New downtown housing developments offer students more choices and may help keep down rent rates of older buildings, according to District 4 Alderman Mike Verveer.

Verveer said at first glance, new apartment buildings’ high costs may make them seem less student-friendly, but buildings such as Palisades and the Embassy are still attractive to students and fill up quickly. These new buildings take away business from older housing options and may force landlords of these older buildings to keep their rent rates lower to attract students to their space, Verveer said.

“These existing buildings may not be the new kids on the block, but because of new student housing that’s increasing market competition, landlords of older buildings are keeping a lid on their rent,” Verveer said.

He said older buildings on campus have a more difficult time finding tenants since the latest boom in new downtown development.

According to Verveer, buildings such as La Ciel and La Ville are usually full by January but still had vacancies in August this year. Verveer attributes this to all the new development downtown.

“One thing that seems clear, at least anecdotally, is that development close to campus has led to a glut in the market,” Verveer said.

Besides new student-oriented buildings popping up downtown, there is also lots of new development aimed to attract a non-student population.

Keller Real Estate Group’s Bob Keller said his company is involved in the increasingly popular trend of downtown housing development. Keller said they are currently building two new developments, one on the corner of South Bassett and West Main Streets, and one on the 500 block of West Washington Avenue. He said they will be “mixed-use,” with retail on the first floor and studio and one-bedroom apartments on above floors.

Keller said these apartments rent for $725 to $950 and will mostly likely attract young professionals who work in the neighborhood or near Capitol Square.

City Place, on West Main Street, is an upscale apartment building owned by Keller Real Estate Group. Keller said these units rent for $700 to $1250 monthly. Because of the high cost, he said non-students usually rent City Place, but students are welcome to live there.

“It’s not really aimed to students, but we don’t, of course, put up a sign that says ‘no students,'” Keller said.

Verveer and Keller both said they expect the increase in downtown development to continue in the future.