patrick.net

mdiablo says

Facebooksux says

Fluff piece from housing shills.

I live in corporate owned complex. Rent went up a lot last year but "only" about 5% this year. Lots of complexes are now offering a month or more free.

Lots? Not in Mountain View or anywhere near it would be my guess. Just did a quick search and only saw one offering a month free and that was on a $2895 1x1 at a lease-up property. That's an effective rent of $2654 - not exactly cheap for a 1x1.

I do think rents are close to peaking with 1000's of new units set to come online over the next two years. But they are still increasing in most areas. Rents at my properties in SV are up about 10% over last year.

Should have been a bit more specific. Not exactly in MV, but just at the northern border with Los Altos/PA.

What I'm seeing personally is a lot of young, skilled professionals and DINKs taking jobs in the city and competing for the limited supply. We finally have some real construction (I walk by that 1190 building almost every day) but it's just not there yet. Meanwhile, folks in rent-controlled units are essentially squatting in a city they can no longer afford.

The wage growth is there, but it seems to be mostly "new" wages. I job-hopped this year for a 22% raise.

Anecdotal, but that's what I see.

I hope our incomes rise as fast. Do they expect people to pay higher and higher percentages of income on housing?

The logical conclusion of some comments here and suggestions is either everyone other than employees with stock benefits in companies with growing stock prices(and those living on interest on investments of course) moves out of San Francisco or a whole lot more apartments get built.

FunTime says

everyone other than employees with stock benefits in companies with growing
stock prices(and those living on interest on investments of course) moves out of
San Francisco or a whole lot more apartments get built.

Or more people start shacking up. There is no reason why a 600sqft 2x1 can't accomodate 6 roommates.

Philistine says

FunTime says

everyone other than employees with stock benefits in companies with growing
stock prices(and those living on interest on investments of course) moves out of
San Francisco or a whole lot more apartments get built.

Or more people start shacking up. There is no reason why a 600sqft 2x1 can't accomodate 6 roommates.

If that happens, the soviets won the cold war without firing a single shot!

dublin hillz says

If that happens, the soviets won the cold war without firing a single shot!

People are free. Adapt. Move to Union City and save big.
Time to gentrify the east bay.

Heraclitusstudent says

dublin hillz says

If that happens, the soviets won the cold war without firing a single shot!

People are free. Adapt. Move to Union City and save big.
Time to gentrify the east bay.

Union city does offer free entertainment of gangbangers being arrested on friday night by century 25 in union landing. A must see for sure!

dublin hillz says

Union city does offer free entertainment of gangbangers being arrested on friday night by century 25 in union landing. A must see for sure!

One has to live within ones means.

Take the jump. And say "Thank you Ben" for the wealth effect.

I was hit with an 8% increase last year in my complex. I just got another letter last week that said they were raising my rent another 8% this year and doubling all other fees like pet rent, garage spaces and stuff. This on top of the month to month premium increasing from 200 to 400 extra per month.

I really gotta get out of this complex but housing is just too fubar'd for me to purchase anything unless I was to eat top ramen every meal to buy a 500k "teardown" property.

Gragorin says

I was hit with an 8% increase last year in my complex. I just got another letter last week that said they were raising my rent another 8% this year and doubling all other fees like pet rent, garage spaces and stuff. This on top of the month to month premium increasing from 200 to 400 extra per month.

I really gotta get out of this complex but housing is just too fubar'd for me to purchase anything unless I was to eat top ramen every meal to buy a 500k "teardown" property.

That does suck. The only option is to relocate to a cheaper area. Is this an option for you?

Gragorin says

I was hit with an 8% increase last year in my complex. I just got another letter last week that said they were raising my rent another 8% this year and doubling all other fees like pet rent, garage spaces and stuff. This on top of the month to month premium increasing from 200 to 400 extra per month.

I really gotta get out of this complex but housing is just too fubar'd for me to purchase anything unless I was to eat top ramen every meal to buy a 500k "teardown" property.

That's one of the main reasons to buy when buy vs rent ratios are reasonable - lock in the housing costs. I received my first substantial raise earlier this year since I bought a house. A raise that felt like it's supposed to vs earlier in my life as a renter where the raise would basically be jacked by the landlord or even worse when a raise in rent could exceed it.

What goes up must come down.

I'm sort of glad I don't live in the bay area though, sounds like it is crazy expensive out there. Sadly explains armies of homeless out there.

I went through 2 rent increases, but the last one was just over the top, so I left a message asking them if they really thought losing a loyal tenant was worth it. They called back with an offer back down to what I was originally paying--about $600 less p/m than what they were going for. If you don't say anything, you are guaranteed to get screwed.

I was hit with an 8% increase last year in my complex. I just got another letter last week that said they were raising my rent another 8% this year and doubling all other fees like pet rent, garage spaces and stuff. This on top of the month to month premium increasing from 200 to 400 extra per month.

FortWayne says

Sadly explains armies of homeless out there.

No, the armies of homeless come for the benefits and the weather. Look it up. Some cities were sending their homeless to SF.

rufita11 says

No, the armies of homeless come for the benefits and the weather. Look it up. Some cities were sending their homeless to SF.

People move to SF for the weather? Suckers.

dublin hillz says

tatupu70 says

thomaswong.1986 says

..
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LOL! the renters/homeowner employer wont be making any salary increases to cover for higher rents... be they in Stockton or Mt View.

Really? They got their salary increases last year...

San Francisco-Oakland-Mateo, Calif.

> 1-yr. wage growth: 24.7%

> Average weekly wage: $1,706

> Dec. 2011 unemployment: 7.2%

> Dec. 2012 unemployment: 6.1%

> 1-yr. employment change: +4.1%

http://finance.yahoo.com/news/american-cities-where-wages-are-soaring-172506054.html?page=2

This is skewed by the exercise of stock options which disproportionally benefits the technocrat class.

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Nada.. more likely all owners of small business/partnerships.. those are the rich.

a typical SV engineer has a caped Salary limit....

business owners have no limit on earnings.. they might be Doctors/Lawyers/CPAs/Retailers/Consultants...

the days of stock options wealth are long long gone.. the vast number of high valuations among many companies are no long around (see late 1999 for that).

Moderate Infidel says

rufita11 says

No, the armies of homeless come for the benefits and the weather. Look it up. Some cities were sending their homeless to SF.

People move to SF for the weather? Suckers.

Your more likely to get nice weather in So San Jose - Fremont ..

Yes,, SF is a joke.. it more likely to be cold as heck even in the summer.
Many times you cant get good sun light.. due to the fog.

Watch those arms buddy, I hear those az renters get troublesome this time a year.

robertoaribas says

FortWayne says

What goes up must come down.

Yes. No doubt, I will be able to buy a nice tract home in Orlando for $2000 just like my mother did.

After all, as the very astute FortWayne says, "what goes up must come down"

It isn't like he is a complete moron or something, so I trust what he says is true. I should be able to get a good cuban cigar for a dime quite soon too!

Last time I was in San Francisco it was sad to see it. Streets are nice, but you turn the corner and there are many homeless. It's not good for us all.

rufita11 says

FortWayne says

Sadly explains armies of homeless out there.

No, the armies of homeless come for the benefits and the weather. Look it up. Some cities were sending their homeless to SF.

thomaswong.1986 says

Moderate Infidel says

rufita11 says

No, the armies of homeless come for the benefits and the weather. Look it up. Some cities were sending their homeless to SF.

People move to SF for the weather? Suckers.

Your more likely to get nice weather in So San Jose - Fremont ..

Yes,, SF is a joke.. it more likely to be cold as heck even in the summer.

Many times you cant get good sun light.. due to the fog.

Have you been to Minnesota in the summer or winter. Death from exposure is a lot less likely in a city with only one season. Especially, when that city offers a lot of benefits for the homeless.

FortWayne says

Last time I was in San Francisco it was sad to see it. Streets are nice, but you turn the corner and there are many homeless. It's not good for us all.

rufita11 says

FortWayne says

Sadly explains armies of homeless out there.

No, the armies of homeless come for the benefits and the weather. Look it up. Some cities were sending their homeless to SF.

A friend of mine was visiting from Norway in 2009 and she looked in her rearview only to see a homeless person squatting in traffic and taking a dump. She couldn't believe it. A lot had changed since her last visit in '89

What town?

Boston is probably comparable to SF in traffic, green areas, and density.

Cheaper housing and food, I'd agree with.

The summers can also get very hot and humid, I'd probably say there are 4 "wonderful" months out of the year.

rufita11 says

Especially, when that city offers a lot of benefits for the homeless.

When foreign companies engage in the equivalent practice, they call it "dumping"...

New Renter says

Gragorin says

I was hit with an 8% increase last year in my complex. I just got another letter last week that said they were raising my rent another 8% this year and doubling all other fees like pet rent, garage spaces and stuff. This on top of the month to month premium increasing from 200 to 400 extra per month.

I really gotta get out of this complex but housing is just too fubar'd for me to purchase anything unless I was to eat top ramen every meal to buy a 500k "teardown" property.

That does suck. The only option is to relocate to a cheaper area. Is this an option for you?

It's not really feasible for me to move really for a couple of reasons. I'm in the medical field so it would be very easy for me to find a job anywhere in the US BUT I'm already vested in my pension so I don't want to change employers and start over.

I could always move over the hill or to the east bay / Central Valley but I like this area and want to keep a short commute.

A cheaper area could also be a cheaper neighborhood in the same area.

rufita11 says

FortWayne says

Last time I was in San Francisco it was sad to see it. Streets are nice, but you turn the corner and there are many homeless. It's not good for us all.

rufita11 says

FortWayne says

Sadly explains armies of homeless out there.

No, the armies of homeless come for the benefits and the weather. Look it up. Some cities were sending their homeless to SF.

A friend of mine was visiting from Norway in 2009 and she looked in her rearview only to see a homeless person squatting in traffic and taking a dump. She couldn't believe it. A lot had changed since her last visit in '89

Yes like home prices tripling despite the bounty of publicly deficating homeless.

Maybe the excrement of the homeless is the secret fertilizer for the housing market.

New Renter says

Yes like home prices tripling despite the bounty of publicly deficating
homeless.

Maybe the excrement of the homeless is the secret fertilizer for the housing
market.

The locals paying $4.50 for a pound of organic peaches in the ferry building while the homeless are nearby on market street must be a huge boost to self esteem lol

donjumpsuit says

I just got back from my home town in Massachusetts (I live in the Bay Area Currently).

Maybe you misunderstood, but my response is about why homeless people choose SF over other cities. Not about balls and guts and snow.

rufita11 says

Maybe you misunderstood, but my response is about why homeless people choose SF over other cities. Not about balls and guts and snow.

The city pays out cash to homeless people.. so now many from out of state flocked to SF. along with the drug dealers and crack/heroin pipeline.

Thank goodness high inflation hasn't been possible since Reagan was elected, or I'd say these people's cost of living is going up TOO much.

To be fair it depends on the neighborhood. Certain neighborhood rents in SF have been relatively steady or only increased slightly, such as sunset, outer sunset, parkside and other decent (but not hip) neighborhoods.

Don't worry the money that Feds printed is coming back to US from other countries. This will fuck more middle class here in US. Buckle up, it is going to be a bumpy ride. Upside is that the rich is going to get even richer.

The worst part about s.f is walking down market street, looking at the $3500 studios, and realizing the city actually smells homeless...

FortWayne says

Streets are nice, but you turn the corner and there are many homeless.

Yes, the cities where they displace the homeless people instead of trying to deal with root problems are much nicer. How nice. Imagine cities that look like Disneyland! How nice.
Maybe if you just close your eyes most of the time, you won't see the unpleasant things in the world? How nice. Unpleasant things in the world are so sad! Let's all agree to ignore them or just comment to other people how unpleasant they are in a voice of disgust for those inferior. All those drug problems and mental health issues. Why they're almost as bad as our aging parents!

Don't see any rent increase in my world. Same rent the last 2 years. Now renting for 1/3 the cost of ownership in my last calculations. I'm hoping to get to 1/4 in a few years! ;) Bring it on baby. Up Up Up! It'll just make the crash that much more spectacular! I love fireworks.

dublin hillz says

That's one of the main reasons to buy when buy vs rent ratios are reasonable - lock in the housing costs.

I don't know how anyone could believe that. How are house maintenance costs ever locked-in? Unless you mean you lock in the mortgage payment. That's only part of the costs of owning a house though. The argument of locked-in costs is much better for renting. House owning costs, especially maintenance and improvements, are incredibly variable as far as I can tell.

RentingForHalfTheCost says

Don't see any rent increase in my world. Same rent the last 2 years. Now renting for 1/3 the cost of ownership in my last calculations. I'm hoping to get to 1/4 in a few years! ;) Bring it on baby. Up Up Up! It'll just make the crash that much more spectacular! I love fireworks.

Well, probably because you never compare apples to apples in your calculations...

FunTime says

dublin hillz says

That's one of the main reasons to buy when buy vs rent ratios are reasonable - lock in the housing costs.

I don't know how anyone could believe that. How are house maintenance costs ever locked-in? Unless you mean you lock in the mortgage payment. That's only part of the costs of owning a house though. The argument of locked-in costs is much better for renting. House owning costs, especially maintenance and improvements, are incredibly variable as far as I can tell.

Maintenance costs are not really that unpredictable especially if you have HOA which covers exterior repairs and building insurance, groundskeeping, etc. Since I purchased, my HOA did not go up, actually went down by a few bucks a month compared to year 1.

dublin hillz says

Maintenance costs are not really that unpredictable especially if you have HOA which covers exterior repairs and building insurance, groundskeeping, etc.

Oh, okay. I get that. So HOA can help fix the unpredictable costs.

I was thinking more of the kind of costs I hear neighbors discuss or that my landlord has paid. New roof, new windows, new furnace, new hot water heater, repairs maintenance due to hot water heater leaking contents onto floor and flooding adjacent carpeted room etc, etc.

FunTime says

dublin hillz says

Maintenance costs are not really that unpredictable especially if you have HOA which covers exterior repairs and building insurance, groundskeeping, etc.

Oh, okay. I get that. So HOA can help fix the unpredictable costs.

I was thinking more of the kind of costs I hear neighbors discuss or that my landlord has paid. New roof, new windows, new furnace, new hot water heater, repairs maintenance due to hot water heater leaking contents onto floor and flooding adjacent carpeted room etc, etc.

Some of these issues are also dependent upon what kind of property is purchased. If someone purchases a resale the risk that these issues will need to be addressed sooner rather than later and exponentially greater compared to purchasing new construction from a reputable builder. Modern buildings also have much better insulation and windows compared to the "quality" of the past where you might as well be sleeping on the sidewalk lol