Rents are going down in UTC

[p-dude]

I’ve been looking for a new place in UTC and noticing rents are going down in few complexes.
Few weeks back they were asking 1800 to 1900
for a 2 bd 2 bath and now I am seeing 1600 with
500 to 700 off first month

I think extra unsold condo inventories finally
putting pressure on rental market. Also I see lots of town homes staying in rental market for while.

Anyone else seeing such a thing in other areas ?

[LookoutBelow]

Saw the same thing over the last 5 months.

[PerryChase]

Thanks, for the UTC rent update.

hummm… let’s see. $1600 to rent 2bd/2bt at UTC or buy a condo conversion at Verano for $360k++ — a no brainer in my view.

[PerryChase]

According to 10 News, rents may stop going up because of lower occupancy.

http://www.10news.com/news/10784095/detail.html

Interesting Stats:
http://www.10news.com/download/2007/0118/10784196.pdf

http://www.10news.com/download/2007/0118/10784162.pdf

————-

I predict rents will go down once all the hidden inventory becomes available. My guess: 10% decline in rents between now and end 2008.

[ucodegen]

Few weeks back they were asking 1800 to 1900
for a 2 bd 2 bath and now I am seeing 1600 with
500 to 700 off first month

Anyone else seeing such a thing in other areas ?

I am seeing a lot of ‘first month off’s, and monthly rental is more ‘negotiable’. I also have noticed that the break lease penalty has risen (attempt to lock in).

[hipmatt]

This isn’t surprising, as so many who can’t afford to sell have turned to renting, only to find out that the rental market is large as well, and prices will be slashed to a degree there as well.

This is the last step for many before walking away from their homes. I would expect the short sales and foreclosures to be in full swing by July!

[SmellsFeeshy]

I’m not sure that rents overall are going down. It seems that they are going down in certain complexes in UTC, mostly because of massive supply and not enough demand. It seems like 90% of the condos I see for rent on Craigslist are in either Verano, Villa Vicenza or The Venetian. I guess most of the owners that bought there were buying them as investments and now they can’t find anyone to rent them either. Personally I hate condo conversions and wouldn’t want to live in any of those places unless it was ridiculously cheap.

[PerryChase]

what about all those apartments off the 805 under constructions? They should open for rental soon. How many are there? 1000?

Perhaps someone who drives by there frequently could call the rental office and update us on those new rentals hitting the market.

[an]

I was just there a week or two ago, the apartments off the 805 under construction. Their price are quite high and the quality of the interior is sub-par. The counter top and such are of quality in the low end apartments but they’re asking for 1800+ for the 2bed/2bath. definitely not worth it when you have much better places in La Jolla and Carmel Valley renting for same price but much fancier interior.

[p-dude]

There are also new student housing build by USCD which
is going to squeeze more juice out of rental market.
I believe there are few hundreds of them with a separate
building for parking garage.

craigslist is full of these new Valentia, Verano, …
adds, here is an example

http://sandiego.craigslist.org/apa/290124459.html

I believe these 2bd room condos at best worth somewhere
between 250K to 280K, which puts loan interest around
rental price. This was price range set it back to 2002/2003
level. I wonder how long those savvy investors have to
bleed until they realize it’s not worth it.

[Author]

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