Why rents are going up?

[no_such_reality]

More anecdotal information but single family rentals dont seem to be declining and good ones are very difficult to find in good areas.

If it’s like OC, those too will fall. Vacancy hasn’t caught up with supply. I did another run through open houses last weekend, still seeing 80% sitting empty rates.

As the empties and REOs come back to the rental market, vacancy will rise and rents will sag.

[sdrealtor]

A rental came up in my neighborhood and there were 5 applications the first day! Its going to take alot more supply around here to meet that kind of demand.

[sdrealtor]

A rental came up in my neighborhood and there were 5 applications the first day! Its going to take alot more supply around here to meet that kind of demand.

[donaldduckmoore]

I guess is rent will go up slightly. Although there are more homeowners have to rent their properties instead of selling, they cannot reduce their rent too much away from their mortgage meaning that they cannot really compete with the apartment complex or rental properties with appropriate market rate. If they have to cut the rent significantly, they better off to foreclose the properties than to rent out with excessive bleeding. As foreclosure goes up, these properties are not going to be rented out immediately, and there should not be any cooling effects on rent by foreclosing homes. I predict that the rental market is pretty much stable yet a slight increase.

[donaldduckmoore]

I guess is rent will go up slightly. Although there are more homeowners have to rent their properties instead of selling, they cannot reduce their rent too much away from their mortgage meaning that they cannot really compete with the apartment complex or rental properties with appropriate market rate. If they have to cut the rent significantly, they better off to foreclose the properties than to rent out with excessive bleeding. As foreclosure goes up, these properties are not going to be rented out immediately, and there should not be any cooling effects on rent by foreclosing homes. I predict that the rental market is pretty much stable yet a slight increase.

[Bugs]

I’ve been saying this about apartment rents for a long time on Piggington’s. A year later the U-T finally figures out the same thing. I guess that means I was wrong before but now I’m right.

Houses and apartments are connected in the rental market, if for no other reason than apartments serve as the lesser alternative. House rents wouldn’t be going up right now if there weren’t so many people sitting out the housing market. Of course, “going up” is a relative term. It’s not like they’ve doubled or even gone up 50%. They’ve just slightly exceed the pace set by the wage and population trendlines. Thy may or may not hold – I rather think they won’t hold but I guess I’ll have to wait for a few years before the U-T gives me my opinion.

[Bugs]

I’ve been saying this about apartment rents for a long time on Piggington’s. A year later the U-T finally figures out the same thing. I guess that means I was wrong before but now I’m right.

Houses and apartments are connected in the rental market, if for no other reason than apartments serve as the lesser alternative. House rents wouldn’t be going up right now if there weren’t so many people sitting out the housing market. Of course, “going up” is a relative term. It’s not like they’ve doubled or even gone up 50%. They’ve just slightly exceed the pace set by the wage and population trendlines. Thy may or may not hold – I rather think they won’t hold but I guess I’ll have to wait for a few years before the U-T gives me my opinion.

[startingout]

I can’t speak to San Diego, but if anyone is interested, rents in the Inland Empire have definitely increased. 3 years ago I could have rented nice apartment or condo for under $1000. Now, it is nigh impossible to find one for under $1400. Our rent has increased by at least 10% every year, and it’s not just our property mgmt co. being greedy- all the other apt complexes are comparable.

So in the IE at least, rent is still increasing. 🙁

[startingout]

I can’t speak to San Diego, but if anyone is interested, rents in the Inland Empire have definitely increased. 3 years ago I could have rented nice apartment or condo for under $1000. Now, it is nigh impossible to find one for under $1400. Our rent has increased by at least 10% every year, and it’s not just our property mgmt co. being greedy- all the other apt complexes are comparable.

So in the IE at least, rent is still increasing. 🙁

[no_such_reality]

Startingout, move to the OC. You can find apartments in the nicer areas for $1400 for a 2/2. Why live in the IE when you can live in the OC for the same price.

[no_such_reality]

Startingout, move to the OC. You can find apartments in the nicer areas for $1400 for a 2/2. Why live in the IE when you can live in the OC for the same price.

[sdrebear]

More anecdotal evidence:

Signed a year lease back in September on a single family 2 bedroom house (it’s a very small house, but yes, it’s a house, not a condo) for $1,900/mo in NE Pacific Beach. At the time there was virtually nothing on the market similar and we were VERY lucky to get it. For fun I check Craig’s List to see what is out there. Just today in the $1,800 – $2,200 range in Pacific Beach, there were over 20 comparable properties posted in the first 8 days of June with a large portion of them being single family homes.

One home I saw I know very well and it is for rent at a lower price than when I went to see it last year. It was put up in May and obviously didn’t rent as it’s back up again just yesterday.

My observation has always been that homes vs rentals is ultimately a zero sum game. There will be ebbs and flows to how and when people shift between owned property and rented property, but ultimately there are four main drivers to the rental prices.

1. Total population
2. Overall home supply
3. Number of people under one roof
4. Average area income

With nothing else changing population wise, people going back and forth between rentals and owned properties ultimately does nothing. Unless there are people who have bought up properties and are happy to just keep them empty for some reason to depress the overall supply.

With respect to that, I only see people leaving SD right now. I have a friend at Sony in the marketing dept. She said that the New Jersey office closed and they offered everyone there a job in SD (some high paying marketing jobs). They all QUIT rather than move here!

[sdrebear]

More anecdotal evidence:

Signed a year lease back in September on a single family 2 bedroom house (it’s a very small house, but yes, it’s a house, not a condo) for $1,900/mo in NE Pacific Beach. At the time there was virtually nothing on the market similar and we were VERY lucky to get it. For fun I check Craig’s List to see what is out there. Just today in the $1,800 – $2,200 range in Pacific Beach, there were over 20 comparable properties posted in the first 8 days of June with a large portion of them being single family homes.

One home I saw I know very well and it is for rent at a lower price than when I went to see it last year. It was put up in May and obviously didn’t rent as it’s back up again just yesterday.

My observation has always been that homes vs rentals is ultimately a zero sum game. There will be ebbs and flows to how and when people shift between owned property and rented property, but ultimately there are four main drivers to the rental prices.

1. Total population
2. Overall home supply
3. Number of people under one roof
4. Average area income

With nothing else changing population wise, people going back and forth between rentals and owned properties ultimately does nothing. Unless there are people who have bought up properties and are happy to just keep them empty for some reason to depress the overall supply.

With respect to that, I only see people leaving SD right now. I have a friend at Sony in the marketing dept. She said that the New Jersey office closed and they offered everyone there a job in SD (some high paying marketing jobs). They all QUIT rather than move here!

[startingout]

Startingout, move to the OC. You can find apartments in the nicer areas for $1400 for a 2/2. Why live in the IE when you can live in the OC for the same price.

I would love to, but my hubby’s job is in Perris, and he’s very happy with his job. Good to know that we’d be able to rent there if we wanted to though!

[startingout]

Startingout, move to the OC. You can find apartments in the nicer areas for $1400 for a 2/2. Why live in the IE when you can live in the OC for the same price.

I would love to, but my hubby’s job is in Perris, and he’s very happy with his job. Good to know that we’d be able to rent there if we wanted to though!

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