Earlier quoted context omitted.
That's about the cost of a studio in DC.
Odd. 4 years ago I paid almost $2400 for a 700sqft studio in DC. Have things changed? (Haven't lived in DC since).
Really depends on the neighborhood.
Rents are plunging in the most expensive U.S. markets
121–130 of 352 posts
Re: Rents are plunging in the most expensive U.S. markets
#122Los Angeles though... :(
One of my friends just moved here and is sharing a 5-bedroom home with 25 other people. I thought he was bullshitting me, and I still couldn't believe it when I went over. He's paying $600 a month to share a bedroom with four other guys. He told me it was the best thing he could find on 1-day notice. He pays for rent online, and he has no idea who the actual owner is, nor who is actually receiving the money.
I thought that kind of living arrangement only happened with undocumented workers (barring SF and NYC, which I've always considered to be ridiculous), who can't easily exercise tenant rights.
Now I really wonder how many of the apartments and homes around me are just completely packed with people who are splitting rooms.
Re: Rents are plunging in the most expensive U.S. markets
#123Earlier quoted context omitted.
I agree that laws passed to deal with high housing costs are often counterproductive in the long run. The classic example is rent control. Can you explain your theory that low rates drive high rent inflation? Seems like it would be the opposite for several reasons: low rates are associated with low inflation, low rates make it much cheaper to build and operate apartment buildings, etc.
Low rates drive up mortgage lending and increases housing value, that is far from being "my theory", it's an accepted phenomena. There are other things related to the housing market, like construction lagging demand(the U.S. is not building as many dwelling units as purely demographic demand needs) or demand being pro-cyclical. As far as i can tell, developers are picking up the pace and the whole situation might fix…
I thought we were talking about rent levels not home prices! Again how does low rates drive up rents?
Keep in mind that very few people borrow to pay rent while most apartments and their construction is financed by debt. At first approximation low rates would be neutral for demand but positive for supply.
Re: Rents are plunging in the most expensive U.S. markets
#124Meh. "Plunging" is a strong word for an 8% drop. Even if you buy the "effective rent" argument, 22% isn't much of a plunge. This is a start, limited to a very few neighbourhoods, and merely makes the housing market slightly less insane.
I guess if the YoY before was > +8%, a new YoY -22% is a pretty impressive change, especially it confirms through 2017.
Re: Rents are plunging in the most expensive U.S. markets
#125Meh. "Plunging" is a strong word for an 8% drop. Even if you buy the "effective rent" argument, 22% isn't much of a plunge. This is a start, limited to a very few neighbourhoods, and merely makes the housing market slightly less insane.
8% in a year is plunging. Factor in inflation, and 5 years at that rate and real rents drop 41%. That would be a massive decrease in a short period of time and it's hard to imagine it happening - which just supports the notion that 8% in a year is a pretty big drop.
You should be celebrating this news and not complaining.
Re: Rents are plunging in the most expensive U.S. markets
#126Amazing, supply and demand actually works! Someone should tell all the protestors who opposed construction of new luxury condos because they thought it would somehow increase rents.
There's nothing saying that increased supply always leads to higher supply in relation to demand, which is what affects price.
So you're arguing that demand increased more than supply in the same period? By your logic, that's the only way that prices could fall while the new housing was built.
Re: Rents are plunging in the most expensive U.S. markets
#127A 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…
Yet $1600 is still absurdly high for such a simple living space.
on short notice and short term, you're competing with hotels which are astronomical on monthly terms, or impossible to find (because they could simply rent out nightly).
Re: Rents are plunging in the most expensive U.S. markets
#128Earlier quoted context omitted.
It's unlikely to slow down San Francisco's unstoppable march towards the most legislated society in America.
March? They're Kings & Queens atop a pile of the bones of the impoverished, trying to find more skeletons to add to the pile.
And now they want to abolish the electoral college so the upper crust of SF, LA, NYC, CHI (and more) can dictate what they want from candidates. Soon you'd see candidates touting "Vegan Rights" instead of "Rust Belt jobs"...not a world I want to live in. I'd rather middle America's vote count for more if you ask me.
Re: Rents are plunging in the most expensive U.S. markets
#129Re: Rents are plunging in the most expensive U.S. markets
#130Los Angeles though... :( One of my friends just moved here and is sharing a 5-bedroom home with 25 other people. I thought he was bullshitting me, and I still couldn't believe it when I went over. He's paying $600 a month to share a bedroom with four other guys. He told me it was the best thing he could find on 1-day notice. He pays for rent online, and he has no idea who the actual owner is, nor who is actually rece…
many lower-income creative types are flocking to LA from SF and NY.