Rising rents

[Bugs]

Did anyone else see the article in the Union-Trib about rising apartment rents? It seems the San Diego County Apartment Association conducted a poll with 1500 responses and cncluded that apartment rents have risen 10% in the last year. The article also quotes several other sources that dispute that claim, yet the headline gives this poll credence over everyone else’s response.

BTW, I agree that apartment rents IN SOME AREAS have come up a little bit, probably about equal to the CPI. But I see no indication of 10% increases anywhere except maybe the big singles complexes.

To belabor my point, it grills my chops that the headline reads that rents are increasing even though that opinion is in the minority. This is not sound journalism in my book.

[4plexowner]

It’s not journalism, it’s marketing for the San Diego housing industry.

When 40% of the housing market is dependent on 2nd home buyers and investors (who obviously have to rent the extra housing they own) SOMEBODY had better continue saying that rents will go up or this 40% of the market is going to stop buying.

If this 40% thought that rents were going to flatten out OR EVEN DECLINE, they might stop buying and they might even sell their extra housing – and then there would be a glut of housing on the for-sale market …

Oh, we’re already there …

[mycroft]

I quickly glanced at the article this morning, and wasn’t overly impressed. I think it said something about not much construction going on. I pass a large Archstone complex going up in Mission Valley on my way to and from work everyday. Just off Friars Road, there is another complex being built, and already being advertised in the For Rent magazines. Not to mention that at least some of the condo conversions are now accepting tenants again which helps to increase the inventory. My first guess is that the Apartment Association is trying to justify rent increases by having a newspaper story to point at. “See,” they can say. “The Union-Tribune says rents are rising. We’re not ripping you off. We’re charging market rates.”

My second guess is…well, the same as my first guess.

I don’t think the rents are rising 10% in the big singles complexes. I live in one of them and when we renewed our lease last year, it went up less than 3.5%. If it goes up more than that this year, we’ll most likely move. In that size complex, there’s always some kind of deal going on for a month or two free rent. At the current rental amounts , that would pay for the costs and hassle of moving.

[Anonymous]

I read the article this morning and think you are all missing one key point. The methodologies used by the surveys were different. The one’s quoting 3 to 4% increases were for the large complexes (like an Archstone community) while the one quoting 10% surveyed smaller complexes, duplexes and single family rentals. The key difference is that the higher increases are for the premium properties that are in higher demand by those who are looking for alternatives to home ownership rather than the singles complexes for 20 somethings and working class fmailies.

[ybc]

Has anyone looked at Craigslist’ San Diego houses for rent postings recently? I was surprised by the number of high-end houses for rent — those that are above $2,500 or even $3,000. I had some experiences with renting houses and I heard realtors say that finding a good tenant gets difficult once the rent is above $2,500. Anyone has some explanation for this?

[lostkitty]

Yes, just quickly do the math – and you will see that people who make enough income to afford $2500 a month do not want to rent. They want to buy.

I think rents are increasing because mortgages have, and the owners need to try to get as close to their mortgage as possible. If you look closely, you see all kinds of variation in rental prices for homes of similar quality. Again – has to do with what the break-even (or at least get close to breaking even) point is for the owner.

Rents can only go as high as the local population is able/willing to pay.

[powayseller]

Hey, read this!

The online article excluded the table, which shows RENTS ARE FALLING SINCE FALL 2006!!!!

It’s as with the median price: year-over-year is positive, but month-to-month is down, so they say the median is still climbing!

It’s too bad you didn’t see the table.

Rents went up Spring 2005 to Fall 2005, and have fallen back to almost Spring 2005 levels.

My landlord is so desperate to keep me, he’s giving me a 2 year lease and installing a $3700 a/c. There aren’t too many people in San Diego who can afford $2200/month rent and pay it on time. That’s the only conclusion I can reach.

If rents were really going up, he would not lock in a lease! He told me that rents are going up due to condo conversions. He’s a skilled negotiator, very crafty, so I know he threw that out to have me eager to sign the lease. He knows they are flat to down for SFHs, so he wants to lock me in.

[4plexowner]

My realtor has rented several Coronado and Mission Hills view properties over the years. She is typically looking for $3500+/month.

She says that mostly she deals with these type of people:
> horrible credit – unable to buy but can afford the rent
> in the midst of a divorce and don’t want to buy anything
> only in San Diego short term
> need place to live while house is built / remodelled

[Author]

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