. Even now, construction on a new set of luxury condominiums is underway near Russell Street, which will undoubtedly contribute more to Starkville’s housing crisis. As school returns to session in the fall and football season rolls around, demand will continue to increase with limited supply. The cycle will continue year in and year out.

There is no end in sight.

Email me at efk34@msstate.edu with any questions