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Thread: San Diego rentals on the rise

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    Default San Diego rentals on the rise

    Found this article after I watched the news segment.

    Mostly this recent rise is due to the slowing housing market in which less people are looking to buy such overpriced homes in the city. The 95% occupancy are college kids moving back home for school looking for places to live. Plus, people have alot more time in the winter to do things they have been planning all year long.

    I keep wondering when the increases on home prices and rentals will be over or at least cool off. I posted a thread a while back and it seemed that rental prices are cheaper in the winter as many people arent looking to move in the "winter" (what winter? its Socal). I guess when/if I move again it will be then.

    Anyone have any other explanations or conjectures about this matter?
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    Default Re: San Diego rentals on the rise

    the 'talking heads' are speculating that rental prices will only continue to increase as more and more marginally financed homeowners (ARMS, re-fis with little equity etc.) are forced into foreclosure, thus dumping more empty houses on the local real estate market and increasing local demand for rental properties. The more 'bubble' oriented the local real estate valuations, and the more marginal the homeowner financing (ARM's, re-fi's with little equity etc.) the more likely this is to occur. Most areas of California are very 'bubble' oriented in terms of real estate valuations, and with market pricing actually falling in some areas this further increases the probability of home foreclosures and evictions, thus further increasing the demand for rental units.

    Where future California pricing is concerned, speculation has it that real estate valuations will back off another 15%, but that rental prices will continue to rise to whatever levels the market will bear.
    ~
    Last edited by Melonie; 07-22-2006 at 04:54 AM.

  3. #3
    madmaxine
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    Default Re: San Diego rentals on the rise

    Several months ago I read there was money problems with the city adminstration of San Diego....cities in CA have a bad habit of taking the cost of government mistakes out of citizen taxpayer pockets...could be one reason, SD doesn't look like a good place to settle.

    Another factor could be people connected to the Navy in town picking up & leaving due to the dismal-looking future for that branch (I bet Army funding has improved ahead of all other branches, since the current President loves starting land wars.)

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    Default Re: San Diego rentals on the rise

    Hmm this gets me thinking if there is any way a renter can protect themselves against rental increases while currently renting.

    In San Diego there is no such this as rent controlled properties. Although in California being in a lease agreement can guarantee you that certain amount of rent to not increase during that time. They have to let you know at least 30-60 days in advance depending on how much they are going to increase it. Theres a bit more to that but the rest of the information is here.

    Is there anything I can do to keep myself locked in the rent Im currently paying? I really wonder how long this increase in living costs can go on in CA?<<edit: oops, just read you guys answered that last one.

    Just a bit more: Maybe it will become a home buyers market again with rent increases on the rise.
    Last edited by TigersMilk; 07-22-2006 at 05:09 AM. Reason: edited
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    Default Re: San Diego rentals on the rise

    San Diego just spends more than it makes. Sure put a new airport in near Del Mar and new football stadium only 15 miles away from Qualcom stadium...money is just flowing out of SD's ass. *sarcasm*

    With this news Im considering moving out of the county when I finish junior college. Just keeping the options open.
    you live like an ivy vine
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  6. #6
    madmaxine
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    Default Re: San Diego rentals on the rise

    You should rent from a private citizen, not an apartment complex. Or, rent from a relative, if possible.

    The cost of living in California is one of the reasons my fine ass will be living the Mountain Time Zone. Are you staying for school? If so, you could have cheaper rent on the merit of being a student- some universities have housing assistance programs.

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    Default Re: San Diego rentals on the rise

    Thanks for the information madmaxine. I'll have to look into that as I will still be renting saving for a house somewhere.

    Yes, Im staying for school. Only 2 years left of junior college! I cant believe it still.
    you live like an ivy vine
    you can only survive by clinging onto trees
    that's your flaw
    put down some roots so you can stand on your own
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  8. #8
    madmaxine
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    Default Re: San Diego rentals on the rise

    If you can't get housing help through the school, then check the paper for rooms/ duplexes for rent near the school- most of the houses near my local JC are full of students because it's the only college in the area & it's cheaper to live next to school than commute there.

    This will make you sad- I met a woman in Idaho (formerly of central CA) whose sister & brother-in-law are living on such a tight budget (both work full-time) in MODESTO that they can only run their appliances at night & they are dipping into savings to afford having a new baby..... The local paper surveyed the area & claims that is the situation for the average family in non-metropolitan CA, the cost of home ownership with this cost of living is making whole families live paycheck to paycheck.

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    Default Re: San Diego rentals on the rise

    In Modesto though in all places ..didnt think it would happen there? I only go to school 2 days a week all day right now. That is sad not even to afford the basics in life. Thats a great idea to live closer when Im going to add more days to my school schedule next semester.
    you live like an ivy vine
    you can only survive by clinging onto trees
    that's your flaw
    put down some roots so you can stand on your own
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  10. #10
    madmaxine
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    Default Re: San Diego rentals on the rise

    People can't believe what's going on here...some of the yuppies down the street are selling their McMansions, making a killing still & moving on to greener pastures (literally- Central CA is an irrigated desert)...

    The market bubble is bursting...but I don't see life becoming any easier up here. It hurts my heart to see the quiet place I grew up in being invaded by tacky suburban yuppies.

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    God/dess Deogol's Avatar
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    Default Re: San Diego rentals on the rise

    ^^^

    Tell me about it. A lot of Silly Con refuges are fleeing to Austin and driving the prices up.

    I think also, that it is not just the foreclosed upon who are driving up rents, but that we have finally reached the ceiling of who can qualify for massive debt for these houses. There just isn't anyone anymore - so instead of the american dream of home ownership - they rent.

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    Default Re: San Diego rentals on the rise

    People can't believe what's going on here...some of the yuppies down the street are selling their McMansions, making a killing still & moving on to greener pastures (literally- Central CA is an irrigated desert)...
    yup, and for every house that is sold there is one more house on the market that goes unsold or more likely is sold at a 'discount' ... thus lowering the assessed values of surrounding houses.

    San Diego just spends more than it makes. Sure put a new airport in near Del Mar and new football stadium only 15 miles away from Qualcom stadium...money is just flowing out of SD's ass.
    ... and with every extra dollar spent by local govt's there needs to be a property tax increase to pay for it eventually.

    If you put two and two together, you'll find the local gov't raising property tax assessments across the board to cover their gov't spending. However, when the gov't raises tax assessments 10% but single family home market prices go down 10% the gov't doesn't collect any more tax money. So who makes up the difference ??? Commercial property owners i.e. apartment buildings whose assessed values go up 10% plus property taxes go up 10% to boot. End result, rents must be raised for the apartment building owner to break even on the higher cost of property taxes.

    Hmm this gets me thinking if there is any way a renter can protect themselves against rental increases while currently renting.
    the best you're likely to find is to 'postpone the inevitable' by signing a one year lease with a fixed price for rent. After the bitter experience with gov't mandated rent controls in the Northeast, I doubt that California would ever be stupid enough to enact it there.

    Rent controls of 20-30 years ago resulted in apartment bldg landlords simply walking away from their properties and taking a total loss on the property value, because it was ultimately cheaper for them to go bankrupt than to be slowly bled to death by being forced to operate at a loss month after month with controlled rent receipts not equalling the actual cost of taxes + maintenance + mortgage payments. This in turn led to unsightly unsafe condemned buildings lowering adjacent property values, forced eviction of the former tenants due to health and safety code violations, permanent loss of X number of apartments in the city, and a whole lot of new homeless people that the city had to care for at public expense, plus the condemned unsafe vacant apartment buildings that no longer paid property taxes to the city and eventually had to be demolished at gov't expense !

    Tell me about it. A lot of Silly Con refuges are fleeing to Austin and driving the prices up
    just wait until California politicians figure out that all of those ex-Silicon Valley middle class tech workers who used to pay 8%+ income tax to the state of California are gone, gone, gone ... and replaced by 'recent immigrants' who pay essentially no state taxes but consume gov't funded services like crazy. If the state can't tax incomes it has no choice but to tax property instead, which translates into rising costs for homeowners and rising rents for taxpayers and 'recent immigrants' alike.

    Well, that's not totally accurate ... state and local gov'ts also have the option of jacking up sales taxes, which also translates into rising prices for homeowners, middle class workers who remain, and 'recent immigrants' alike. This is what happened in NY (my combined sales tax rate is 9.5%) and what just happened in NJ.
    Last edited by Melonie; 07-22-2006 at 10:10 AM.

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    Default Re: San Diego rentals on the rise

    and they say that a picture is worth a thousand words ...

    .

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    Default Re: San Diego rentals on the rise

    The most flabbergasting thing is that people are stupid enough to pay $800,000 for a house that was built 70 years ago, has 2 bedrooms and 1 bath.

    I feel sorry for anyone who lives in the CA/NY/FL area. It's going to be really hard for a lot of people just to find a home they can afford (it's hard now, but nothing like it will be). The housing bubble will burst...but that just means that a bunch of homes will go to foreclosure...funny how the new Chpt 7 law went into effect so quickly and recently, eh?

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    Default Re: San Diego rentals on the rise

    funny how the new Chpt 7 law went into effect so quickly and recently, eh?
    What an amazing coincidence LOL ! Of course it's wackoism to think that there actually might be powerful behind the scenes forces at work that can and do manipulate financial markets for their own reasons - or in this case to transfer potential future losses away from the big financial institutions and onto the property owners who were 'seduced' into putting themselves in a vulnerable position by those very financial institutions in the first place (i.e. ARM's, zero down payments, interest only loans etc.) ! Unfortunately, not only are these shaky homeowners going to take their lumps, but the ripple effects through the US economy are going to force everybody else to take some lumps as well. An obvious group who is going to see quick and direct ripple effect is renters !

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    Default Re: San Diego rentals on the rise

    (Thanks for all the interesting input)

    I was just reading on down payments and zero downs.....

    Now after starting to understand the housing market along with mortages, etc...this is one huge mess. Screw buying that 800,000 house thats really worth about 50-60% less. I was reading how people let the real estate agents, loan officers and mortage brokers let decisions be made for them. This is what happens when you let other think for you; such as, buying that house you very well know you cant afford. I really doubt this area will change any time soon *sigh*
    you live like an ivy vine
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    Default Re: San Diego rentals on the rise

    ^^^ oh, it's going to change soon - no doubt about that ! The whole business model which has allowed people of questionable financial means to obtain cheap credit with little or no down payment requirement is the root cause of houses that are realistically worth $400k being recently purchased for $800k was arguably established by the real estate and banking industry for their own benefit. After all, the higher the selling price, the higher the commissions and the more interest that must be paid. Now that credit standards are tightening and interest rates are rising, it's only a matter of time before 'realism' returns to housing prices and the real estate industry falls on its collective ass.

    You can also blame supposedly well-intentioned state lawmakers who excluded people's houses from the effects of bankruptcy proceedings - and supposedly well-intentioned federal lawmakers who established bankruptcy laws that allowed people to essentially borrow all of the money that they could find approved credit for, then walk away from their debts (and in many cases hang onto the house they bought but didn't pay for) ... and then start all over again 3 year later - with laws on the books that actually required lenders to extend credit to formerly bankrupt persons to avoid claims of discrimination !

    When the gov't encourages financial irresponsibility by removing the 'pain' associated with being financially irresponsible, and in some cases making financial irresponsibility a profitable enterprise (like buying a million dollar McMansion in Florida, going bankrupt, keeping the house, and then selling it 3 years later and pocketing the profit) it's hard to blame people for being financially irresponsible ! If you look on the property 'bubble' map I posted and do a little research, you'll find that the vast majority of 'bubble' areas also had laws which partially or fully shielded homes from foreclosure and shielded homeowners from eviction in bankruptcy - a remarkable coincidence !

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    Default Re: San Diego rentals on the rise

    Quote Originally Posted by TigersMilk
    (Thanks for all the interesting input)

    I was just reading on down payments and zero downs.....

    Now after starting to understand the housing market along with mortages, etc...this is one huge mess. Screw buying that 800,000 house thats really worth about 50-60% less. I was reading how people let the real estate agents, loan officers and mortage brokers let decisions be made for them. This is what happens when you let other think for you; such as, buying that house you very well know you cant afford. I really doubt this area will change any time soon *sigh*
    Actually, those $800,000 homes are really worth (national average) about $250,000...

    Yes, it will change soon. And, then the rental market is going to be sooooo hard because you'll have a huge influx of new renters and only x amount of places to be rented. The housing bubbles go in cycles and if a current owner can easily afford their $800,000 house and holds on to it through the burst...they will most likely see a profit when they sell it years and years and years from now.

    The only real winners in this game, were the people like my grandmother who bought her modest little house for $30,000 and sold it for $650,000. Like I said...people tend to be pretty moronic.

  19. #19
    madmaxine
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    Default Re: San Diego rentals on the rise

    There's another "scam" going on in California- the way housing is zoned. The law is slanted against condos & rent control so the cities & counties can collect maximum property taxes from people who live in the average single family dwelling- more people owning houses= fat tax revenue. People are also prohibited from renting out flats above business (at least in my area) even though it would provide badly needed affordable housing...well, why would the government want to REALLY help people? There's no payoff for them.

    PS Re: beware of your real estate agent-a large portion of "Freakonomics" by Steven Levitt & Stephen Dubner is devoted to how brokers can work against you in a home sale.

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    Default Re: San Diego rentals on the rise

    ^^^

    California is just a mess in so many ways. You were smart to move outta there.

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    Default Re: San Diego rentals on the rise

    California is just a mess in so many ways
    ... and Californians haven't even seen the worst effects yet of economic changes that have already been set in motion. Just think of how much past California state income tax revenue has already moved out of the state i.e. former Silicon Valley workers, and how much potential new California social program benefit costs have moved into the state i.e. 'recent immigrants' ! In that sense, New York is 10 years ahead of where California is presently at, and tends to prove the old adage that the rich only get richer, the poor only get poorer, and the middle class get the hell out if they want to 'keep what they've already got' !

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