They zig, you zag: Rents up, renters keep renting

[protorio]

Perhaps some of you saw this in the Times:

http://www.nytimes.com/2012/02/25/business/homes-arent-selling-but-its-an-apartment-landlords-market.html?_r=1&hpw

Here’s a quote:
“Many now wonder about a more profound shift among future buyers. Matt Byford, a 24-year-old litigation consultant in Chicago, acknowledges that low interest rates and low prices favor buying. But he says he is renting and in no hurry to buy, because he doesn’t expect much to change soon.”

A few observations;
– single family homes in middle and lower-middle class neighborhoods are likely to see more multi-family renters in 3 and 4 br. houses and more cars in the street, which is perhaps the ugliest form of “density” in previously quiet neighborhoods.
– I don’t expect real estate to change much any time soon – but one thing is certain to change: rents
– Seems like another sign (if you have your stuff together and can compete with investors) to sneak in a house while lots of others are distracted happily paying their rents and playing the Xboxes.
– who the hell would hire a 24-year-old as a consultant for anything!?

[briansd1]

Downpayment is the a problem.

Job security is also a problem. For their jobs, people have to move more than they did before.

No need to buy if you haven’t yet married and don’t need to nest.

Sharing a house with friends it still much cheaper than buying a house buy yourself. It’s could also be more fun. And you’re left with more disposable income for savings and entertainment.

I actually prefer to work with young people. They are flexible in their work habits, and they get the work done. Just give them flexibility because they don’t like a regimented environment where you have to put in your hours, even though the work can be done better.

Old people who are set in their ways and who have family responsibilities are more of a pain to work with.

[paramount]

[quote]single family homes in middle and lower-middle class neighborhoods are likely to see more multi-family renters in 3 and 4 br. houses and more cars in the street, which is perhaps the ugliest form of “density” in previously quiet neighborhoods.[/quote]

This is exactly what I saw happen in my previous community.

When I 1st bought there (early 2003) most houses were owner occupied; by the time I escaped it was probably close to 90% renter occupied. The change really started with the bubble and accelerated through the crash.

I also witnessed a significant increase in crime: drug dealers, pit bulls, much increased police presence and police involved incidents, ghetto birds for starters.

[Author]

Posts