Rent prices going berserk?

[Coronita]

$2700+/month for a 3/2.5 condo in CarmelV?
http://sandiego.craigslist.org/nsd/apa/5204723652.html

$1500/month for a 1/1 condo MM?
http://sandiego.craigslist.org/csd/apa/5197818519.html

Is it really that bad out there?

[outtamojo]

$2495 been the going rate for 1450 sq ft 3/2 detached condo in SEH for 2 years now . So 2495 + premium for Carmel Valley location, better complex… doesn’t look too outlandish to me.

[mixxalot]

Rents have not gone up much for apartments since I moved back. If you think San Diego is bad try the Bay Area which is just nuts!

[bearishgurl]

My kid and 3 roommates (all students) have a nice 4/2.5/2 townhome (abt 1650-1750 sf – not sure) with LR FP, DR, huge kitchen, oversized attached garage and private enclosed patio in a very nice (upscale) eastern suburb of LA for $1950 month. Most of it (flooring, mouldings, plantation shutters, tub enclosures & doors, etc) has been upgraded since it was purchased by the latest investor a few years ago. IIRC, it was built in the mid/late ’80’s (no residential RE is very “new” in the vast majority of this area until you pass well over the San Bern County line).

My kid’s 1/4 portion of all monthly expenses is a very reasonable +/- $600 (incl 1/4 utils), depending on amount of heat or A/C used. Their gas and elec are separate bills and they also have wifi. The owner pays water, sewer and trash thru HOA dues and it is a very large, beautifully-landscaped and maintained complex with all amenities, including roving security in golf carts.

I think LA county rents might be comparable to SD rent up to about 12 miles from the (SD) coast but in East LA and beyond rents are much less as these cities are between 26 and 50 miles inland (from the Santa Monica Pier). Almost all are extremely liveable (even “charming”), uncrowded cities with more generous SFR lots (on avg) than in SD. It is clear to me that LA County did not sell out their open space to Big Development in past decades as SD County and its cities did. These wise decisions LA area leaders made in the past contribute greatly to their livability factor today, imho. Sure, LA County’s freeways are crowded but that is primarily due to millions of residents from four adjacent counties using them in their daily commute to work and back. That phenomenon isn’t as pronounced in SD County except for (possible 150K?) Southern RIV County daily commuters and a few straggling daily commuters residing in the OC.

In my mind, $2700 is a RIDICULOUS amount of rent to pay for a 1388 sf 3/2.5 in (congested) CarmelV (SD). Especially if it doesn’t even have a garage or only has a one-car garage! Likewise, the 588 sf condo in a 40 year-old part of MM (the congestion capitol of SD) for $1500 mo (w/carport pkg?) is a ripoff. Uhhh, no … I don’t care if there IS a ramshackle plywood “tool closet” to store stuff in front of each assigned carport space, lol. SD County’s quality of life has gone down the tubes in so many of its areas because City/County leaders have allowed in much too much density in recent decades. In older parts of Chula Vista, the (apt) density isn’t bad (mostly a few older small, scattered one-story “court” apt developments) but it is terribly congested in 91914 and 91915, especially in the multifamily areas. It is so bad on some streets that a motorist has to slow down and pull over a little to let an oncoming vehicle pass, due to too many parked cars on the sides of the (narrow) streets. Why? There aren’t any parking lots for residents, just bare-mininum-width 2-car garages facing the alley (which you can’t park in, except to quickly unload groceries). They also didn’t build any driveways on these (numerous) blocks full of PUDs. It was just really poor planning all around … a comedy of errors the city allowed in. I feel sorry for all the poor slobs who bought into that mess and are now stuck with 1-2 HOAs collecting their monthly dues and MR that is thru the stratosphere.

I don’t know why SD County’s leaders had to ruin everything for the existing residents while other CA counties elected to preserve their quality of life so somehow managed to refrain from letting Big Development run amok calling the shots. Our leaders shot themselves in the foot because now we have hundreds of thousands (million(s)?) more residents since 1987 (debut of MR in SD Co) to provide public services (and water) for, not to mention clogging our streets and highways.

[meadandale]

[quote=mixxalot]Rents have not gone up much for apartments since I moved back. If you think San Diego is bad try the Bay Area which is just nuts![/quote]

Yep, $2400 for a 690 sq ft 1/1 in San Mateo.

[flyer]

Even family who have lived in the Bay Area for years and own rental properties there, are in awe of the rent explosion.

[mixxalot]

That’s why I moved back to San Diego after losing my tech job. It’s cheaper living here than pissing money away on rent and nicer place to live than the overcrowded overpriced Bay Area. Plus people on the whole are more easy going than work money obsessed greedy people in Bay Area.

[utcsox]

or you can lived in a 1100 SQFT apartment in Carmel Valley for bargain basement price of $2300+ a month.

http://sandiego.craigslist.org/csd/apa/5207560411.html

or you can spend almost $2800 to live in a nicer apartment in CV.

http://sandiego.craigslist.org/csd/apa/5207917731.html

so ~$2,700 for a 3 br condo is not so bad IMHO. But if you ask rockingtime and his mysterious apartment unit in Mira Mesa, then the rent has not really gone up by much. I mean what do I know?

[joec]

yeah, I really think rent has gone up a lot in the last 5-7 years. 4S is around 4k/month and as mentioned, the bay area is much worst…I used to pay around 1k/month way way back there on the Peninsula for 1bdrm. It seems as much as people make, if you live in a “newer/fancier” place, you can’t save as much now. And better hope your company goes IPO or you end up with nothing in your mid/late 30s when you will start hitting age discrimination.

This is why at the end of the day, I really think if you have family/kids/generally more stability, buying a home to live in to lock in your housing cost (as well as take advantage of all the tax deductions), is the best way to diversify your assets.

Not for everyone (esp maybe not for singles as this forum shows they view the world in a different way), but for other folks in that lifestyle (wife/kids/etc), it’s one massive thing less on your mind. For anyone who bought here 5-7 years ago in the more desirable areas, I’m pretty sure most can rent it out for more than their mortgage.

[njtosd]

The CV listing is especially bad considering that it is on Mykonos Ln, which is a tiny street that leads to CVMS and the Boys And Gurls Club. The traffic is horrible for an hour or so each morning and afternoon.

[Coronita]

[quote=njtosd]The CV listing is especially bad considering that it is on Mykonos Ln, which is a tiny street that leads to CVMS and the Boys And Gurls Club. The traffic is horrible for an hour or so each morning and afternoon.[/quote]

That townhome complex is pretty nice for a townhome…The traffic is not great, but it’s a convenient location and starting families can easily drop their kids off by walking at CVMS and/or boys/girls club….

I didn’t think these were renting out as much as they were….During the downturn, I did see a few 3/3 going for around $490k i think

So I’m think $400k loan @ 4% is around $1900/month… Add another 6500 for PropertyTax+MR+ins, and that’s an additional $542/month. So $2442, maybe $2500/month…
For CarmelV, near break even or slightly above, not bad given it’s CarmelV. Of course, now these probably sell for around $650k, so it’s not a good idea for them being rentals now…I didn’t think rent would catch up that quickly…

[Coronita]

[quote=outtamojo]$2495 been the going rate for 1450 sq ft 3/2 detached condo in SEH for 2 years now . So 2495 + premium for Carmel Valley location, better complex… doesn’t look too outlandish to me.[/quote]

Ouch, really? $2500 in SEH…My understanding is SEH is in pretty high demand these days too. Wow…

[utcsox]

http://files.zillowstatic.com/research/public/rental/ZRI.San%20Diego.395056.pdf

FYI, this is the latest San Diego rental market report from Zillow. The annual rent increase is still around 5% for the region. This is hardly surprising if you pay attention to the time series data from the BLS. Look at the number of jobs that are created for the past year from July 2014 to July 2015: there are over 48,200 jobs that was added! And the breakdown of the type of jobs that are added, a 7.4% increase in high paying professional, scientific and technical job. 4% increase in health care. I mean what do you really expect to happen when you have a strong job growth and lacks of new housing inventory unless you think the government is really faking the jobs number….

Moreover, look at the labor force chart. The labor force is increasing rapidly again. Draw your on conclusions what you think will happen in the future.

http://data.bls.gov/timeseries/LAUMT064174000000006?data_tool=XGtable

[no_such_reality]

So what happen with the 70,000 people in December 2009? You guys build a Solent green plant?

[mixxalot]

Soylent Green is people!

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