Fort Bliss and Federal Demand: A Simple 5-year Look at How Military Housing Moves and Changes
Fort Bliss is the heartbeat of the local rental market in El Paso. Unlike other places, Fort Bliss is a great driver of real estate economy because it has one of the biggest military bases in the United States. The military does not follow the same trends as the broader economy in Fort Bliss. As long as this place is active, there will be people needing of places to live; moving in and moving out. This rotation keeps the rental demand consistent.
This pattern is expected to stay the same even for the coming next five years or more. While other move out, there will be a fresh wave of service members coming every year because the cycle of military assignments usually runs for 2 to 3 years. Therefore, the stream of renters are consistent because this turnover is not dependent on things like mortgage rates, job markets, or people just wanting to move. To put is simply, it is ordered movement.
In Fort Bliss, renters receive a housing allowance (BAH) so the rent is backed by the federal government. There are risks, but generally speaking, tenants are able to pay, and they can pay on time. This is a big plus for investors. Of course, there will be changes. However, these changes tend to be slow and not dramatic. The military expansion or decline is possible, but it’s often tied to long-term government planning and not on sudden change in market trends. There will be small adjustments in demand over time instead of sharp spikes or crashes. Also, many families prefer living off-base in order to have more freedom and space and other essential things like better schools; keeping nearby neighborhoods in-demand.
Development and infrastructure around the base are also another thing to look for. More housing options could come in as the area grows. However, there is no need to worry in El Paso because even with new supply of rental infrastructures, it’s unlikely that the market will be flooded. In addition, the changes in military priorities in El Paso is also another important factor. Fort Bliss is still an important area for the United States military because it is heavily tied to air defense and training. The housing demand will always be consistent as long as the base stays active and those missions stay relevant.
The point here is consistency. Your investment is not about huge appreciation in a short period of time but rather, it’s about a slow but constant cash flow. The market will not be going to make you rich faster. Instead, you are investing on the stability of your rental business. In Fort Bliss, you will continue to have stable rent and predictable flow of tenants.