patrick.net

Rents are up markedly -- 5%-10% range -- for a specific classification of rentals (which I know well being a renter in that classification). Those are "fence-sitter" rentals. Exclusively SFHs, usually 2500+sqft, and big enough to accommodate families that have sold out of similar homes and wish to rent equivalency (so as to not store/sell furniture, keep pets, room for kids, etc.)

One could find 4BR SFHs to rent in south Marin in early 05 for about $3500/mo. It is difficult to find anything now for under $4500/mo; and even those are usually of low quality. Newer McMansion homes are renting for well over $5K now.

The squeeze now is that, as rents in this category continue to climb, but rents of condos & apt bldgs don't, at what point does it make sense to just sell most of your furniture and rent a couple of adjacent units in a bldg? As of July it was still slightly better to pay the SFH rent for us.

Randy,

I think there will be some lagging supply issues in those segments. That traditionally been a small market (many going as bridging homes for short term contractors or new move ins intent on buying) so any uptick in demand is quickly going to constrain supply. However, given that renting is still only 1/3 or 1/2 of the ownership costs for the same properties, rent will probably go up for this segment.

I think unless the apartment or condo option is much cheaper than SFH, it's still better to go SFH for families. Noisy upstairs neighbors and lack of parking is a constant challenge for apt living, and most of the places are not child friendly and in lackluster locations. And if you're dealing with individual condo landlords, one refusal to renew/foreclosure can force you to move all over again.

I've been seeing 10-15% rent increases in tri-valley apartments this year. As late as 14 months ago, my boyfriend got first month free as a move-in bonus to his current apartment. When he looked into renewal v. another move this year, the equivalents were renting $100 to $150 more than last year and no move in bonuses in sight. He ended up staying put for about 8% increase and no renewal bonus.

In the long run I think this segment is vulnerable to softening rents in time since the renters are more flexible and substitutes are easier to come by. But right now, people are getting squeezed in this segment too.

My boyfriend mentioned that he hopes his noisy upstairs neighbors will move due to the uptick in rents.

Me: But you're living in one of the cheapest nice apartment in the area! ABF: yeah, but maybe they'll move to Tracey or Livermore to save $150 or $200 a month.
Me: Gas?
ABF: Most people don't think about that when they sign a lease.

Casey Serin says:
I misused my ambition.

is that like misunderestimation? (yeah, i had to bring up GWB, as though we don't have enough problems already...)

I have damaged my reputation and I have damaged many good relationships through this. I never meant to hurt anyone. So to stop any further damage I am shutting down and laying low.

and my posts never got out of his moderation queue :cry:

the 'being nice' thread didn't last long -- is that a sign of the times?