I pay $2050 a month for a 2-br condo in far east Mira Mesa. It is overpriced, but is relatively new construction, includes a 2-car garage, patio, and is a gated community with pool, spa, etc. It is super quiet. $150 a month of that rent is “pet” rent because we have two dogs.
When I was out looking at more reasonably-priced 2br condos in MM, they were about $1400-$1500. But the ones that allowed pets were typically small and disgusting. Houses in MM rent for about $1500-$1800/month.
Around UTC I know students/postdocs can afford about $600/month per room, though I was visiting a friend at Costa Verde (or whatever it is called on Nobel/Regents) and there were people in that complex that had FOUR students per room in 2-br places which were something like $1500/month.
Contentrenter, like Josh, I’m curious about the general area you live in as well. It’s extremely unusual to see anything less than $1.75/sq.ft. downtown and some are as high as $2.75/sq.ft. You’re in at under $1.10/sq.ft. – that’s quite a deal.
We rent a small 4-bedroom/2-bath house in Napa for $1400. Its a good deal, but it is very small (one of the bedrooms is little more than a very small “study”) and old. Nothing fancy or recently renovated.
Nice sized back yard though, decent neighboorhood. All the other houses on the street have been fixed up very nicely and many have sold in the last couple of years. One near us was on the market for $560 – didn’t ask if he got his asking price, but it went fast. He said they were surprised it sold so fast with the market being so slow, but he’s done a lot of work on the backyard and in the house.
This house would sell for much less – I’m totally guessing, but think it might go for around $500K, which puts our GRM at about 357.
BTW: it is interesting that the GRMs were in the 120-150 range in the 90s, but I expect this housing bust to cause a nasty economic downturn. What were the GRMs in the (short) early nineties recession in So. Cal.? Better yet, what were the GRMs in the 70s? Also, don’t forget – when markets fall from a great over-priced height, they *always* overshoot to below the long-term trend-line before going back to it. Between overshooting to the downside and the effects of a recession, some in the most over-priced areas may feel lucky if they only get a 50% haircut.
Henderson NV – I rent a very nice 2bed/2.5 bath condo in an upscale guard-gated neighborhood for $1,100. Market rate would be at least $1,400. Current value is about $320K so GRM at market rent would be 230 or so. Similar units last year sold at $370K. I rent not because I’m a genius market timer (just the opposite, unfortunately) but because I can’t afford the payments on a real mortgage, and I’m not willing to take out a voodoo loan.
