1
0

Rent Drop Data


 invite response                
2016 Sep 7, 10:42pm   3,576 views  9 comments

by deepcgi   ➕follow (0)   💰tip   ignore  

Interesting new numbers (via Zumper). Rents are down (on 1, 2 or 3 bedroom locations) year-over-year in 34 of the top 100 markets. 30 of these markets had YOY rental increases or were unchanged for the previous 3 years.

I think it’s an interestingly broad mix.

Albuquerque, Anchorage, Aurora, Austin, Baltimore, Bakersfield, Baton Rouge, Charlotte, Cincinnati, Dallas, Fort Lauderdale, Glendale, Henderson, Houston, Indianapolis, Kansas City, Knoxville, Laredo, Las Vegas, Long Beach, Lubbock, Norfolk, Oakland, Omaha, Orlando, Raleigh, Richmond, Reno, Salt Lake City, San Jose, Scottsdale, Seattle, St. Petersburg, and Tallahassee

#rents

Comments 1 - 9 of 9        Search these comments

1   BayArea   2016 Sep 8, 6:54am  

Here in Berkeley/Oakland I only see it continuing to skyrocket...

I have a rental here and each month my eyes are popping out of my head as the comparable rents just keep going up and up and up.

Back in 2012, the area I'm in was seeing $1600/mo for a 1bdrm, now it's $2600/mo just 4yrs later.

However, on average, the increase during that time is closer to 40% in the city of Oakland from what I see

Most of these articles arguing rent decrease are either cherry picking data or reporting noise.

Rents are certainly leveling off, they can't go up forever. But falling? Not a chance.

2   deepcgi   2016 Sep 10, 11:48pm  

the locations above were seeing multi-year-over-year increases for the same month only to have decreases this year for the first time - breaking the trend.

This coinciding nicely with the Vancouver housing crash just as I predicted several times before. And it is because the market has not been based on any solid fundamentals for nearly 20 years (yes, TWENTY - pronounced Toooo---Ent----Eee), but rather on Federal Reserve bad securities bail-outs, Chinese shadow banking, and an entirely corrupt system of Central Banks.

Up in Vancouver, Mom and Pop Empty-nesters are saying:

Grandpa:
"Hey honey our little $35,000 4 b/2.5 bath home-sweet-home of thirty years has appreciated to $855,000. Yay! Maybe now that I have seven incurable diseases we should sell and move into a smaller place. How much are are those new 1 bed/1.5 bath condos down the street going for?"

Gandma:
"Hm. The sign say 500 sq ft condos from the low 600's!"

Grandpa's final response:
"Gak! Chortle! Sputter! Ictt! Pblt!"
Clutch left arm. Flatline.

And THEY were lucky-ass baby boomers.

3   bob2356   2016 Sep 11, 4:09am  

deepcgi says

I think it’s an interestingly broad mix.

Albuquerque, Anchorage, Aurora, Austin, Baltimore, Bakersfield, Baton Rouge, Charlotte, Cincinnati, Dallas, Fort Lauderdale, Glendale, Henderson, Houston, Indianapolis, Kansas City, Knoxville, Laredo, Las Vegas, Long Beach, Lubbock, Norfolk, Oakland, Omaha, Orlando, Raleigh, Richmond, Reno, Salt Lake City, San Jose, Scottsdale, Seattle, St. Petersburg, and Tallahassee

Where is zumper getting it's numbers from? I in the vegas market and rents have been climbing steadily for 5 years now. Every source I look at says rents increased 3-5% this last year. https://www.rentjungle.com/average-rent-in-las-vegas-rent-trends/ http://www.trulia.com/real_estate/Las_Vegas-Nevada/market-trends/ as a couple examples.

4   Tenpoundbass   2016 Sep 11, 8:02am  

deepcgi says

Grandpa:

"Hey honey our little $35,000 4 b/2.5 bath home-sweet-home of thirty years has appreciated to $855,000. Yay! Maybe now that I have seven incurable diseases we should sell and move into a smaller place. How much are are those new 1 bed/1.5 bath condos down the street going for?"

Gandma:

"Hm. The sign say 500 sq ft condos from the low 600's!"

Grandpa's final response:

"Gak! Chortle! Sputter! Ictt! Pblt!"

Clutch left arm. Flatline.

Grandpa was an idiot buying a house for his retirement plan.

5   Patrick   2016 Sep 11, 10:35am  

Houses in general do not increase in value. They simply reflect the continued destruction of the dollar.

Note that I said "in general". If salaries rise in a certain area more than in another area, real estate will follow.

https://patrick.net/House+prices+compared+to+salary+density

6   BayArea   2016 Sep 11, 1:38pm  

Banks will give a loan so that the monthly mortgage is roughly 45% max of your gross monthly income. People will stretch themselves to this conformity and home prices will reflect this based on salaries in the area.

That's why you got $1M shoe boxes on the Peninsula.

7   Strategist   2016 Sep 11, 4:29pm  

rando says

Note that I said "in general". If salaries rise in a certain area more than in another area, real estate will follow.

Not just salaries, but population too. If you add in the limited coastal areas, you get a synergistic impact on home prices.

8   missing   2016 Sep 11, 5:08pm  

Sharingmyintelligencewiththedumbasses says

you could have done much better: you could have consulted with them bought at the bottom, bought a couple, and have made millions.

or even better: consulted with me, invested his equity (saved from not buying a house) aggressively in the stock market (generational opportunities were around) , and made millions without having to deal with tenants

Sharingmyintelligencewiththedumbasses says

If you'd bought a house the day you started this blog, you'd be sitting on half a million in equity in your town.

Unless he has been doing stupid things with his savings, he is sitting on half a million in liquid equity due the capital gains of that house downpayment money + extra savings.

9   Sharingmyintelligencewiththedumbasses   2016 Sep 11, 5:21pm  

FP says

or even better: consulted with me, invested his equity (saved from not buying a house) aggressively in the stock market (generational opportunities were around) , and made millions without having to deal with tenants

Not mutually exclusive, and not even close...

Had he put 10% in 2008-2010, That would have grown 10 fold by now in terms of his equity...

your making shit up to think anything in the stock market has done even close...

Please register to comment:

api   best comments   contact   latest images   memes   one year ago   random   suggestions