With the economy in a state of flux, almost every industry is feeling the effects of the recession.
Auburn's real estate market is no exception.
Though students will always need places to live, real estate agencies are finding it increasingly hard to entice college students to call their properties home.
Even newly built properties like the New Exchange have had to resort to such measures as decreasing their rent and adding incentives to try and attract more renters.
"We've changed up some of our pricing in buildings where there are lots of vacancies," said Van Northcutt, a manager of Northcutt Realty.
Many of these new buildings were built during a time when students outnumbered places to live, but now the opposite is true.
"Overbuilding is our main problem right now, but I definitely feel like the effects of the economy are coming," said Northcutt. "We're seeing more people reluctant to sign a lease early (in January or February) in case they get tied to a lease and something happens at home."
Real estate agencies aren't the only ones feeling the sting of the economy.
Students are also finding themselves saddled with more financial responsibility when they are unable to find a subleaser.
"I tried for weeks to find a subleaser but was unsuccessful," said Bethany Donaldson, a senior in agriculture communications. "I think lots of people are trying to be thriftier and go home to work for the summer because of the economy."
Often, if a student is unable to find a subleaser, he or she must continue to pay rent on a place in which they are no longer living.
"I went home to work for the summer and put some money back, but I'm still paying rent on my apartment," said Donaldson. "Even after I dropped my rent by $200, I still couldn't get anyone to rent it, and it's a nice place that is really close to campus."
Northcutt also said that an increasing number of students have had to terminate their leases early.
"In the past people would try to get out of a lease due to a transfer, but now it's purely economical," Northcutt said.
Students' struggling to scrape up rent money is also evidenced by the increasing number of people who applied for the Free Application for Federal Student Aid (FAFSA), which is the deciding factor for financial aid and loan awards.
"Currently, we have about 1600 more FAFSAs filed than last year," said Michael Reynolds, executive director of student financial services. "Due to the economy, there seems to be a rise in the number of students needing financial assistance."
Many students are also attempting to hold out for an on-campus residence, which is typically less expensive than renting an apartment.
"A lot of kids are hesitant to sign a contract because they are waiting to hear about the new dorms, which may or may not be finished," said Brooke Pierce, property manager of AU Realty. "For the most part we're still renting very well, but we hear of kids getting pulled out of school by their parents because of the economy."
Northcutt said he echoed those findings at his company.
"We get calls where kids are saying 'I need out of my contract, I can't come back to school because my parents have been laid off'," said Northcutt.
In spite of the uncertain financial climate, real estate companies are remaining unfailingly optimistic.
"We expect to be 100 percent occupied by August," said Pierce.
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