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Rents are dropping across the US

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Re: Rents are dropping across the US

#121

Post by mywittyname »

credit_guy wrote: post #67

That hasn't been my experience. My lease expires mid August, and I already got the lease renewal. The same level as the current one, not a dollar less. We started looking around. Everywhere the same, same level as the current one. I didn't get to ask about free months yet, maybe management companies will offer one-two months. But the actual rent per month is not going down, despite a significant number of vacancies.

Recessions take a while to sink in. Your landlords are predicting a swift pickup after this "minor dip" and are acting accordingly.

My experience with large property management firms is that they aren't keen on handing out discounts to existing leasees.

Re: Rents are dropping across the US

#122

Post by kec »

cududa wrote: post #77
Spooky23 wrote: post #8

Earlier quoted context omitted.

People are doing more than that. A former colleague caught folks working remote overseas as well.

What do you mean “caught”? Is there a stipulation on time zone or country? Truly don’t see the problem of bopping off to another country as long as you’re still doing your work and active in the team?

Businesses don't like to be suddenly subject to some random localities laws, especially not if that means they're accidentally in violation (eg, not paying income tax to the correct authority, having employees perform work on the wrong visa or without a permit, etc).

Re: Rents are dropping across the US

#123

Post by doh »

taylorhou wrote: post #94

If I were a renter right now and in an urban area with a lease renewal coming due, I'd 1000% call the mgmt co's bluff. Context: my firm provides back office services to 50k+ rental units across the nation and unless you're in some oddly hot market, most mgmt companies currently are holding their breath that their renters don't say anything and renew at the same price. If you're reasonable, you can easily negotiate a…

We just canceled our lease two weeks ago. We had a large apartment in one of the new high-rises in Downtown LA.

The last offer was 3 months free and 2 parking spaces free if we stay for 12 month lease, which comes to 34% discount on the rent including parking.

Other buildings are offering by default two months rent-free and they will pay the movers if you decide to move in.

DTLA is a special place as it has plenty of new supply, but I can imagine that it's not too different in other places across LA.

Re: Rents are dropping across the US

#124

Post by ghaff »

majormajor wrote: post #117
asveikau wrote: post #88

Earlier quoted context omitted.

Maybe this sounds strange, but I think there is also a category of people who prefer suburbs or exurbs and are really bitter that the pendulum has swung back to cities in the last ~20 years. They are really eager to see a trend out of small amounts of data. Or proclaim urban life dead, now and forever. I personally feel strongly in the other direction. We had the infamous "white flight" and car-centric communities an…

> Maybe this sounds strange, but I think there is also a category of people who prefer suburbs or exurbs and are really bitter that the pendulum has swung back to cities in the last ~20 years. What would they be bitter about? The suburbs of "thriving" cities are "thriving" in basically exactly the same way as the city centers are. Even in the extreme examples like the Bay Area, the crazy SF prices haven't stopped pri…

The Bay Area is a bit of a special case in that a lot of the big tech employers (especially) are in the 'burbs--which, sorry, is what SV is. Yet you don't really escape urban housing pricing anyway.

By contrast, the Boston area for example you can get to significantly cheaper (though not exactly cheap) housing out where a lot of the, especially local, tech employers are. Things have shifted more towards the city in recent years but a lot of tech is still 30-45 minutes outside the city.

Re: Rents are dropping across the US

#125

Post by RandomBacon »

credit_guy wrote: post #67

That hasn't been my experience. My lease expires mid August, and I already got the lease renewal. The same level as the current one, not a dollar less. We started looking around. Everywhere the same, same level as the current one. I didn't get to ask about free months yet, maybe management companies will offer one-two months. But the actual rent per month is not going down, despite a significant number of vacancies.

Negotiate. Tell the manager they've been great, but ultimately it comes down to dollar price for you. Let them know you're starting to look elsewhere unless they can lower the rate. When they reply, even if you like the rate, don't tell them that. Tell them it's not what you are looking for; that because of work and expenses, that rate isn't as affordable. Give them another chance to offer another lower rate or add a perk such as a free month or two.

Re: Rents are dropping across the US

#126

Post by Spooky23 »

cududa wrote: post #77
Spooky23 wrote: post #8

Earlier quoted context omitted.

People are doing more than that. A former colleague caught folks working remote overseas as well.

What do you mean “caught”? Is there a stipulation on time zone or country? Truly don’t see the problem of bopping off to another country as long as you’re still doing your work and active in the team?

There are many scenarios where compliance or other requirements require data to be resident in a particular locale, or specific controls. Some companies even provide loaner devices if you cross a customs boundary.

Also HR issues. If you're working in France for a US company, are you subject to French employment law?

Re: Rents are dropping across the US

#127

Post by slg »

Finnucane wrote: post #92
Pxtl wrote: post #38

Seems silly to discuss the falling rental prices in prestigious cities without even a nod to AirBNB. AirBNB rentals have collapsed , and so a lot of owners have moved their properties into conventional long-term rental. This has created a glut in the rental market, and is driving prices down. https://www.straight.com/news/some-vancouver-airbnb-units-ar...

Also, I have to wonder if empty apartments held by investors as ‘safe deposit boxes’ will start to appear on the rental or sale markets if the value drops. And this will have an effect on new construction: if demand weakens, construction will drop off.

>Also, I have to wonder if empty apartments held by investors as ‘safe deposit boxes’ will start to appear on the rental or sale markets if the value drops.

Cities are also making moves that might increase the chances of this. Los Angeles just took steps yesterday to put a vacancy tax on the November 2020 ballot.

Re: Rents are dropping across the US

#128

Post by paulpauper »

>At the end of May, Ilana Freund landed a deal on an apartment in New York City where she will be attending graduate school. She and her roommate signed a lease on a two-bedroom apartment in the West Village for $4,995 a month. It was a significant discount: Similar apartments in the building were going for around $5,300 before the pandemic took hold, according to the listing agent.

wow a whole 6% reduction. Odds are next year it will be back at $5,300. One way to offset this reduction is to increase the mandatory down-payment or increase min. duration of the lease.

Re: Rents are dropping across the US

#129

Post by jjoonathan »

asveikau wrote: post #88
spamizbad wrote: post #27

Earlier quoted context omitted.

> Maybe not so good for those who were especially attached to either the vibrant city life or busy office life. I don't understand this reasoning. Was city life not vibrant when rents were 1/3rd the price? If anything, "hypergentrification" tends to have a sterilizing effect on city life. To be honest I'm kinda looking forward to it. Nothing against HENRYs (High earners, not rich yet)... but their "cultural tastes" a…

Maybe this sounds strange, but I think there is also a category of people who prefer suburbs or exurbs and are really bitter that the pendulum has swung back to cities in the last ~20 years. They are really eager to see a trend out of small amounts of data. Or proclaim urban life dead, now and forever. I personally feel strongly in the other direction. We had the infamous "white flight" and car-centric communities an…

> Maybe this sounds strange, but I think there is also a category of people who prefer suburbs or exurbs and are really bitter that the pendulum has swung back to cities in the last ~20 years.

Yeah, that would be me. Paying a King's ransom to rent a hovel in an urban desert isn't my idea of fun. It would probably be OK if I did 100% of my work on a laptop, but with hobbies / side-hustles that involve physical equipment and space, an apartment isn't just dismal, it's stifling. Renting tools is like renting an apartment: high cost, low quality.

I'm counting the days until I can escape.

Re: Rents are dropping across the US

#130

Post by nemo44x »

slg wrote: post #127
Finnucane wrote: post #92

Earlier quoted context omitted.

Also, I have to wonder if empty apartments held by investors as ‘safe deposit boxes’ will start to appear on the rental or sale markets if the value drops. And this will have an effect on new construction: if demand weakens, construction will drop off.

>Also, I have to wonder if empty apartments held by investors as ‘safe deposit boxes’ will start to appear on the rental or sale markets if the value drops. Cities are also making moves that might increase the chances of this. Los Angeles just took steps yesterday to put a vacancy tax on the November 2020 ballot.

Interesting. I've read, however, that something like that is probably very easily unconstitutional and/or easy to get around. The bigger issue is that the tax code gives landlords incentive to not rent at "market value" and hold out for more money on a long term contract.
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