It seems that rents will keep rising, but how much more can tenants tolerate? Will the newcomers pay whatever it takes?
Jim Klinge
Klinge Realty Group
Broker-Associate, Compass
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I think we’re close to peak, if not there already.
Realistically we’re at the point where even two incomes are stretched for modest rents. California economy actually lost jobs last month.
If you have ever listed a rental property you will know, that there is intense demand currently. I usually get 25-40 emails daily asking for a showing. With more house holds forming, and little to no building, this number will likely rise in San Diego. We live in a gig economy, jobs are more temporary than ever, this will again fuel the rental mindset as it enables more freedom of movement for jobs.
As a homeowner, those numbers begin to give me pause.
“If you have ever listed a rental property you will know, that there is intense demand currently. I usually get 25-40 emails daily asking for a showing.”
Same here in LA county. I put up a listing, and I get swarmed, even though our rents are at all time highs for us, and our area. Rented in two weeks. We have another rental coming up, and I’m not looking forward to the process.
Used to be a relaxed process. Now it’s kind of intense. Recently, one guy said, “if you rent to me, I’ll give you this right now,” and held out a big wad of hundred dollar bills. He wasn’t offering it as part of the security deposit. I said, “just so you know, you’re supposed to bribe the manager, not the landlord.”
We didn’t rent to him.
I bought through Jim back in September, but my previous residence was a very nice detached townhouse in Renaissance area of UTC. My rent was $2720. The rent advertised on CL as I was moving out was $3650. Maybe the landlord wasn’t that sad to see me go after all.
The lack of housing is now seriously affecting hiring for companies at least on the coasts. So companies have either one of two choices, 1. Trying to hire remote candidates 2. Try to poach other local candidates. Either scenario coupled with the competitiveness in housing may finally lead to wage growth…which would feed higher home pricing/rents.
Incog! You bought just in the nick of time!
I can’t think of another time when buying a home was so driven by rising rents, and also a relief from the rent!
As high as prices are, the low rates are keeping the payments attractive, compared to rents.
Exactly Jim. My next issue is going to be figuring out how in the hell I move up. Quite the cost gap even with all the money I dropped into flipping this unit.
Is “detached townhouse” the same as single family home?