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Rents are plunging in the most expensive U.S. markets

businessinsider.com

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Re: Rents are plunging in the most expensive U.S. markets

#101

Post by kodablah »

massysett wrote: post #46
canadathrowm wrote: post #29

Earlier quoted context omitted.

It is extremely frustrating that they actually show the content, let you read a paragraph or so, THEN won't let you continue without paying in some way. I won't be supporting this website.

You already weren't supporting this website. You want them to produce content and then give it to you for free while using Adblock.

While I don't agree w/ the parent posts necessarily, sometimes providing discussion around an article has the effect of promoting it which is a way of supporting the website by drawing eyes which do not adblock. Promotion is not always direct to final consumer; popularity plays, especially on news aggregation sites.

Re: Rents are plunging in the most expensive U.S. markets

#102

Post by x0x0 »

BurningFrog wrote: post #53
zazen wrote: post #17

I know nothing about the San Francisco housing market apart from what I've heard in discussions here on HN. The received wisdom here seemed to be that powerful NIMBY lobbies in SF were preventing needed development and causing the sky-high rent. But this article is talking about an "historic construction boom". Did something change regarding development in SF? Or was the NIMBY effect always a bit over-stated? Anyone…

The "historic boom" is big compared to the very low rate of new construction of the last few decades, but still small compared to the need and potential. There is a fair amount of construction downtown, but most of the city remains frozen in time. That said, I wouldn't blame it all on NIMBYs. Few changes of any kind get done in this town.

Lots of it is nimbys, just not sf nimbys.

The entire peninsula dumps their housing problem onto sf and san jose. viz linkedin and google building millions of ft2 of new campuses for tens of thousands of employees in a town of 80k that is possibly going to study maybe building some housing. Potentially. So where do the employees go? The only places there is housing available.

Re: Rents are plunging in the most expensive U.S. markets

#103

Post by isostatic »

jacalata wrote: post #72
mschuster91 wrote: post #54

Earlier quoted context omitted.

London, I believe, has a big problem with the Brexit because many banks plan on or are already leaving the country. No banksters, no tenants for outrageously expensive properties.

Hmm, I haven't heard of any banks leaving yet.

Brexit hasn't happened yet. If it does there's no indication that they won't arrange some passporting arrangement to protect the bankers.

Re: Rents are plunging in the most expensive U.S. markets

#104

Post by Jormundir »

jaredsohn wrote: post #8
refurb wrote: post #7

A friend used to rent out a spare room in SF on a regular basis. Two years ago, he could get $1850 for a single room with it's own bath room, furnished. We're talking 6-10 replies from a Craiglist post within 24 hours. Stopped renting it out about a year ago. He just posted it again. Zero takers at $1850. Finally got someone for $1600 (-13% decrease in rent) after a month. A dramatic change. The rental market in SF i…

>The rental market in SF is definitely turning towards the buyer. Am I misunderstanding something? If rents are going down (like you suggest in your story) wouldn't that mean that the rental market in SF is turning toward the renter? Edit: Thanks for the clarification. Terminology can be confusing since there can be buyers/sellers for the renting homes market and buyers/sellers for the buying homes market.

In real estate, you are correct. A buyer's market in real estate means a good time to buy a house. A seller's market is a good time to sell a house. A renter's market is a good time to rent. I've heard different terms for landlords, usually an investor's market or a landlord's market when rents are high.

Saying the market is turning to the buyer in real estate, implies it's a good time to buy a house, and renting is comparatively expensive to a mortgage.

Re: Rents are plunging in the most expensive U.S. markets

#105

Post by Symbiote »

isostatic wrote: post #103
jacalata wrote: post #72

Earlier quoted context omitted.

Hmm, I haven't heard of any banks leaving yet.

Brexit hasn't happened yet. If it does there's no indication that they won't arrange some passporting arrangement to protect the bankers.

There's also no indication that they will, which is the whole problem for a business planning its future.

Re: Rents are plunging in the most expensive U.S. markets

#106

Post by debatem1 »

felizuno wrote: post #80

Market corrections in overpriced cities. Seattle still growing, turns out sustainable growth is sustainable.

Why do you think Seattle's growth in housing costs is sustainable? Certainly the cost increases in single family detached units have been large and rapid. My naive interpretation of that would be that such increases are a) unlikely to continue indefinitely and b) are pushing demand for 2+br apartments to unusually high levels. That's weakly supported by this data, which show a 6.4% increase in 1br prices and 8.2% for larger units. Of course, many other markets have completely taken single family detached off the table, so maybe I'm not making an apples to apples comparison.

Re: Rents are plunging in the most expensive U.S. markets

#107

Post by nostrademons »

withdavidli wrote: post #92
refurb wrote: post #81

Earlier quoted context omitted.

It is. Keep in mind this was more shorter term (3-4 months) rental of a fully furnished room. If it was a long-term lease of just an empty room it would be closer to $1300.

that's cheap if it's a decent place in a nice neighborhood. i was doing 1500 (utilities included) on nob hill with 3 other roommates and 1 bathroom a year ago. and that was the cheapest i could find in a decent location, and that's including many of my emails that went unanswered.

For historical perspective - when I first moved out to the Bay Area in 2009, I paid $900/month for a master bedroom + private bath in a 3BR townhome, in Mountain View. My roommates paid $650/month.

If you've never been through a downturn in the Bay Area, you'll be amazed at how low prices can go (and also at how many people can become unemployed and move back to where they came from).

Re: Rents are plunging in the most expensive U.S. markets

#108

Post by macNchz »

ChuckMcM wrote: post #44

The rent concessions are the real leading indicator. As every month of "free rent" in a 1 year lease lowers gross rent by 8% (4% for a 2 year lease, and 2.7% for a 3 year lease) As a strategy it assumes that the rent will come back up after the lease period. When it doesn't the rents actually get lowered to avoid being the highest rent in the list. Also there is an impact on increasing AirBnB regulation both from cit…

A whole bunch of big new 'luxury' rental buildings have flooded the market in my area of Brooklyn, and the 'free rent' concessions they're offering–especially with a bit of negotiation–are substantial. Some friends of mine recently moved into one (with a few months free rent), and it's shocking how few apartments have been rented despite how long the building has been available.

The effects of these buildings coming online have been noticeable in my nearby neighborhood: two apartments in my 6 unit building that otherwise would have been rented in a matter of days sat empty for several months until they lowered the asking rent multiple times, I got an immediate 'yes' to a lowball counter when it came time to re-sign our lease, and the number of nearby 1 bedroom listings under $3k has multiplied dramatically since the last time I was searching for a new apartment.

Re: Rents are plunging in the most expensive U.S. markets

#109

Post by matt_wulfeck »

brianwawok wrote: post #100
malnourish wrote: post #91

Earlier quoted context omitted.

For further comparison I pay hundreds less for an upscale (but not top of the line) 2 bedroom apartment in a Minneapolis suburb.

And I pay a $800 a month mortgage for a 3500 square fort castle with 5 beds and 4 baths on 1/2 acre in BF Indiana. Doesn't mean I am getting a good deal though, just where I happen to be. I would way rather be paying more for a city home :)

But how many tech jobs are located within a reasonable commute of your home?

Re: Rents are plunging in the most expensive U.S. markets

#110

Post by da02 »

brianwawok wrote: post #100
malnourish wrote: post #91

Earlier quoted context omitted.

For further comparison I pay hundreds less for an upscale (but not top of the line) 2 bedroom apartment in a Minneapolis suburb.

And I pay a $800 a month mortgage for a 3500 square fort castle with 5 beds and 4 baths on 1/2 acre in BF Indiana. Doesn't mean I am getting a good deal though, just where I happen to be. I would way rather be paying more for a city home :)

What job did you get there? Or did you move there because of love/marriage?
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