The present: Out of downtown

Adapting: The changing face of housing near PSUPart 1 of 3

The series: Alongside the departure of College Housing Northwest from PSU housing, the university is working to expand University Housing to accommodate an increased demand for housing close to Portland State. Over the next three days, the Vanguard will examine the current state of downtown housing, the future of University Housing, and the history and departure of College Housing Northwest at Portland State.

Portland State students are increasingly being forced out of affordable apartments near the university because of luxury condominium conversions and construction.

The city of Portland’s 2005 Housing Census, the most recent compilation, and Portland Development Commission documents show that 792 apartments out of 3,553 have been converted to condominiums or destroyed by condominium construction.

Condominiums, with prices starting at about $160,000, are out of the price range of most students. However, in some cases, real estate sellers say parents are buying condos as investments and homes for their student children.

McKenna Arndt, a senior at PSU, was displaced by new condominium development, after the conversion of the Portland Center Apartments at 222 S.W. Harrison St. Having lived there for seven months, Arndt knew that she would likely be forced out. What she didn’t know was how hard it would be to find another apartment.

“A lot of the apartments were out of the budget we were looking for, just really expensive, and the ones that were mildly in our budget were just so small and run-down. It was rough,” Arndt said.

The area surrounding PSU, from south of Southwest Taylor Street to I-405, has lost 739 rental units that were converted to condominiums since 2001, according to data provided by the Portland Development Commission.

Among those conversions were 525 units at the Portland Center Apartments-now called the Harrison Condominiums. The situation around PSU is typical for the Portland metro area, which The Oregonian reported in late 2005 has seen more than 3,930 households unsettled by condo conversions since 1998.

New construction, such as the Ladd Tower development at 723 S.W. Salmon St. where the Rose Friend Apartments complex once stood, is replacing previously rentable apartments.

The fair market value of a one-bedroom apartment for the Portland metro area is $638, according to the U.S. Department of Housing and Urban Development Office of Policy Development and Research. Arndt was paying about $780 for her one-bedroom apartment at the Portland Center Apartments, before she and her roommate had to leave due to impending conversion.

Once Arndt did find another one-bedroom apartment, she and her roommate were paying $850, a $70 increase over their previous rent. On top of that, after less than two months of living at their new apartment, their rent was increased another $50.

Unable to afford buying a condominium, with prices that start at $160,000, Arndt was forced to look for housing somewhere else.

“We have given up and are trying to move into Southeast. It’s kind of hopeless to find a place downtown,” Arndt said.

Some students, however, do live at the Harrison Condominiums, according to Shelly Smith, a sales associate from the Harrison Condominiums.

Smith said that some parents, especially those of out-of-state or international students, see buying a condominium for their sons or daughters to live in as a good investment. Smith said the Harrison’s customers are mainly older “empty nesters,” with a large percentage of buyers being from out of state.

“We don’t have a lot of students, maybe around five to 10,” Smith said.

One parent, who asked to remain anonymous because he did not want to single his child out as rich, bought a two-bedroom condominium for his son and roommate who will be attending PSU starting in the fall. He said that after looking at housing downtown, both through PSU and otherwise, his family thought it was the best choice to buy a condo at the Harrison. He plans on having his son and roommate still pay some rent, though at a discounted price.

Many students, such as Arndt, find an appeal in living near campus. Between work and school, it is easier for some students to deal with their busy schedules by cutting down on commuting time.

“I really wanted to live on campus, as far as my classes go,” Arndt said.

When searching for apartments, Arndt looked at housing owned by PSU, but found it to be too costly. “We didn’t find a place through the school. I think PSU has pretty expensive housing,” she said.

“Demand for on-campus housing is growing stronger and stronger every year,” said John Eckman, associate director of Auxiliary Services, the department that oversees on-campus housing at PSU.

Eckman said he expects that at least 1,800 students will be living on campus next year and students looking for single-dwelling units, such as studio apartments, will have a harder time. “Right now, we’re looking for the right balance between single-occupancy units and shared spaces,” he said.

There are plans in place to facilitate roommate finding with a web-based system next year.

“It’s a tough call for PSU, whether they want to invest in making it really accessible and easy for students to live on or near campus,” Arndt said about what PSU should do about housing near campus. “I think there are already a lot of challenges facing students and housing doesn’t need to be one of them.”