One of the nation’s tightest rental markets

[FlyerInHi]

It’s not normal to live in a 400sf studio or have roommates.
That thinking only contributes to rising rents and lower standards of living.

We do have an affordability problem in San Diego. All the new apartments are high end indeed.

[Coronita]

[quote=utcsox]Zillow published monthly rental market overview here: http://files.zillowstatic.com/research/public/rental/ZRI.San%20Diego.395056.pdf

In San Diego region, annual change in rent is 5.1%. Areas that are desirable and closed to the job center are increased faster than the city as a whole.

I was helping one of my coworkers to look for a place. Costa Verde, located in UTC, which is sort of an extension of UCSD dorm was charging ~$1500 for a 2-bedroom unit back in 2005. Here is their latest ad on the craigslist for a 2-bedroom unit:

http://sandiego.craigslist.org/csd/apa/4995738301.html

This is close to ~40% rent increases for the past decade. I highly doubt that the rents for apartment units in Mira Mesa only increase for ~10% for the past decade. If you believe Zillow’s number, the rents in Mira Mesa increase over 6% for the last 12-month![/quote]

I guess it means I’m a lousy landlord, or why my tenants stopped bugging me for every little thing and just started taking care of little things themselves….lol

Funny because even on a 15 year, my monthly mortgage is around $2650ish/month.

[NotCranky]

[quote=FlyerInHi]It’s not normal to live in a 400sf studio or have roommates.
That thinking only contributes to rising rents and lower standards of living.

We do have an affordability problem in San Diego. All the new apartments are high end indeed.[/quote]
Where is my free pony? The rent is too damn high!

[Coronita]

Just went pending… in a few days… I’m guessing multiple offers. Will be interesting to see what it closes at…

https://www.redfin.com/CA/San-Diego/8480-Westmore-Rd-92126/unit-345/home/4576755

Seller is gonna totally score with his/her purchase price. It’s not even summer yet.

[utcsox]

Large apartment complex used to offer huge incentives to lure you to sign a one-year rental agreement with them. You can move from one unit to another in the same complex to take advantage of the low offering. Not anymore. Nowadays, you are going to get huge discounts compared to market price if you renew your lease.

A colleague of mine lives across the street from the Costa Verde called Towers at Costa Verd which is owned by the same ownership. This complex targeted more towards UCSD graduate students and younger professionals. Three years ago, you can scored a 2-bedroom units there for just under $2000. He is paying like ~$2300 a month now. Here is their latest craigslist ad, $2700 a month:

http://sandiego.craigslist.org/csd/apa/4997038358.html

This is by far the lowest price unit I have seen for the past month. Most of the 2-bedroom units in this complex are closed to $3k.

[joec]

Maybe everyone is “right” and the avg is going up because only new units are being built which has a higher rental rate…This skews the numbers a little higher even though some areas or units are not moving up a lot.

I don’t think a lot of the mom and pop landlords are also in these reports since they don’t poll these people who maybe offering the better “deals” for their rentals since they don’t run it like a business with professional full time workers onsite who don’t mind kicking old tenants out to charge market rate since the building owner has to pay them anyways.

Also, some workers want certain amenities say like a parking space, laundry, etc…so those units have a higher premium than older units without these features so those older rental units aren’t up as much since they haven’t been upgraded.

All I know is I see rents are up a lot all over my area so can’t help but think prices won’t drop until this changes.

[Coronita]

[quote=joec]Maybe everyone is “right” and the avg is going up because only new units are being built which has a higher rental rate…This skews the numbers a little higher even though some areas or units are not moving up a lot.

I don’t think a lot of the mom and pop landlords are also in these reports since they don’t poll these people who maybe offering the better “deals” for their rentals since they don’t run it like a business with professional full time workers onsite who don’t mind kicking old tenants out to charge market rate since the building owner has to pay them anyways.

Also, some workers want certain amenities say like a parking space, laundry, etc…so those units have a higher premium than older units without these features so those older rental units aren’t up as much since they haven’t been upgraded.

All I know is I see rents are up a lot all over my area so can’t help but think prices won’t drop until this changes.[/quote]

wrto mom/pop landlord or commercial rentals, at least in MM, I think there is about a $100-150/month difference for the same terms and approximate sqft.

The problem is the supply of mom/pop units are in short supply i think. A lot of the newer rentals are higher end that throw in incentives like first month free or reduced, but then rates are substantially higher afterwards.

I remember that when there were building new rentals off of the end of MM blvd and 15, that many said that would impact the rent prices for all of MM, since there would be much more supply. Those ended up being high(er) end rentals and I don’t think appeal to the same demographics as what mom/pop landlords appeal too.

[fun4vnay2]

I rented in Mira Mesa in 2007 and I can rent the same apartment for 10% more now. One of the hottest apartment complex in MM

[paramount]

I’ve kept rent the same for the last 3 years at my rental property with the same tenants. I was break even when they moved in, 2 years later I am losing $200/month due to tax increases (and the increased escrow).

Now I can’t even recover my losses due to 10% rent increase limitation. I should have kept up with the rental market.

[skerzz]

Your property taxes went up $200/month in two years? How did this happen? The math doesn’t add-up unless you’re renting out a multi-million dollar property, or your initial property tax impound account was calculated / set-up incorrectly (i.e. based on tax liability before the property value was reassessed to new purchase value).

Under either scenario the increase shouldn’t have come as a surprise to you. Also, I thought you could increase the rent by more than 10%, but it would require a 60 day (rather than 30 day) notice to your tenant. I’ve never raised rent by more than 2.5% (I prefer small annual increases), so I’ve never really looked into this until now (quick google search)…

[svelte]

[quote=bewildering]$2000 for a studio?! “Only” $1600 for a studio in a different place?!

In 2005 I rented a 1bdr in PB 6 blocks from the beach for $950. My landlord did not raise my rent for the 5 years I lived there. I wonder what it rents for now?

My clairemont 2/1 sfr rental was $1650 from 2012-14. The landlord rented it out to the next tenants for $1750. He had 30+ people contact him within 60 minutes of the place going on craigslist. A similar rental is on craigslist for $1950.

The rental market is driving house prices. How can there be any reduction in prices when the rental vs. house payment is at parity? All I can see is house prices going up and up.[/quote]

This is what I was saying on here about 2 months ago and not getting many believers in my corner.

When I helped a couple back in Dec/Jan, we found they could *buy* for less && than *rent* in San Marcos! It was a no-brainer.

Rents have been going through the roof…that has to put pressure on home prices.

Spoke with a realtor friend this weekend – he’s been closing one sale every 1 to 2 weeks. Yikes! He says it feels like a seller’s market as he has more buyers, but they can’t find homes to buy. (ie homes they like…)

[spdrun]

In a normal market, it’s cheaper to buy than to rent (not at parity). Tenants are paying for flexibility and maintenance.

So there certainly can be price reductions with rents at parity.

[Reality]

I looked at an apartment in this complex almost exactly 5 years ago and the top rent for a 1 BR was $1535. Now it’s $1635. 6.5% increase over 5 years.

Not buying the hot rental market nonsense.

http://www.canyonviewsd.com/info.php?pnum=7

[fun4vnay2]

Best to consult a realtor when to buy a home and if you want to know if real estate market is hot 🙂

[joec]

Case-Shiller out now:
https://www.spice-indices.com/idpfiles/spice-assets/resources/public/documents/173348_cshomeprice-release-0428.pdf?force_download=true

SF and Denver tops list with 10% and 9.8% gain YoY. San Diego clocked in at a slower 4.7% increase…

[Author]

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