Let's see, there are two million vacant homes for sale in America today, condo conversions are going back to apartments as nobody wanted to buy 'em, millions of REIC are losing their jobs, millions of illegal hispanic (renters) are soon to be jobless or heading back to Mexico, millions of former renters got suckered into the housing ponzi scheme leaving millions of former rentals empty, and millions of homes are being built today with no buyers.
Yup, rents are going to go up.
Ha! Not!
Fill us in Bitter Renters - has your rent gone up in 2007? Do you expect it to? I can tell you here in London my rent stayed the exact same, even in a town where the bubble is alive and well.
Memo to any bitter renter - offer 10% less than you're currently paying when your lease comes up. If your landlord says no, choose from one of the millions and millions and millions of other places for rent.
And for god's sake don't live in an apartment - there are plenty of great condos and homes renting for pennies on the dollar today versus the cost of owning, and much nicer than that 80's Jack Tripper apartment complex. And at this point, Desperate Homedebtors and F*cked Flippers will be glad to take any cash flow to help them avoid foreclosure.
Renters will dig deeper in 2007
Renters be warned: Landlords are expected to raise apartment rents for a third-straight year in 2007, forcing tenants to turn over a growing chunk of their pay and making it harder to save for a home, a report to be issued today by Marcus & Millichap finds.
Renters will get a bit of a break in places such as Miami, Las Vegas and San Diego, where investors bought thousands of condos, hoping to flip them for a quick profit. Since the market faltered in late 2005, many of those condos have been empty, and investors are seeking tenants to help pay the mortgage.
Mohamed Amar bought two Las Vegas condos in 2005 that he's trying to rent. "I thought it was a good investment," says Amar. "But when I tried to put it on the market, the developer started cutting the price, and they killed everybody."
February 05, 2007
FLASH: USA Today reports that rents will be go up in '07. HP question: Is anyone stupid enough to let their rent go up in '07?
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Not kidding, my rent increased last year by .02%. Yes, that is decimal zero two. I'm real bitter! ;-)
They can't hide the truth:
Vacant homes for sale cloud hopes for housing recovery
Amid brightening hopes that the U.S. housing market is stabilizing, some economists are zeroing in on a piece of data that could augur badly for the consensus view: the homeowner vacancy rate.
That figure, an often-overlooked measure of how many homes for sale in the country are empty, has climbed to its highest level since the Census Bureau began tracking it four decades ago. Last week, the bureau said that in the final three months of 2006 there were about 2.1 million vacant homes for sale.
That brought the national homeowner vacancy rate to 2.7 percent, up from 2.0 percent a year earlier. Before 2006, the number had never risen above 2.0 percent. Like the housing economy more broadly, the measure varies by region: The South had a homeowner vacancy rate of 3.0 percent, the Midwest had a rate of 2.9 percent, the West had a 2.4 percent rate and the Northeast had a rate of 2.0 percent.
The report, which usually gets little attention, sparked fresh concerns about the housing market.
I live in North Scottsdale, AZ.
My rent is going down, IF i wanted to say at this joint. I pay 915 and it would be 905.
..BUT...BUT...BUT..If i move down the street 1mile to FrankLoydWright Blvd, i can get the same size place for 750/mo.
BUT...i really want to move out of PHX METRO.
I would love to live in sedona or flag, or even tucson, but NO JOBS.
may be out of AZ in 6mos.
Furthermore, the air has been so cruddy for the last few days, that i could smell it...and my sense of smell is shitty since moving here.
keith, if you get a photo album for the blog, i'd love to send in pics of smog and skeleton projects in AZ
Yeah, they say rents won't go up in Miami, or Vegas, or San Diego. What about Phoenix, or Detroit, or Philly, Dallas, or Boston? Rents are going down in those places too. I guess what they mean is that they never step foot outside NYC.
I rent a condo from a seriously FB who thought he would be a RE tycoon. When I renewed, he tried to up my rent $120 because of increased insurance, condo association fees, etc. I told him flat out NO. I would have told him I wanted a decrease, but I didn't want to move if things didn't go my way. My rent stayed the same.
As a landlord, we have about 1000 apartment units in this city. For the first time in many years, we are not going to raise rents. We aren't dropping them either. But, if our occupancy drops to what the rest of the city is seeing, we WILL drop our rents.
Webster NY rent went from 680 to 715 due to fuel and "other costs". What a bunch of Aholes - Farash corp! 35/680 =5% increase meanwhile my pay went down! AAUUGGHH!
Only a total fool would allow their landlord to raise their rent this year. They're desperate for renters but may try to raise rents to raise total revenue even though their vacancy rate rises.
The problem in Miami (land of crooks) is that there's a conspiracy by the media to protect the real estate industry. The newspapers make money with real estate clerks posting classified ads. That's why you hardly see any truthful article about the housing bust, huge increase in inventory, or mortgage fraud. Like Wall Street, the media is always painting a rosy picture. They pee on your back and say that's raining.
my LL offered to extend my lease when it's up in April at the same rent i pay now... she's worried i'll find something cheaper between now and then... smart gal!
-Arlington, VA
"rents will be go up" ? Huh, sounds stupid.
Rents are easily negotiated down in Florida for both single family houses and condos. It is amazing how many houses built within the last three years are offered for rent. And this is the busy season. By late spring, it will be a renters bonanza down here. You will be able to work one home owner off the others.
Location: top Pinnacle Peak area of North Scottsdale: my lease on 3,500 sq. ft. home sitting on 1.7 acres with big pool and spa, detached huge guest house and 3 car garage, costs $2,400 per month. Owner/Management office has been notified that moving out after our two-lease expires in late spring.
Recently contacted by realty office that we can renew if interested at new monthly rate of $2,200. Thanked them for the offer but advised them not moving in-state but getting the flock out of this dead end state and Scottsdale-Potemkin village dump.(not exactly in those words).
(Can walk out my front door 15 minutes in either 4 directions and come across at least a dozen homes for re-sale in the $1 mil range. People are realizing the party is over and trying to cash-in on a sinking market. I was lucky to sell two years ago, figuring out it was all too blotaed for this type of city and foresaw the current burst).
Unfortunately, I can attest to the fact that rents are firm, and even going up, in many parts of the Seattle area. I rent a 3 bedroom home, and have noticed that rents for similar places have been going up in the last year.
There are some parts of the Puget Sound where prices are moderating, but not in the areas I live in, and I would rather not have to take a long commute into work.
On the other hand, home prices have been appreciating MUCH faster than rents. Comparitively speaking, renting is a MUCH better deal than owning has ever been around here.
Still, I would rather just have dropping rents, even if the over-all home-ownership costs were going down faster.
That's right QWEEFIE. USA Today is lying. Everyone is lying. Only you speak the truth.
My what an inflated ego we have today.
In 2003 I paid $1050 a month for my apartment in Las Vegas before buying a home. I have a friend who still lives in the complex and he said the same model now goes for $1210. Said friend still kicking himself for not buying when I did even with this supposed crash occuring.
Despite what happens in HPland, in the real world rents are increasing.
I live in an upscale high-rise apartment building in San Francisco. They tried raising my rent from $2550 to $2650 while at the same time they were offering substantial concessions to new tenants.
I called them on it. Instead of get a $100/month rent increase, my rent went DOWN by $50!
Living outside of Boston...
My 2002 rent for a 2 bdrm/1 bath was $1425.
In 2005, I moved to a nicer 2 bdrm/2 bath (yet, retaining the same sq footage and in the same neighborhood) and paid $1325; the rate's been flat ever since. I can't complain because I had a 15% raise during that time period but lowered my living expenses.
REIC ads must be working. All of my co-workers say they will be buying in spring as prices will be the cheapest then and they believe (from media outsources) that this is the trough and that price will go back up again. The one co-worker said he would be buying new because of all the great incentives being offered by new home builders.
Oh, forgot to mention that the co-workers all started talking about how the houses are so worth the 300K asking prices with it being around 2K sf and having ss sinks, granite countertops, and 19" floor tile...
Rents arent necissarily going down in Northern VA yet. But instead of renting a 1940's shack, you can now rent a 2006 spec home for the same price. Lots of flippers sitting on condos and houses that havent sold. I am seeing more houses with signs that say Price Reduced! For Rent! For Sale! All on the same sign, haha.
People who rent have heard of craigslist and once summer rolls around, you will see a lot of Uhual trucks of people moving up in rentals for the same price.
Casey serin is looking for honest, paying tenants. Only those with a job need apply.He has several homes for rent right now.Contact him via his website. He needs a jamba juice today too so any donations are much appreciated.
I have been living in Silicon Valley (northern California) for about 7 years now, since the peak of the dot com bubble.
My rent in 2000 was $1550 a month for a mediocre 1 bedroom apartment.
I now rent a two bedroom apartment in a complex near the previous one which is much nicer and closer to downtown. The rent is $1400 per month.
Am I worried? Not particularly. Not to mention that those articles gloss over the fact that many areas have rent control in place to limit upside increases in rent.
I'd personally live in a 1940s house with some character and built right instead of a 2006 cookie cutter spec home that built by illegals with the cheapest materials possible.
I sense the NAR on the take on this one. They don't state why rents are going up!
I bet the NAR paid them to write this article!!!
No rent increase for me in West Los Angeles in 2007. Owners are just happy to have a responsible renter who pays rent on time.
illegals aren't going anywhere but to the back of the amnesty line.
That makes no sense about rents in Las Vegas going up. The inventory in Vegas keeps growing and growing. I highly doubt someone in Vegas could not negotiate a better rental deal.
Landlords would be wise not to do two things to me this year..the first is raising my rent- I will move across teh street to one of the many available townhomes. The second is trying to keep my security deposit- I am really sick of this and will seriously return just to break some shit and make your life miserable. I will also stop by occasionally to put crickets under the doors to drive your new tenants crazy. Just for fun, I may even leave upper deckers in each toilet before I leave-just in case. If you do not know what that is, please have someone else explain.
"My what an inflated ego we have today."
Dude, plain and simple, you're a douche.
So that's what Marcus and Milchap says. Go figure.
http://www.marcusmillichap.com/
Our rent just dropped $75 a month. Our landlord really likes that we as tennants treat the place well.
My rent dropped 15% when I renewed my lease. I have a nice 2/2 with an office and covered parking only 10 minutes from work. I will buy a foreclosed house from a FB later.
The only apartments going for over $1200 in Vegas are high end luxury apartments. Even that would be less than half the PITI for the average LV stucco box on a 30 yr note.
My rent is going from $750 to $775. Boo Hoo! Still far cheaper than buying a comparable condo for $150,000 with a $289 a month HOA fee.
Ha Ha sucker home debtors!
I could probably talk my landlord into keeping it at $750, but I honestly just don't care about $25 a month.
-Dragasoni-
@10:34
I'm sympathetic, but here in FL, with the high cooling costs in summer, I'll take neither, please. A small apartment in concrete block construction with trees will keep my GRU bills nice and low. (Here in Gainesville, the landlords have managed to pass taxes on to the tenants by having GRU run a massive "surplus" which is kicked back to the city general fund. Thus, they don't have prop. tax increases, just electricity rate increases. And yet the populace is still so distracted or ignorant that it continues....)
Uh Oh! Better run out now that the market has bottomed, interest rates are still low and rents are going up. Got me scared, I'm going straight to a realtor tomorrow to get me into a place I own, don't want to keep throwing that money away.
My rent has gone up by a token amount, something like $5, since 2002. This is in a place that rents for $800 that would sell for $250,000 to the few remaining greater fools.
In real dollars, my rent has been dropping every year.
I live in an affluent area of coastal New Jersey. My rent on my 3br 2.5bth + garage townhome has stayed the same for 3 yrs now. I expect the same again next year.
The USA Today is a fish wrapper. You would have to be an idiot to let your rent go up this year. Rents are easily negotiated down and their is a ton of rental inventory on the market.
I'll admit it, I am bitter that with the money I have saved and the money I make, I don't own a home. But, why would I be so stupid to put 20K to 30K down on a house and take out a morgtage when housing prices are dropping and I will just loose that money in a few months? Please tell me?? You can't. I'll keep saving my money renting and when the market finnaly does hit bottom, I'll be waiting. For you idiots who keep posting this and that about bitter renters living in crappy apartments with mexicans, etc.. above and below, I'm coming to your neighbor and I'm going to lower all the comps there and I do hope you took out a heloc out.
In So Cal, I've been waiting to move from my $1550 2+1 condo to a small house in the same neighborhood until house rents fell below $2500/month. This has happened in the past month or two and there are now several houses on the market that would meet my needs and rent for under $2500/month. I am wondering whether to rent one in March or wait until the real flood of inventory in the spring. Either way I don't want to sign more than a six month agreement as rents are falling quite noticably in this range, in part because this range requires some actual income and many people with actual income are momentarily under the impression that they "own" a home or have moved to a state where they can afford a house. However, I believe the pool of low end renters with destroyed credit will be growing pretty quickly by late 2007.
You think all the illegal mexicans are going back to mexico??? Think again, instead of having 2 or 3 families in one home, there going to manage 4 or 5 in order to come up with the increase in mortgage payments. Mexicans aren't going anywhere...
From Investors.com:
People who bought single-family homes hoping to soon sell them for a quick profit have given apartment owners perhaps the biggest competitive surprise of late: These now financially hamstrung speculators are putting the houses up for rent.
BRE Properties, (BRE) a real estate investment trust in San Francisco that owns and operates about 27,000 apartment units in the West, is facing such competition. A growing number of single-family homes are being rented in markets such as Phoenix and San Diego, BRE executives said on the firm's third-quarter conference call last fall.
The supply of single-family home rentals is increasing in Sacramento too. In the fourth quarter last year, apartment occupancies fell to 92.5% from 94.2% in the third quarter, says RealFacts, a Novato, Calif., firm that analyzes apartment data.
A major problem with old-construction houses is energy inefficiency.
I actually like living in a large-scale managed apartment; I don't have to do any maintenance. In fact, I consider renting from an individual to be a nightmare -- everyone wants the money from being a landlord but no one wants to do the work. I'd rather have a professional company do it.
Plus it's tougher to get a house in a hot spot (for me living near work is a priority).
People who rent have heard of craigslist and once summer rolls around, you will see a lot of Uhual trucks of people moving up in rentals for the same price.
Already did that...
The house we were renting sold to a FB in Nov. The new owner wanted to raise the rent form 1350 to 1550. Top rent in this area is 1500 unless it is something really special. I asked him if he had ever heard of Craigs list, and that he should take a look before he made a decision on the rent. Well to make a long story short, we rented a much better place for the same price. His house is still sitting empty... Too bad sucker!
During the late 80's in Los Angeles, a two bedroom apartment cost $1200 plus they wanted first, last and 1 month security deposit for a total of $3600 to move in.
Now, they only want $1200 plus $300.
That's how desperate they are to rent now.
Moved to San Diego in 1999.
Paid $1375 rent for 5 months - painful. Nice rentals were in very scarce supply.
Bought a brand new 1400 sq.ft. house in 2000 for $1581 monthly payment. Lender no-cost refinanced to $1426 when rates dropped.
Traded up to a 2500 sq.ft. luxury home in 2003. Payment increased from $1961 to $2049 because of higher insurance and taxes.
Equivalent rentals go for $2400 and up. Quite happy to be a homeowner and 3.5% borrower, thank you.
"Sky is Falling" Choad Lickers - No property in La Jollas is going to drop from $800k to $200k. No market in this country, particularly land constrained coastal areas, will see anywhere close to that decline.
Face the fact renters, you missed the boat on the biggest upswing in home prices this nation may ever see. Prices are pulling back, but many of us have cashed in on a boatload of equity.
The REIC-bought-and-paid-for papers here (Seattle Times and P-I) have been screeching for over a year about how rents have to go up. They've done everything but call for them in editorials.
The reality, of course, is that they're dropping. Just pick a few ads from the ever-expanding sea and watch them day to day.
OH MY GOD RENTS ARE GOING UP I MUST GO BUY A HOME TODAY REGARDLESS OF PRICE OR FUNDAMENTALS!
"Prices are pulling back, but many of us have cashed in on a boatload of equity."
Which means you're now renting, Melvin. Oh, wait, you'd never do that. Which means you're a troll who couldn't hack it for 5 posts on FC.
Absolutely! Do not stand for any rent increases!
It is very easy to "Just Say No". I've done it in the past in both Seattle and Boston during times like this (oversupply of buildings and stretched beyond the max lanlords).
Tell them you're moving and either they will 1) leave your rent the same, 2) actually CUT your rent (!) just so they can keep a renter or 3) worst that happens is you do move and find a better deal.
Renters are going to have to stand up for themselves now because the propaganda is all about rising rents to cover these financially irresponible homedebters.
At this point, I seriously doubt there is a city or hamlet in the US that is undersupplied in rentals.
Don't let yourself get screwed by a homedebtor!!
Mikhail-
You are either not paying attention or are drinking the local rags koolaid if you seriously think rents are rising in Seattle!
Whatever dude, if the LL asks for an increase and you fall for that, all I can say is you are an F'ed homedebtors DREAM!
Renters are priced out FOREVER!!! There will never again be a first-time homebuyer. LMAO - you REIC clowns make me laugh
I sold in 2005 and am RENTING now. All you fools who pumped home prices up the past few years - thanks for making me a boatload of money.
The suckers who bought at the top the past 2 years will miss out on the biggest foreclosure deals this nation may ever see.
Anyone who didn't sell the past three years didn't gain anything. Just like owning a stock, you don't make any money until you sell. Your neighborhood could become a Section 8 slum in the next five years.
Face it choad lickers - no way pets.com stock will ever go below $10/shr. No internet stock anywhere will drop that much.
Face it, you missed out on the biggest tech stock upswing this nation may ever see. That Warren Buffett is an idiot for not putting all his money on dotcom stocks.
Here we go again...foolish renters comparig pets.com with La Jolla real estate. If it makes you feel better at night as you try to sleep in the decrepid 1 bed/1 bath ghetto apartment but are kept awake by the negro "music" from above, below, left and right of you.
Here we go again...foolish renters comparig pets.com with La Jolla real estate.
I would rather be dead and have my ashes scattered over Humboldt Bay than breathe your filthy air down there.
My rent is the only expense I've had for the past three plus years that is either steady or declining. (St. Louis market). If I were inclined to move again, I could find a bigger and nicer place for slightly less money at this point so, sorry, but I'm not buying that story at all.
TRENT,
my friend, L-O-S-E, say it, LOSE!!
LOSE LOSE LOSE LOSE LOSE LOSE!!
ahhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhh
JAFO
Was looking for a new TH last October and met with a LL. Asked him to reduce the rent from 2300 to 2100/month and give me 500-1000 to fix up the yard so that it looked nice. Told him that I was a good tenant, always paid on time, and gave him copy of my credit score to boot. Girlfriend and self are well paid professionals with no kids.
Of course, he would not agree to te reduction and we found something else. 3 months later he's calling me asking if I found a place because his tenant with 3 kids backed out.
Ha f*cking ha.
Retard babbling in five years:
"Here we go again...foolish gold bears comparig La Jolla real estate with gold. If it makes you feel better at night as you run from your jizz-mopping job to spend your toilet paper fiat money before it depreciates further."
Non-bubble tards will of course have sold by that point. The usual crowd will just be fooled again, and again, and again.
My wife and I are moving out of town (San Diego) thanks to a new job. Knowing that the market was dead here, we knew we coudn't just list it and hope for the vest. So we looked around at comparable homes for sale in the area and listed ours for $40K lower. We painted the house, put in new carpeting, had it professionally cleaned top to bottom and spent about $1000 on new decorations. Paid a $299 MLS listing fee and offered 3% to a buyer's agent. Sold in 2 weeks.
After all closing costs, both buying and selling, painting costs, carpeting, etc we will end up with a $200K profit. Had we sold last year, probably could have made an extra $50K without doing anything other than putting a For Sale sign in front. Oh well, c'est la vie, can't win 'em all. I'm not going to complain for ONLY making $200K tax free for doing nothing but living in a home for 3.5 years.
Since we're not too familiar with the city we're moving to (Atlanta) we are going to store our stuff and rent a furnished apartment month to month while scouting out different areas of town. I have absolutely no hesitation in buying once we settle on an area. Atlanta's prices are slowly but surely rising 3-4% a a year, there was no bubble there so there is nothing to burst.
Anonymous said...
Moved to San Diego in 1999.
Paid $1375 rent for 5 months - painful. Nice rentals were in very scarce supply.
Bought a brand new 1400 sq.ft. house in 2000 for $1581 monthly payment. Lender no-cost refinanced to $1426 when rates dropped.
Traded up to a 2500 sq.ft. luxury home in 2003. Payment increased from $1961 to $2049 because of higher insurance and taxes.
Equivalent rentals go for $2400 and up. Quite happy to be a homeowner and 3.5% borrower, thank you.
Tuesday, February 06, 2007 5:57:10 AM
-------------------
That ARM is going to start hurting pretty soon.
Renters Lick Choads said...
"Sky is Falling" Choad Lickers - No property in La Jollas is going to drop from $800k to $200k. No market in this country, particularly land constrained coastal areas, will see anywhere close to that decline.
Face the fact renters, you missed the boat on the biggest upswing in home prices this nation may ever see. Prices are pulling back, but many of us have cashed in on a boatload of equity.
Tuesday, February 06, 2007 6:01:42 AM
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The only way to have "cashed in on a boatload of equity" is to have sold near the peak. Anything else is just a homedebtor's pipe dream.
Anonymous said...
Here we go again...foolish renters comparig pets.com with La Jolla real estate. If it makes you feel better at night as you try to sleep in the decrepid 1 bed/1 bath ghetto apartment but are kept awake by the negro "music" from above, below, left and right of you.
Tuesday, February 06, 2007 2:58:28 PM
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What happens to La Jolla real estate when another couple million illegals invade San Diego county?
Very interesting stuff. Getting ready to move first week of April (renting) here in Orlando, FL (lots of "for rent" signs in my part of town). Thanks Keith and fellow HP-ers!!! I'll keep you all posted what happens next month or two.
2.1 million VACANT houses for sale! What kind of insanity is that! Houses are meant to be homes for people to LIVE IN, not tokens to be exchanged so lazy fat bastards can make money. I say the law should be changed so that all houses must be occupied, or good reasons given why they are empty. I truly hope house prices go down to what they are actually worth, based on fundamental market forces of supply and demand. I have no sympathy for a housing gold rusher, who just couldn't be bothered to do something actually productive to make their living. See you all in bankruptcy court, suckers!
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