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San Francisco that Rents Dropped 29% to Multiyear Low. But They Haven’t Dropped Nearly Enough Yet


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2021 Feb 25, 9:52pm   632 views  21 comments

by Patrick   ➕follow (55)   💰tip   ignore  

https://www.nakedcapitalism.com/2021/02/why-its-good-for-san-francisco-that-rents-dropped-29-to-multiyear-low-but-they-havent-dropped-nearly-enough-yet.html

The breath-taking downward spiral of the median asking rent of one-bedroom apartments continued in February, dropping to $2,650 a month, the lowest in years, down 24% from a year ago and down 29% from June 2019:



... I understand that property owners – landlords and homeowners both – want property prices to only surge. Because it’s just money, and getting rich off this surge is the name of the game.

But then out of the other side of their mouth, in a deafening hypocrisy, they bemoan in a politically correct manner the “Housing Crisis” and they lobby for taxpayers or developers to subsidize a few “affordable” housing units.

Housing costs are a leech on the economy. What people spend on rent and mortgage payments in San Francisco cannot be spent on other things – the lucky ones that can even afford to live in San Francisco and haven’t been driven out yet by high costs. ...

Small businesses have trouble hiring because the people who work in kitchens and shops cannot afford to live in the city. $20 an hour in San Francisco is very tough to get by on. But businesses cannot pay higher wages – unless they’re serving the very high end of the market – because their potential customers are squeezed dry by housing costs and cannot spend the money to sustain those businesses. ...

You get the idea: Money spent on housing goes to Wall Street, banks, investors, mega landlords and their investors, and small mom-and-pop landlords, from where it goes to the banks, Wall Street, and their investors. Housing has been completely financialized and every aspect has been turned into a global financial asset class.

Sure, some work is done to repair and maintain the rental properties from time to time – replacing a roof, painting, etc. – which boosts the local economy a little. But there’s not a lot of it, and the workers live elsewhere and car-pool into the City because they cannot afford to live in the City, and so they won’t spend their money in the city, except for a sandwich if they forgot to bring their lunch. ...

The solution is to let the market correct this bizarre phenomenon of rents (and more broadly, housing costs) strangulating the City. The Federal Reserve could help by ending its asset purchases and by raising short-term interest rates at tad. This would speed up that process of curing the City of the Housing Crisis.


Right, like the Fed is going to do anything to help make housing cheaper.

Comments 1 - 21 of 21        Search these comments

1   Ceffer   2021 Feb 26, 6:08am  

Santa Cruz is going up and up with fire refugees and work at home refugees:
https://www.zillow.com/homedetails/237-21st-Ave-Santa-Cruz-CA-95062/16126260_zpid/?
2.5 million for 1790 sq. ft.

Cracks me up, they made a garage an extension and put windows in the garage door that can still be opened:


2   BayArea   2021 Feb 26, 6:28am  

Cratering amazing
3   clambo   2021 Feb 26, 6:58am  

Ceffer, that’s a nice garage.
I had some illegal alien friends down in Castroville who lived in a garage.
It was full of bunk beds for the guys from Mexico.
I met a guy at McDonalds who made $250/6 hours delivering food to the shut in nerds around Santa Cruz.
4   zzyzzx   2021 Feb 26, 7:13am  

Fuck San Francisco!
5   Ceffer   2021 Feb 26, 7:14am  

clambo says
Ceffer, that’s a nice garage.
I had some illegal alien friends down in Castroville who lived in a garage.
It was full of bunk beds for the guys from Mexico.


House on corner across street from our little hood has a bracero safe house/hotel/hostel. They must stack them up in there, the place is always surrounded by ten to fifteen vehicles. i think they might also rent some of the vehicles to the illegal workers. They must have strict rules, place is pretty quiet for the number of bodies passing through. There are two overweight Mexican women who come and go in a Nissan Rogue, who I presume may be doing a variety of 'outsourcing' services of the gummy gland variety. Once in a rare while, somebody gets drunk and stumbles around outside, but they really keep a lid on them.

There is a flower vendor on the corner by the park. White vans pick him up and drop him off. I can't see how they make money enough doing that, but then I saw a guy from the area passing money and taking a packet. The vendor looks very nervous and doesn't respond if I wave to him in passing during a walk, so I presume that he is part of a drug sales network.

From talks with people I know, social services are also involved in distribution to those shut ins who have regular checks coming in. The 'civil servants' take their social services pay checks and conduct business on the side. A neighbor saw a social service worker with a stolen car who visits a known drug abuser down the street, and was foolish enough to get involved, and got a nasty, threatening call from the social service worker's relative who works in the police department. Drugs corrupt everything.
6   B.A.C.A.H.   2021 Feb 26, 1:42pm  

HunterTits says
Patrick says
the lucky ones that...live in San Francisco


Ok, that right there destroys the author's entire credibility in my view, despite the fact that he's otherwise correct.


Dude, you conveniently omitted some key words that Wolf wrote:

Patrick says
the lucky ones that can even afford to live in San Francisco


He's saying they're lucky to have the resources to afford it. Not lucky to live there. If you follow his blog and read all the words you will know that he writes with sarcasm and tongue in cheek.

Are you here in the Snarkey-Smug Bay Area?
7   SunnyvaleCA   2021 Feb 26, 1:57pm  

Ceffer says
Cracks me up, they made a garage an extension and put windows in the garage door that can still be opened:
You can order your garage door just like that. Most people order a top row of windows and all the other rows solid. Funny thing is, unless they got permits for that, that's a blatant violation of building code. Oh well. It actually look like a good idea! Big windows when you want and open air when you want to feel the ocean breeze.

In my neighborhood, most of the 2-car garages have at most one car (and a lot of junk). Many 2-car garages are 100% full of junk and have two cars parked in the driveway. My shack has a (non permitted) natural-gas furnace built into the wall and shows marks where there was obviously tile placed over the concrete floor. Furnace was disconnect and tile already removed before I moved in. I only have one car, and it lives in the garage, so I have the only empty driveway on the entire street.
8   B.A.C.A.H.   2021 Mar 3, 3:01pm  

A quote from http://housingbubble.blog/?p=4517

From Bisnow Silicon Valley in California. “Postal service change-of-address data indicates a net migration of 53,000 households out of S.F. from March to November in 2020 compared to 17,000 in 2019, S.F. Chronicle reported. The migration resulted in steep drops in apartment rents in S.F. ‘The threat is — and it’s a serious one — if we don’t solve the housing problem, affordable and worker housing, I believe we are headed toward becoming a Detroit,’ Santa Clara County Assessor Larry Stone said.”

Party On, Hipsters.
9   Ceffer   2021 Mar 3, 3:09pm  

Drove to Monterey the other day for some walkabout and outdoor eating with wife and friend. Not a single homeless person, tent, etc. seen the whole day. So, what is it that they do that Santa Cruz doesn't. Like, maybe enforce the laws?
10   mell   2021 Mar 3, 4:14pm  

HunterTits says
B.A.C.A.H. says
Dude, you conveniently omitted some key words that Wolf wrote:


I deliberately omitted them because they are not what matters, DUDE.

B.A.C.A.H. says
He's saying they're lucky to have the resources to afford it. Not lucky to live there


See? You contradict yourself just like he did.

It sucks to live in SF, period. No matter whether you can afford it or not. Sucks even more if you live there but can not afford it, too.

SF is just a grander version of Port-au-Prince, Haiti.

B.A.C.A.H. says
Are you here in the Snarkey-Smug Bay Area?


Yes, while that asshole lives in NY (another shitsville). Which means I know SF is a shit-show by personal experience.


Why don't you move? SF used to be a great city, it always had a dirt problem but it was overall managed and crime low. Plenty of great areas outside the bay area. At least for wfh folks that shlould be the obvious choice.
11   B.A.C.A.H.   2021 Mar 3, 5:42pm  

mell says
Why don't you move?

I don't live in SF. I live in San Jose.

I've seen many homeless people on the streets in my city, like SF.

Why don't I move? Lived here (in the same zip code) since before starting school. My adult kids, siblings, nieces, nephews, parents, all my inlaws, and many friends (*) are in the area. That's a strong pull, and a choice to stay.

Doesn't mean we won't leave if things get miserable enough. It's always an option. The Reno area, with no state income tax (at least at present) beckons.

For the time being, we stay. It's a choice. We won't blame anyone nor whine like we're victims.

(*) most of my homie friends from K-12 are long gone though!
12   mell   2021 Mar 3, 5:45pm  

B.A.C.A.H. says
mell says
Why don't you move?

I don't live in SF. I live in San Jose.

I've seen many homeless people on the streets in my city, like SF.

Why don't I move? Lived here (in the same zip code) since before starting school. My adult kids, siblings, nieces, nephews, parents, all my inlaws, and many friends (*) are in the area. That's a strong pull, and a choice to stay.

Doesn't mean we won't leave if things get miserable enough. It's always an option. The Reno area, with no state income tax (at least at present) beckons.

For the time being, we stay. It's a choice. We won't blame anyone nor whine like we're victims.

(*) most of my homie friends from K-12 are long gone though!


I get it, it was addressed to HunterTits. Family is always a good reason.
13   Patrick   2021 Mar 3, 6:12pm  

Ceffer says
2.5 million for 1790 sq. ft.


Thing is, it is about a block from the beach. That's huge.
14   Booger   2021 Mar 4, 6:49pm  

https://thepostmillennial.com/reporter-robbed-at-gunpoint-while-filming-a-story-on-theft-in-crime-ridden-san-francisco

Reporter robbed at gunpoint while filming a story on theft in crime ridden San Francisco
15   Patrick   2021 Mar 4, 7:34pm  

I bet it's real.

The fake news is usually about imaginary "white supremacists", and this was almost certainly black guys with guns once again (you can tell because they don't mention the race when the assailants are black).

Also, same thing happened to a news crew in Oakland not that long ago.

More references to this event:
https://news.yahoo.com/kpix-5-reporter-robbed-gunpoint-022128571.html
https://www.sfgate.com/news/bayarea/article/Tv-News-Reporter-Robbed-Of-Camera-At-Gunpoint-On-15999066.php
https://www.msn.com/en-us/news/crime/san-francisco-reporter-robbed-of-his-camera-at-gunpoint/ar-BB1efUIA
16   mell   2021 Mar 4, 9:00pm  

HunterTits says
mell says
Why don't you move? SF used to be a great city, it always had a dirt problem but it was overall managed and crime low. Plenty of great areas outside the bay area. At least for wfh folks that shlould be the obvious choice.


I don't live in SF. Never said that I did.

I live in the Bay Area. Live in Fremont, was born in Mountain View and grew up in San Jose. I am a Bay Area NATIVE BORN. <-- not too many of those these days, eh?

Downtown SJ used to be a real shithole. Back in the 70s and early 80s. They did a good job cleaning it up.

SF has been nothing but a shit show with some interesting tourist attractions and nice titty bars. But otherwise, it is shitsville.


I agree that SJ is cleaner but I don't like it, it lacks character and is a sprawl. SF was a fun city and still livable until a few years after the crash, when traffic douchebags and hobos alike returned and it completely lost its grip on basic cleanliness and safety. Would not want to miss those years, but with the transition from a libertarian left leaning to full on leftoid retard woke sjw city government it's days were numbered a while ago. But it takes even leftists a few years if not a decade to destroy a city. And Covid was just the final nail in the coffin. It will take a while for it to reset and come out of this given they change their politics, maybe another decade.
17   HeadSet   2021 Mar 5, 5:36am  

Patrick says
Ceffer says
2.5 million for 1790 sq. ft.


Thing is, it is about a block from the beach. That's huge.

In Virginia, waterfront property does carry a premium, but "one block from the beach" might as well be one mile from the beach as pertaining to land value.
18   EBGuy   2021 Mar 5, 12:49pm  

In the words of the late, great Bob Marley, Exodus: movement of jah people!
From SFGate:
In the second through fourth quarters of 2020, exits from San Francisco “were 31% higher than during the same period in 2019.” New entrances were 21% lower, the study said. Net exits from San Francisco in the last nine months of 2020 increased nearly 650% compared with the same period in 2019 — from 5,200 net exits to 38,800.
...
The number of people leaving California typically tracks with the amount entering the state. But the findings show that wasn’t the case in the fourth quarter of 2020, when 267,000 people left the state and only 128,000 entered.
19   HeadSet   2021 Mar 6, 6:42am  

San Francisco that Rents Dropped 29% to Multiyear Low. But They Haven’t Dropped Nearly Enough Yet

Because of "Covid" layoffs, haven't rents already dropped to "free?"
20   Patrick   2021 Mar 9, 5:41pm  

Patrick says
I bet it's real.

The fake news is usually about imaginary "white supremacists", and this was almost certainly black guys with guns once again (you can tell because they don't mention the race when the assailants are black).

Also, same thing happened to a news crew in Oakland not that long ago.


https://sfist.com/2021/03/09/arrest-made-in-armed-robbery-of-kpix-reporters-camera-at-twin-peaks/

The San Francisco Police Department on Tuesday released a few more details about last week's armed robbery of a KPIX crew's camera at Twin Peaks — which, ironically, was stolen while the reporter was there to report on all the theft going on in the area.

As we learned last week, the camera had been recovered by police, but they did not clarify how or where that happened, or that anyone had been arrested. Now, in a release, the SFPD says they arrested 34-year-old Ronald Whitten of San Francisco in connection with the robbery, shortly after the robbery occurred last Wednesday.

"Through the course of the investigation an adult male was arrested on the 200 block of Randolph Street at approximately 2:00 PM," the SFPD says. "During the arrest the stolen camera was located and seized by the officers."

KPIX explains that the camera had a tracking device on it, which led police directly to the suspect — though it sounds like only one arrest was made, and reporter Don Ford had said that three suspects approached him and his cameraman, one of them with a Glock pistol aimed at his head.
21   B.A.C.A.H.   2021 Mar 10, 11:04am  

mell says
transition from a libertarian left leaning to full on leftoid retard woke sjw city government it's days were numbered a while ago. But it takes even leftists a few years if not a decade to destroy a city.


I am fairly certain the traffic ticket I got in the Mission in 2013 was a scam akin to a speed trap involving an SFPD car parked at the curb, a busy intersection with bumper to bumper traffic, and a crossing guard in front of an elementary school. Whatever. Learned my lesson. And no, I was neither curb walking nor looking for drugs.

The young policeman who wrote the ticket had a partner cop who stayed in the patrol car, no doubt watching for more clueless victims (partner cop, not a "partner"). The citation writer was a friendly sort. I asked him if he could help me with directions. To the UC dental school. "There's a dental school?". Near the US Mint. "Sorry, I don't know where that is." On Buchanan Street (note to reader: Buchanan is a major street). "Sir, I'm sorry. We just joined the force recently and we don't live in the city. We can't help you find where you're looking for."

The best he could do was point me in the direction of Market Street.

The recent hires in the SFPD are mercenaries with no connection to the community they police.

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