Will rent prices drop too??

[kev374]

Rents have been falling here in South OC because inventory is rising and there is tremendous competition. I am on a lease paying $1350/mo. and the same unit now is renting for $1250 under specials because there is so much choice now.

When supply increases, the prices fall. We have had staggering job losses recently because of the RE implosion (OC Register has a layoff list that is a few pages long) and a recession is looming with more job losses ahead. All this means is that the capacity to pay will be diminished which in turn directly affects rents, especially in a market where supply is increasing at the same time.

[CMcG]

I own. But every day, I drive past the 30-unit apt. building where I lived for 11 years until a year ago, and I have been stunned to see that for the first time, there is no “For Rent” sign in front. There was always at least one and sometimes five or six apartments for rent at all times. These units were advertised as luxury and as far as I was concerned, they were. Excellent maintenance, underground parking, really thick walls. I know you guys are mainly talking about houses, but I thought I’d throw in this observation anyway. I was paying $1,275 when I left, mainly because I lived there so long and my unit was not upgraded, but I think these units are now $1,400 plus if you can get one.

[CMcG]

I own. But every day, I drive past the 30-unit apt. building where I lived for 11 years until a year ago, and I have been stunned to see that for the first time, there is no “For Rent” sign in front. There was always at least one and sometimes five or six apartments for rent at all times. These units were advertised as luxury and as far as I was concerned, they were. Excellent maintenance, underground parking, really thick walls. I know you guys are mainly talking about houses, but I thought I’d throw in this observation anyway. I was paying $1,275 when I left, mainly because I lived there so long and my unit was not upgraded, but I think these units are now $1,400 plus if you can get one.

[CMcG]

I own. But every day, I drive past the 30-unit apt. building where I lived for 11 years until a year ago, and I have been stunned to see that for the first time, there is no “For Rent” sign in front. There was always at least one and sometimes five or six apartments for rent at all times. These units were advertised as luxury and as far as I was concerned, they were. Excellent maintenance, underground parking, really thick walls. I know you guys are mainly talking about houses, but I thought I’d throw in this observation anyway. I was paying $1,275 when I left, mainly because I lived there so long and my unit was not upgraded, but I think these units are now $1,400 plus if you can get one.

[CMcG]

I own. But every day, I drive past the 30-unit apt. building where I lived for 11 years until a year ago, and I have been stunned to see that for the first time, there is no “For Rent” sign in front. There was always at least one and sometimes five or six apartments for rent at all times. These units were advertised as luxury and as far as I was concerned, they were. Excellent maintenance, underground parking, really thick walls. I know you guys are mainly talking about houses, but I thought I’d throw in this observation anyway. I was paying $1,275 when I left, mainly because I lived there so long and my unit was not upgraded, but I think these units are now $1,400 plus if you can get one.

[CMcG]

I own. But every day, I drive past the 30-unit apt. building where I lived for 11 years until a year ago, and I have been stunned to see that for the first time, there is no “For Rent” sign in front. There was always at least one and sometimes five or six apartments for rent at all times. These units were advertised as luxury and as far as I was concerned, they were. Excellent maintenance, underground parking, really thick walls. I know you guys are mainly talking about houses, but I thought I’d throw in this observation anyway. I was paying $1,275 when I left, mainly because I lived there so long and my unit was not upgraded, but I think these units are now $1,400 plus if you can get one.

[JerseyGrl]

Toots

The house we are renting was purchased by the owner exactly two years ago for $640K. We have been here 1 year and have renewed the lease for another year; at the same rent of 2000/month.

Zillow (grain of salt) says it is now worth 520K.

I don’t know anybody in SD who’s rent has gone up. Looks like it’s been flat for several years.

One of my girlfriends is an attorney who works downtown and has been keeping an eye on the condo RENTAL market. She says there are some pretty good deals on brand new units.

[JerseyGrl]

Toots

The house we are renting was purchased by the owner exactly two years ago for $640K. We have been here 1 year and have renewed the lease for another year; at the same rent of 2000/month.

Zillow (grain of salt) says it is now worth 520K.

I don’t know anybody in SD who’s rent has gone up. Looks like it’s been flat for several years.

One of my girlfriends is an attorney who works downtown and has been keeping an eye on the condo RENTAL market. She says there are some pretty good deals on brand new units.

[JerseyGrl]

Toots

The house we are renting was purchased by the owner exactly two years ago for $640K. We have been here 1 year and have renewed the lease for another year; at the same rent of 2000/month.

Zillow (grain of salt) says it is now worth 520K.

I don’t know anybody in SD who’s rent has gone up. Looks like it’s been flat for several years.

One of my girlfriends is an attorney who works downtown and has been keeping an eye on the condo RENTAL market. She says there are some pretty good deals on brand new units.

[JerseyGrl]

Toots

The house we are renting was purchased by the owner exactly two years ago for $640K. We have been here 1 year and have renewed the lease for another year; at the same rent of 2000/month.

Zillow (grain of salt) says it is now worth 520K.

I don’t know anybody in SD who’s rent has gone up. Looks like it’s been flat for several years.

One of my girlfriends is an attorney who works downtown and has been keeping an eye on the condo RENTAL market. She says there are some pretty good deals on brand new units.

[JerseyGrl]

Toots

The house we are renting was purchased by the owner exactly two years ago for $640K. We have been here 1 year and have renewed the lease for another year; at the same rent of 2000/month.

Zillow (grain of salt) says it is now worth 520K.

I don’t know anybody in SD who’s rent has gone up. Looks like it’s been flat for several years.

One of my girlfriends is an attorney who works downtown and has been keeping an eye on the condo RENTAL market. She says there are some pretty good deals on brand new units.

[HLS]

I think that using downtown SD condos as an example of anything is a poor choice.

There is a very thin market of people who would want to live in a multi story urban building with limited parking.
It’s a hassle with dogs, and kids, and schools.

I don’t see rental prices for suburban houses falling that much. The support of rental prices is what will determine the real value of a house. (The value doesn’t determine the rental market)

People can afford current market rents with $50K-$80K+ gross income, it’s mortgage payments that they cannot afford.

Many people who had $3000+ monthly mortgage payments are happy to pay $2000+ for a rental and not have to worry about maintenance and insurance.

This isn’t the 90’s downturn when people lost jobs and then lost houses. Most people that are losing houses still have jobs, and they need a place to live.

Decent rentals in the $1600-$3000 monthly rent range are very affordable to many.
McMansions were never designed to be sensible rentals.
Foolish people tried to make them that.

In my younger days, the good rentals were called “bread and butter” units, usually never more than a 2 or 3 bedroom homes in average neighborhoods.
Having HOA’s and condo assn fees for a rental was not a popular choice.

People didn’t talk about buying SFR’s in high end neighborhoods as investments in those days. The concept of being a landlord has changed with the times, and many people are just out of touch with reality.

[HLS]

I think that using downtown SD condos as an example of anything is a poor choice.

There is a very thin market of people who would want to live in a multi story urban building with limited parking.
It’s a hassle with dogs, and kids, and schools.

I don’t see rental prices for suburban houses falling that much. The support of rental prices is what will determine the real value of a house. (The value doesn’t determine the rental market)

People can afford current market rents with $50K-$80K+ gross income, it’s mortgage payments that they cannot afford.

Many people who had $3000+ monthly mortgage payments are happy to pay $2000+ for a rental and not have to worry about maintenance and insurance.

This isn’t the 90’s downturn when people lost jobs and then lost houses. Most people that are losing houses still have jobs, and they need a place to live.

Decent rentals in the $1600-$3000 monthly rent range are very affordable to many.
McMansions were never designed to be sensible rentals.
Foolish people tried to make them that.

In my younger days, the good rentals were called “bread and butter” units, usually never more than a 2 or 3 bedroom homes in average neighborhoods.
Having HOA’s and condo assn fees for a rental was not a popular choice.

People didn’t talk about buying SFR’s in high end neighborhoods as investments in those days. The concept of being a landlord has changed with the times, and many people are just out of touch with reality.

[HLS]

I think that using downtown SD condos as an example of anything is a poor choice.

There is a very thin market of people who would want to live in a multi story urban building with limited parking.
It’s a hassle with dogs, and kids, and schools.

I don’t see rental prices for suburban houses falling that much. The support of rental prices is what will determine the real value of a house. (The value doesn’t determine the rental market)

People can afford current market rents with $50K-$80K+ gross income, it’s mortgage payments that they cannot afford.

Many people who had $3000+ monthly mortgage payments are happy to pay $2000+ for a rental and not have to worry about maintenance and insurance.

This isn’t the 90’s downturn when people lost jobs and then lost houses. Most people that are losing houses still have jobs, and they need a place to live.

Decent rentals in the $1600-$3000 monthly rent range are very affordable to many.
McMansions were never designed to be sensible rentals.
Foolish people tried to make them that.

In my younger days, the good rentals were called “bread and butter” units, usually never more than a 2 or 3 bedroom homes in average neighborhoods.
Having HOA’s and condo assn fees for a rental was not a popular choice.

People didn’t talk about buying SFR’s in high end neighborhoods as investments in those days. The concept of being a landlord has changed with the times, and many people are just out of touch with reality.

[HLS]

I think that using downtown SD condos as an example of anything is a poor choice.

There is a very thin market of people who would want to live in a multi story urban building with limited parking.
It’s a hassle with dogs, and kids, and schools.

I don’t see rental prices for suburban houses falling that much. The support of rental prices is what will determine the real value of a house. (The value doesn’t determine the rental market)

People can afford current market rents with $50K-$80K+ gross income, it’s mortgage payments that they cannot afford.

Many people who had $3000+ monthly mortgage payments are happy to pay $2000+ for a rental and not have to worry about maintenance and insurance.

This isn’t the 90’s downturn when people lost jobs and then lost houses. Most people that are losing houses still have jobs, and they need a place to live.

Decent rentals in the $1600-$3000 monthly rent range are very affordable to many.
McMansions were never designed to be sensible rentals.
Foolish people tried to make them that.

In my younger days, the good rentals were called “bread and butter” units, usually never more than a 2 or 3 bedroom homes in average neighborhoods.
Having HOA’s and condo assn fees for a rental was not a popular choice.

People didn’t talk about buying SFR’s in high end neighborhoods as investments in those days. The concept of being a landlord has changed with the times, and many people are just out of touch with reality.

[Author]

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