Here's another side effect to the foreclosure crisis -- the cost of rentals is rising. Check an AOL article here. As more people lose their homes and have to rent, and as more renters wait for home prices to drop, rental unit inventory drops and rental rates rise. The statistics are frightening: a prediction of 5% rise overall, with some markets, like San Francisco, going up much, much more.
Ok, you just lost all credibility. You are justifying your prediction based on an article in USA Today? Um, Um, this "paper" is bought and paid for in the most obvious and offensive ways. Quotes by NAR to support the contentions of the article?
ReplyDeleteNope, what is happening is that vacancies are increasing, on the aggregate, nationwide, and concessions are becoming more available. The only people that submit their vacany and rental info are the large institutional owners and managers, and they lie. We moved out of the nicest complex in the west valley a couple of years ago when they kept upping rent as units emptied. Now they are throwing 2 months rent free out and have sign flippers trying to lure people in. Drive through the valley and check out the vacancy signs on nearly every building. They're trying to present a certain face and many are buying it because, hey, it makes sense,right? Lots of foreclosures, recession -- apartments must be filling up. Nope. As with previous recessions, vacancies are rising and actual rents are dropping.
Couldn't agree more with the comment. I haven't driven through the valley in quite a while so i was actually shocked to see how many for rent signs were out. Also, i recently checked out westsiderentals.com to find concessions are nearly every post in Sherman Oaks and Studio City.
ReplyDeleteI agree with the other two posters..
ReplyDeleteFOR RENT signs are now everywhere in SFV. I keep tabs because my wife and I are wanting to rent a house when our lease is up.
Many new aptarment and townhouses are going up (started during the boom) and many will finish being built this summer. Especially in Woodland Hills and Reseda. (amazing amount of buildling going on!)
The townhouse that I live in, for example, have already lowered their rate just a few months ago by a couple of hundred dollars per month on simliar units!
Now there are huge signs on the townhome complex I live in.
The economy is tanking. Gas and food prices going up. Seems like folks are actually packing up and leaving California.
Well, this isn't a bad thing. It's actually good as house prices continue to drop people might actually be able to afford buying a house in the next 3 to 4 years).
It's a correction that must take place. We should all hope that it happens faster and sooner rather than later..