Low-End Rents Are At Least Doubled Now
A weekend topic on rents and the housing bubble starting with the Kansas City Star. “Trendy new apartment towers and historic building conversions in downtown Kansas City are in the limelight, but the metro area has experienced a quieter — and no less significant — boom in apartment complex construction throughout the city and suburbs. About 3,000 new residential units are in the works for the city’s core. At least that many units opened last year alone in just the largest new metrowide apartment developments. This surge, particularly in upscale and ‘lifestyle’ complexes, mirrors a national trend toward amenity-rich apartments.”
“Apartment developer Dana Gibson raises an important point about the development surge: ‘We do need to diversify our product. We can’t price ourselves above the budgets of the restaurant and back-office workers who are priced out of the market if average rents get too high.’”
“In fact, low-end rental rates also have surged in the last couple of years, and a recent national study showed that affordability is a big stumbling block. Low-end rates of $350 a month a few years ago are at least doubled now, and even that isn’t enough to entice developers to build ‘affordable’ multifamily housing. Sufficient returns on investment come from higher-end properties.”
“The preponderance of high-end apartment developments, like the area’s 10 biggest developments completed last year, could make for luxury-level vacancies if rent increases continue to outpace wage growth. ‘The imbalance of households who can afford a luxury rental in comparison to the number of luxury projects currently under construction or planned’ could be a concern, said Daniel Kann with Valbridge Property Advisors in Overland Park. ‘The affordable renter segment is much larger in terms of population and is being overlooked in terms of new construction.’”
Boston.com in Massachusetts. “Maybe all the cheerleading for more new apartment and condo construction is paying off after all. The Boston area saw a 42 percent increase in the number of building permits issued in 2015 for new apartments and condos, according to CMD Construction Data. More multifamily units were cleared for takeoff last year than in any year since at least 2000, beating out the last peak year of 2005. The surge in new construction comes with the Boston area in the throes of a major housing shortage that has driven rents and prices to ever higher levels.”
“Builders putting up new condo and apartment projects took out permits for 10,400 new units last year, CMD reports. That blows past the previous peak of 9,100 new building permits set in 2005. The Boston area came in fourth last year in the number of building permits issued for multifamily units, with only New York, Miami and Dallas posting higher numbers. New York more than doubled the number of apartment and building permits it issues last year, to 75,000. Miami’s numbers rose to 16,000, up from 10,000 in 2015, while Dallas notched a 54 percent increase, awarding 28,000 building permits last year for new apartments and condos, according to CMD.”
The Independent Record in Montana. “Missoula has a serious housing affordability problem and it’s a seller’s market right now, according to the Missoula Organization of Realtors’ 2016 Housing Report. Median family incomes in Missoula range from $43,560 for a single person to $62,220 for four people, but it would take an income of more than $80,000 to afford a median-priced home with a 4 percent down payment, according to the report.”
“It is generally accepted that no more than 30 percent of a household’s gross monthly income should go toward housing costs, according to Jim McGrath of the Missoula Housing Authority. Only 27.2 percent of Missoula homeowners are in that position, but 54.3 percent of renters spend more than a third of their income on housing. In Missoula, renters make up 52 percent of all occupants. ‘If you have to pay more than that, you have less for transportation, education, food, savings — those kinds of things,’ he said. ‘That’s an industry standard.’”
“To purchase a home without having to also pay mortgage insurance, buyers must also come up with a 20 percent down payment, McGrath said. ‘In Missoula, a lot of people are not providing a 20 percent down,’ he said.”
“Paul Burow of Professional Property Management said that the average cost of rent increased for nearly every type of unit in Missoula in 2015. ‘The No. 2 question I get asked is if rent prices are ever going to come down or stabilize,’ he explained. ‘The answer is, ‘I doubt it.’ The average cost for a one-bedroom apartment in Missoula is $664 per month, according to data collected from 27,000 units over the course of a year. A two-bedroom apartment costs $767. ‘Everything getting built now is in that $900 to $1,100 range, so that raises the average price,’ he noted.”
The Los Angeles Times in California. “Looking to cash in on a booming real estate market, Los Angeles property owners are demolishing an increasing number of rent-controlled buildings to build pricey McMansions, condos and new rentals, leading to hundreds of evictions across the city. More than 1,000 rent-controlled apartments were taken off the market last year — a nearly threefold increase since 2013, according to a Times analysis of housing data. Evictions from such units have doubled over the same time.”
“Across L.A., more than 20,000 rent-controlled units have been taken off the market since 2001, city records show. The removals peaked during the housing bubble and then bottomed out in the recession, but they have risen significantly since then. Many of the recent evictions have been carried out by developers who have purchased the buildings with the intention of demolishing them to construct pricier housing. At least 51% of the L.A. properties removed under the Ellis Act in 2013 had been purchased within the previous year, according to a Times analysis.”
“Los Angeles officials are also investigating claims that some landlords are evicting tenants to convert apartments into illegal short-terms rentals, such as Airbnb.”
Fox 5 San Diego in California. “According to a Rentonomics 2016 National Apartment List Rent Report, rents nationwide have risen significantly over the past year and continue to go up. San Diego is shown as 11th highest on the list of most cost-burdened renters. As home prices and the cost of rent continue to climb, working-class families are struggling to keep pace and many are slipping into poverty.
“In San Diego County, more than one in five residents, or about 23 percent of the population, lived in poverty, according to the report, which looked at a variety of living costs, including filling up the gas tank, food and healthcare. On average, rent is costing people 75 percent or more of what they get paid.”
The Argus Courier in California. “A report from mortgage research firm HSH ranked the San Francisco metro area, which includes the North Bay, as 4th on a nationwide list of housing markets that have recovered the most. The survey showed that the Bay Area’s housing market is 41 percent above its peak value before the bubble burst. Factored heavily into that statistic, however, is the emergence of the tech industry and abundance of high-paying jobs. But those not involved in the tech industry — teachers, firefighters, nurses and other laborers — have watched as housing costs have risen much faster than median wages, forcing many to look for housing outside of Petaluma.”
“That reality was brought into focus recently as eight Petaluma families were served eviction notices at their Walnut Street apartment complex. The tenants said a new owner raised their rents by about $700 shortly after buying the apartment complex in mid-December. Tenants were then served 60-day notices to vacate their apartments on Feb. 2, even if they were willing to pay the higher rent. The move underscores a growing trend in the local resurgent housing market, where investors have been snapping up apartment buildings and raising rents.”
“‘We are seeing unprecedented wipeouts of low-income tenant complexes — often substandard, and often immigrant-occupied,’ said Ronit Rubinoff, executive director of Legal Aid of Sonoma County, a program that offers free legal advice to renters. ‘Tenants are being turned out all at once in order to raise rents and in many cases, people are being issued eviction notices on top of huge rent increases.’”
“Rents have climbed 40 percent in the past four years, according to Real Answers, a Novato real estate research firm.”
‘Last summer, the Urban Institute issued a report on housing affordability across the United States. The central finding is shocking: There is no county in the United States that has enough affordable housing to meet the needs of its poor renters—not one.’
Is 15 people living in a 3 bedroom house (at govt expense) considered affordable?
Apparently the Fed’s housing price reflation program has been a tremendous success.
The “progressives” used to be anti war and in favor of affordable houses. Now they support a guy who every Tuesday signs orders for the assassination of various people via drones, and they support artificial price support of boring stucco boxes. The neoconservatives support forcing people to pay for health insurance (Romneycare), the Federal Reserve, and fiat money. It all makes sense that these two groups who comically are driven to fight each other actually agree with each other. They are for big government, authoritarianism.
Grumble.
‘This surge, particularly in upscale and ‘lifestyle’ complexes, mirrors a national trend toward amenity-rich apartments…low-end rental rates also have surged in the last couple of years…Low-end rates of $350 a month a few years ago are at least doubled now, and even that isn’t enough to entice developers to build ‘affordable’ multifamily housing’
You might ask, “so Ben, are you saying the government is allowing or causing all these poor people to suffer higher rents?” That’s exactly what I’m saying. It’s like Oliver Stone said, Obama is a snake. Same with Bernanke, Yellen, Mel Watt and Eric Holder. This is what foaming the runway for banks is about. Just read the San Diego article with the woman living in her car. This is all about power and money.
“But won’t it all collapse?”
Sure, they don’t care about that. Just get them past the next election and they’ll use the next “crisis” to throw a few trillion bucks at their buddies. There isn’t any aspect of the housing bubble that is more revealing about the powers that be than this low income rental situation.
‘A recent report by the Office of the Comptroller of the Currency, a federal agency that regulates the nation’s banks, warns that declines in mortgage underwriting standards are mirroring pre-crisis trends.
‘Underwriting standards eased at a significant number of banks for the three-year period from 2013 through 2015,’ the report said. ‘This trend reflects broad trends similar to those experienced from 2005 through 2007, before the most recent financial crisis.’ Not since 2006, it noted, have lenders taken on so much credit risk, and it says the hazard will continue to grow this year: ‘Examiners expect the level of credit risk to increase over the next 12 months.’
‘A large chunk of the risk is coming from first-time home buyers with shaky credit and so-called ‘rebound’ buyers who previously defaulted on home loans. The demand from otherwise uncreditworthy home buyers ‘is driving home prices up faster than incomes and inflation,’ noted Edward Pinto, co-director of AEI’s International Center on Housing Risk in Washington.’
‘This is especially true in hot spots like California, where subprime-mortgage lenders offering interest-only loans with no FICO-score requirements are cropping up from the ashes of Countrywide Financial, the bankrupt subprime giant.’
‘In another sign housing is overheating, home ‘flipping’ is red hot again and hitting levels not seen since just prior to the mortgage meltdown. Nationwide, almost 180,000 homes were sold and then resold last year — the highest level since 2007. In fact, according to RealtyTrac, flipping in a dozen metro areas — including New York, Los Angeles, San Diego, Miami and Jacksonville, Fla. — exceeded peaks set in 2005.’
‘Like the last bubble, this one is fueled by artificial demand from government-induced lax lending standards and accommodative interest rates set by the Federal Reserve. Today’s relaxation in mortgage-underwriting standards is largely a function of government housing-policy changes at FHA, Fannie Mae and Freddie Mac, which dominate the nation’s mortgage activity. As in the last easy-credit cycle, we are seeing ‘the promotion of policy to push firms to seek riskier products to promote growth,’ Wells Fargo Chief Economist John Silvia said.’
‘All three agencies have slashed down-payment and other requirements under pressure from Obama regulators, who include, most significantly, former Congressional Black Caucus leader and Obama appointee Mel Watt, head of the new Federal Housing Finance Agency, which now controls Fannie Mae and Freddie Mac.’
‘Last year, Fannie Mae launched a new subprime-mortgage product called HomeReady that caters to recent immigrants with weak credit and limited income. The new loan program, which offers ‘income flexibility,’ allows borrowers for the first time to bundle income from roommates and relatives to meet qualifications for income. They only have to put 3% down, and can use gifts from nonprofit groups to subsidize their down payments.’
‘There is no limit on the number of non-borrower household members who can be present on a single transaction,’ Fannie advises originators. And even then there is ’documentation flexibility,’ a frightening echo of last decade’s ‘no-doc loans.’
‘You don’t have to show personal financial independence. You can be maxed out on credit cards and even live in government-subsidized housing. Just as long as you round up enough income-earners and pool finances to help meet a debt-to-income ratio of up to 50%. And you don’t need good credit. ‘If the borrower’s credit score is less than the minimum credit score required,’ Fannie tells loan underwriters, ‘the lender may develop an acceptable nontraditional credit profile’ that takes into consideration timely payments on electricity bills and car insurance — and even gym dues — in lieu of payments on credit cards and loans.’
‘Under HomeReady, you can even qualify for a ‘cash-out refinance’ of your mortgage, a type of loan that led to over-leveraging and a wave of defaults during the mortgage crisis.’
‘Why would Fannie offer the same kinds of poorly underwritten loans that forced it into bankruptcy? Because HomeReady aligns ‘with our housing goals’ set by Watt, it says in its HomeReady literature. It’s all part of a government campaign to ease access to home loans for recent Hispanic immigrants — including those living here illegally. In fact, HomeReady caters to illegal immigrants by allowing borrowers to waive Social Security documentation.’
‘Watt, who as a congressman once demanded Freddie Mac back loans for welfare recipients in his North Carolina district, has instructed Fannie and Freddie to come up with ‘alternative credit-scoring models’ to FICO and approve more home buyers. ‘We have the pedal to the metal’ on adopting a new model, Watt said.’
http://thehousingbubbleblog.com/?p=9573
“The demand from otherwise uncreditworthy home buyers ‘is driving home prices up faster than incomes and inflation,’ noted Edward Pinto, co-director of AEI’s International Center on Housing Risk in Washington.”
“driving home prices up faster than incomes and inflation” does what? Why, it produces wealth, that’s what.
Wealth in the form of equity, equity created due to rising prices, rising prices due to the actions of strangers, strangers who may or may not be creditworthy.
Their actions produce my wealth. The crazier their actions the greater my wealth - the greater my David Lereah-type wealth.
As this continues to go on and on more and more David Lereah one-hundred dollar bills are added to my mattress.
I can’t wait for tomorrow because I become richer every day.
The Age of Miracles is at hand.
“driving home prices up faster than incomes and inflation” does what? Why, it produces wealth, that’s what.
It produces wealth for those who stand to profit from every transaction—e.g. the origination pipeline, aka banksters.
It also temporarily grants “liquidity” rather than wealth, to those who borrow against their artificial equity gains.
And in the end, it produces poverty for those who fell into the trap. Unless they are able to game the system, transferring their losses onto the taxpayers, and taking advantage of years of rent-free living.
‘A recent report by the Office of the Comptroller of the Currency, a federal agency that regulates the nation’s banks, warns that declines in mortgage underwriting standards are mirroring pre-crisis trends.’
The report frames this development as though it’s some kind of grass-root movement by lenders instead of a deliberate top-down policy coming straight out of Mel Watt’s office.
“As long as there is such a disconnect, where a couple like my wife and me have to put down a gargantuan down payment and still have a large monthly payment to get into a decent, and not necessarily nice, house, that is a game we don’t wish to play,” said Mr. Austin, a 39-year-old business manager at a biotechnology company. “When home price-to-income levels come back to a more normal level, when that happens, then we will be the first to jump in. If that never happens, that is O.K.”
http://mobile.nytimes.com/2016/04/02/your-money/to-buy-or-rent-a-home-weighing-which-is-better.html
Gargantuan down payment? Where’s that? Who is doing that? Isn’t 3.5 percent the standard and lots of ways to get it down below that?
I think Mr. Austin’s point was that even with a large down payment the monthly nut was unbearable.
3.5. percent of the $600,000 price tag for a California starter home is $21,000, which I guarantee is a deal-breaker for the vast majority of college debt-strapped starter households.
Plus closing costs
Plus depreciation racking up at $2.50/square foot per year every year you own it.
You might ask, “so Ben, are you saying the government is allowing or causing all these poor people to suffer higher rents?” That’s exactly what I’m saying.
God’s chosen gaming-up people’s “basic needs.”
More like Satan’s chosen.
Exactly Colorado…What would Jesus say….I have often said here that investors do not belong in the SFR market place…It distorts the valuations due to the competitive forces that they inflict…They also drive up rents….There are many ways that we could restrict them but we choose not to…
Everyone who bought a house expecting the price of it (or local rents) to continue to go up is a speculator.
Arguably everyone who buys a house is speculating that it will give them a better return than renting.
And plugging the numbers help. We have a $550 mo accrual to live in our home for ins and property taxes. We bought in the 4th qtr of 2012, when there was a dip in these overinflated markets. I feel bad for young’ins staring out. A basic home in my neighborhood is $500-$550, and these are starter homes in So Ca. Insanity.
Regarding low rent apts, the Low Income Housing Tax Credit sector is booming. Rents are insanely high. That is why you need a paid off home for retirement.
Rents may be high but they’re half the cost of buying. Ignoring this results in MT Pockets and is the very reason your pockets are MT.
“Just get them past the next election and they’ll use the next “crisis” to throw a few trillion bucks at their buddies”
This is a good month for stacking more gold and platinum. Behind the oatmeal.
Printing fiat eventually leads to high inflation. Combo, please convince me that printing more fiat leads to deflation. I would like a URL.
I predict a quarter ounce of gold per month will more than cover my rent after I retire.
Ben Jones what a depressing collection of articles, and a welcome reminder that I’m so happy I don’t live in California. And now for some good news:
http://www.bizjournals.com/denver/news/2016/03/31/denver-rents-expected-to-cool-off-in-2016.html
California: The Welfare Capital Of The US
http://www.sandiegouniontribune.com/news/2012/jul/28/welfare-capital-of-the-us/
Again, boundaries are artificial. This “welfare capital” concept is of a collectivist mindset. Gullible people take your post and automatically assume it is homogeneous. In reality the central San Joaquin Valley, high desert areas, parts of the in,and empire, and desolate northeastern California are dense with welfare. The other areas have very high standards of living. Just as you cannot paint all Californians as authoritarian anti gun types.
There are more rednecks in California than any other state… mostly in the central valley, but quite a few in the less populous coastal areas.
If you can afford it, the coastal areas are very nice places to live. If not, you’re either a hobo or forced into the valley, which might as well be Nevada as far as quality of life goes.
Don’t be poor, and you won’t have to live among the poors.
Your definition of poor is someone with nothing. The actual definition of poor is negative net worth. That would be nearly every single person within 25 miles of water in CA.
Believing that is obviously central to your sense of self worth. It’s just kind of sad to see someone expend so much effort distorting reality and none on improving their situation.
The definition is what it is irrespective of your or my belief.
Cheeze and crackers, Housing Analyst, stop having conversations with yourself online. Please seek professional help.
Data my friend. Stick with the data.
Mercer Island, WA Housing Prices Crater 11% YoY As Seattle Economy Stalls
http://www.zillow.com/mercer-island-wa/home-values/
HA posts under many names, but I think you are wrong if you are suggesting that he is also The Central Scrutinizer.
But I’m conflicted! I need to talk this out, and I need an audience!
Now I’m senior housing analyst?
lolz
Now _that’s_ funny, Jake. Yes, from what I can tell from the posting style, you are.
But I am Central Scrutinizer.
You are not, *I* am!
And I’m Polly
I’m every poster here, and I’m starting to think I might be Ben, too.
Ben is actually in a mental institution, telling the doctors about his imaginary friend with multiple personalities that keeps junking up his real estate blog.
Blog Moderation: Not Even Once
“I might be Ben, too.”
No you’re just Lola.
No you’re just Lola.
I would say that. I’m so self-critical.
It’s called OCD Lola.
The self doubt of this hive mind.
It’s a great place to live if a) you don’t have to work at a job that requires you to get into the traffic; b) you have no kids that need schooling now or in the future; c) you are established enough to have housing costs from before 1998; AND d) you do not have to come into contact with the massive amount of poor, homeless and illegals.
OR if you are rich or a state teat sucker with an unearned scam windfall pension.
It’s easy to see why some are so mad there also.
Even as a single childless renter in my section of OC (in the foothills south of Irvine), I enjoy rent payments that are one third the PITI of my primarily SFH neighbors. Remember, loan ownership is a religion in California (since prop 13). If I was smart, I would have invested whatever I could into OC RE in the late 70s after prop 13 when I was barely 20 years old. RE is the Californian way of saying EFF u to the Franchise Tax Board. Instead I am in the 28% tax bracket and paying higher taxes on purpose to Roth 401k so that I will be in a far lower tax bracket on retirement.
Nice couple of post Bill…Some here who do not live in California but speak of it with prejudice reek on envy…
on = of
Dave I’ve lived in Californica. The notion that it’s not a crime ridden welfare state is a farce.
Been there, done that.
Life as a poor is like that wherever you go.
There’s no sense in complaining about being poor on the HBB. Get yourself together and develop a career. Nobody is going to do it for you.
It’s sad they don’t take time to improve their situation.
I lived there for many years. There were plenty of times you’d have been kicking yourself for buying. It’s all lucky timing plus now bubble economics views from the pre POP top.
It’s a cancer patient in remission and without the funny money it’s toast.
Well in my experience of buying in California, I bought in one of the worst locations at the worst time. A one company town in the high desert when BRACs forced defense companies out. I would have been much better off by buying a one bedroom condo apartment (ocean view) in Redondo Beach that year and just rent it out. But my $35,000 income in 1990 would not have allowed me to pay rent for myself in my tiny town.
Another heroin article:
“In 2014, St. Louis had the highest homicide rate of any city with more than 100,000 people. Its 157 homicides that year increased by 18 percent in 2015 to 188, and while the rate has slowed in the initial months of this year, St. Louis is again on pace to be among the nation’s most dangerous big cities.”
http://mobile.nytimes.com/2016/04/03/us/crime-spike-in-st-louis-traced-to-cheap-heroin-and-mexican-cartels.html?_r=0
PBS Frontline just did a pretty good episode on the heroin epidemic. Transcript: http://www.pbs.org/wgbh/frontline/film/chasing-heroin/transcript/
The crack cocaine epidemic made for much better narratives, and music, if you like hip hop. All this heroin is pretty boring, people just pass out and then some of them die.
They commit a massive amount of property crime to fuel their habits.
Hey Donk.
I have friends and family in the area. Most of them have relocated to the St. Charles (west) side of the Missouri River to avoid the black hole of crime and poverty that Detroit’s little brother, St.Louis, has become.
PS I will add that some of my ancestors owned and operated the iron works which supplied the metal for the bird cage in the St. Louis Zoo, part of the 1904 Louisiana Purchase Centennial Exhibition. This was long before St. Louis’s one-way descent into crime and poverty over the second half of the twentieth century. I’ll never forget the tears I saw well up in my grandmother’s eyes upon seeing a photo of her childhood home after it burned down. Many formerly nice residential areas of the city look like they were recently bombed.
All through that area, grand old houses falling to ruin. It’s incredibly depressing.
Ferguson bro,ferguson
Ferguson is St. Louis’s suburban cousin.
Yes, but what about East St. Louis? That makes the west side of the Mississippi look good by comparison.
True that. When I lived in the area, if I ever wanted to feel better about the plight of St. Louis, proper, I drove into East St. Louis, which made the west side of the river seem much better by comparison. I’ll never forget the experience of once showing up at a music gig in ESL, and noticing the rather conspicuous bullet holes in the glass around the front door of the building where we rehearsed.
And yet another crater, this one in Fairfax County, Virginia:
https://www.washingtonpost.com/local/virginia-news/this-model-of-wealthy-suburban-living-is-starting-to-fray/2016/04/02/e9ad0ace-f107-11e5-a61f-e9c95c06edca_story.html
Starting to fray? You don’t say
That tripping hazard in Elysium… hehe.
Gee, I wonder what happened in the past 15 years. Here are a couple hints:
——–
“That’s a tripping hazard,” Ortiz said in Spanish, pointing to the deteriorating court,
In county schools, which have added about 22,000 students since 2008, approximately 53,000 receive federally subsidized lunches. The number of pupils in need of English-language instruction has jumped 41 percent to nearly 32,000 — more than one-sixth of the system’s 187,000 students.
——–
http://thehousingbubbleblog.com/?p=9593
“The demand for apartments in Dallas-Fort Worth staggered in the first quarter of the year, with leasing velocity dropping more than a third compared with the first quarter of 2015, according to MPF Research, a division of RealPage Inc. The disappointing demand for apartments were seen throughout the country in early 2016, said RealPage Chief Economist Greg Willett. In North Texas, the first quarter showed a demand for 1,989 apartment units, which is roughly a third the absorption volume seen in the first quarter of 2015. Meanwhile, developers finished building 5,763 apartments in the initial three months of 2016.”
“‘New household just didn’t form at the pace normally supported by solid job expansion,” Willet said. ‘That slow rate of household creation likely reflects some concern about the near-term economic outlook.’”
“Parkway Corp. has carved its development niche amassing Center City property, building it up when the time is right. But it’s trying something new at the lot it owns at 20th and Arch Streets, which it is now looking to sell as undeveloped land. The shift comes amid concerns that Center City’s rising real estate values may be losing some momentum. Developers are due to complete more residential units in the area than would be filled under current growth rates, the Center City District business association said in a report.”
“That potential oversupply, combined with expected higher interest rates that would make financing projects more expensive, could conspire against the market, said Michael Silverman, a managing director at Integra Realty Resources in Philadelphia. ‘The music’s going to stop at some point,’ he said.
No “pent-up demand” for Chicago real estate happening here:
“Violence is occurring at levels unseen for years. In the first quarter of 2016, 141 people were killed, up from 82 last year, according to police department data. The number of shootings surged to 677 from 359 a year earlier. The city is on track to have more than 500 killings this year, which would make this just the third year since 2004 that Chicago topped that figure.”
https://www.washingtonpost.com/news/post-nation/wp/2016/04/02/chicagos-staggering-rise-in-gun-violence-and-killings/
Real journalists report Gen Xers most screwed on real estate:
“Xers, on the other hand, were mostly in their 30s and early 40s when the housing crisis hit — just old enough to have bought a house. By 2009, many of them found themselves either underwater on their mortgage, or in foreclosure and completely forced out of their home. Gen X was in the wrong place at the wrong time, economically speaking, and in many cases the consequences of that continue.”
http://m.huffpost.com/us/entry/us_56fad298e4b0143a9b497c9c
Weekly Standard hit piece on legalized marijuana, article title paraphrases the Chomsky book on propaganda, no “smaller government” happening here:
http://www.weeklystandard.com/manufacturing-consent-to-legal-marijuana/article/2001750
Another Jesus sighting, here in an Arizona fountain:
http://mobile.wnd.com/2016/04/jesus-image-seen-in-famous-arizona-fountain/?cat_orig=faith
A moving narrative, yes, and very lucrative to Sheldon Adelson…
Higher education bubble popping:
“Colleges and universities in general, though, have reason to worry about students not sticking around — or never showing up in the first place. The long post-World War II boom in higher education in the U.S. may finally be coming to an end.”
http://www.bloombergview.com/articles/2016-04-01/congratulations-class-of-2020-please-enroll
And it doesn’t help that men are skipping college in ever increasing numbers.
Simi Valley, CA Housing Market Implodes; Prices Crater 6% YoY As Declines Appear Statewide
http://www.zillow.com/simi-valley-ca-93063/home-values/
‘eight Petaluma families were served eviction notices at their Walnut Street apartment complex. The tenants said a new owner raised their rents by about $700 shortly after buying the apartment complex in mid-December. Tenants were then served 60-day notices to vacate their apartments on Feb. 2, even if they were willing to pay the higher rent. The move underscores a growing trend in the local resurgent housing market, where investors have been snapping up apartment buildings and raising rents’
It’s been happening all across the country:
‘As housing market soars, poorest renters are priced out’
‘A Seattle company bought the 118-unit complex in January and began displacing tenants in waves as it prepared to renovate rooms and increase rent. During a visit last month, residents in Turner’s block of apartments were awaiting 20-day termination notices. For Turner, eviction likely meant a return to her Toyota and the street.’
“I’m going to lose all this” she said. “It isn’t much, but it’s mine.”
‘The same upheaval taking place in apartments at Admiral Manor this spring is quietly playing out across Kitsap County as the economy gains strength and a long-slumbering real estate market roars back to life.’
‘Rents have surged. Vacancies are scarce. Once-cheap houses and apartment buildings like Admiral Manor are being renovated and rented at higher rates. Some federally subsidized developments have been converted to market-rate rentals, eating away at the county’s stockpile of affordable units. With a large pool of tenants to choose from, landlords are less likely to lease to low-income families, even when they have money for rent.’
“Rents have surged.”
A good thing; Surging rents, both actual and imputed, allow GDP to surge. Surging GDP is a sign of good economic health.
Love the surge.
“
Rentscrimes have surged.”You love the housing crime scourge?
Official: Santa Rosa woman facing eviction set herself ablaze
Santa Rosa Press Democrat-Mar 29, 2016
A desperate woman facing eviction from her south Santa Rosa apartment poured gasoline over her body Sunday evening, before setting a fire that nearly …
Ben…San Jose city council is taking up a rent control ordinance this month….
Petaluma certainly has a housing affordability issue. My sister lived there a few years in a nice loft but was forced out by higher costs and a job loss. She had a nice place north of San Anselmo but the landlords forced her out because they wanted to move back in). Now she is in a smaller place in San Rafael but more expensive. It is a big struggle. She is in the 28% bracket, but saved very little and spent a lot. Will be 62 in a year but when she is eligible for full social security she will certainly not afford to live in the good parts of California.
99% of California is bad.
‘Rents have surged. Vacancies are scarce. Once-cheap houses and apartment buildings like Admiral Manor are being renovated and rented at higher rates.
Thank the Federal Reserve, which is finally managing to achieve its long-sought goal of inflation in what you need. The poor will finally be made to pay the price for the banksters excesses.
Someone in a great post yesterday referred to this Fed-manufactured inflation as assflation (”asset inflation”).
“The poor will finally be made to pay the price for the banksters excesses.”
God’s Plan.
The poor will finally be made to pay the price for the banksters excesses.
What if we raise the minimum wage to $15/hr?
Another Lolaism.
Bothell, WA Housing Market Implodes; Prices Plunge 6% YoY As Economy Slows
http://www.zillow.com/bothell-wa-98011/home-values/
‘Earlier this week, I found a message on my answering machine from Amber Danielle-Rose Todd of the City of Oakland. According to her message there were 1,100 evictions filed with the Rent Stabilization Board from Jan. 2015 through Feb. 2016 in Oakland, and she also stated that around 100 evictions were filed during the month of March.’
‘This was in response to my March 24 “public records request” asking how many eviction notices were filed in Oakland during 2015 and 2016, with the rent board.’
‘In Oakland, there are many reasons that people are being threatened with eviction, and often the tenants are being threatened with unlawful evictions, even from so-called nonprofit housing developers commonly referred to as the “Housing Mafia”, by the attorneys who defend tenants in court against an eviction.’
‘As an example, despite being protected by Measure EE in Oakland, this week the East Bay Asian Local Development Corporation (EBALDC) threatened tenants with eviction (30 Day Notice) at one of their so-called affordable housing projects in East Oakland. The tenants in the 21 unit residential building were being threatened if they failed to sign a new lease that was materially different from their old lease.’
‘Among other things, the new lease states that EBALDC will no longer take payments from a third party except section 8 payments. It also mentions that there are minimum income requirements that exclude poor people from the housing project, and under section #5) the lease states that the tenants will be responsible to cover all the debts of the building by allowing EBALDC to charge higher rents.’
Does Section 8 subsidy simply go up to cover these rent increases?
“Does Section 8 subsidy simply go up to cover these rent increases?”
Apparently so. It appears that the subsidy is paid out in the form of a percentage.
Wikipedia …
“Under the voucher program, individuals or families with a voucher find and lease a unit (either in a specified complex or in the private sector) and pay a portion of the rent. Most households pay 30% of their adjusted income for Section 8 housing. Adjusted income is a household’s gross (total) income minus deductions for dependents under 18 years of age, full-time students, disabled persons, or an elderly household, and certain disability assistance and medical expenses.[9]“
Go here:
http://affordablehousingonline.com/open-section-8-waiting-lists
Flagstaff has an open waiting list.
Approval for Section 8 is pretty hard. I talked with a county person who said the waiting list is years.
“Most households pay 30% of their adjusted income for Section 8 housing.”
Some people without Section 8 pay up to 88% of their income for their housing.
Section 8 = A true asset, an extremely valuable asset, an asset that once it is obtained it should never be given up.
“Section 8 = A true asset, an extremely valuable asset, an asset that once it is obtained it should never be given up.”
Welfare for real estate developers.
It’s a huge scam for the landlords and the recipients. Massive fraud all around.
“I talked with a county person who said the waiting list is years.”
More Than 3,500 Michigan Lottery Winners Are Benefitting From Welfare: Government Report
04/17/2013 12:21 pm ET
That’s because there are some government assistance programs that don’t require asset testing, according to Michigan DHS.
Team: People With Six-Figure Incomes Living In Taxpayer-Subsidized Housing
By Ryan Kath, WBZ-TV October 14, 2015 11:13 PM
By Ryan Kath
BOSTON (CBS) – Like thousands of other low-income residents in Boston, Angelina Depina, 26, knows how tough it is to find an affordable place to live.
To qualify for subsidized public housing options, prospective tenants have to meet income restrictions. There is a lot of competition for a limited number of vacancies. In Boston, the waiting list has 38,000 applicants.
This Dorchester working mom was surprised to learn hundreds of families around the state are earning well above those income limits.
“I think it’s a smack in the face, honestly,” Depina said. “It’s really disgusting because there truly are individuals who are really struggling.”
At Orchard Gardens in Roxbury, one family of four reported a $228,000 income. At another development in Dorchester’s Mission Hill neighborhood, five different families brought in six-figure salaries.
“Is it fair? No, it’s not fair,” Depina said. “It might be legal, but it’s morally wrong.”
The families all met income guidelines when they applied for the program. The issue: since obtaining jobs and earning higher salaries, nobody from the housing authorities has told them to pack up and move into the private market.
Some Families Living in Philly Public Housing Earn Over $100K
By Mitch Blacher
Published at 6:59 PM EST on Nov 24, 2015
The Philadelphia Housing Authority has a 10 year waiting list with roughly 100,000 people on it, according to officials.
But while low income and homeless families wait, the NBC10 Investigators found some families were allowed to live in PHA properties while earning six figures.
Read more: http://www.nbcphiladelphia.com/news/local/Philadelphia-Housing-Authority-Over-Income-Families–353277881.html#ixzz44m3GctWr
Follow us: @nbcphiladelphia on Twitter | nbcphiladelphia on Facebook
The Philadelphia Housing Authority has a 10 year waiting list with roughly 100,000 people on it, according to officials.
Methinks that those at the end of the line will never get their grubby hands on a voucher.
Approval for Section 8 is pretty hard ??
Yes it is….Only so many dollars to go around….I have a friend that is a republican neocon to his core…He owns about a half dozen rentals…Duplexes mainly…100% of his tenants are Sec.#8…Go figure…
I should also add that once you got it its hard to lose it…
I know an Ivy League Liberal lawyer who has some rentals and he loves section 8 tenants for the guaranteed rent payments.
This is another one of those “establishment” issues with both/all sides with their hands in the cookie jar.
100% of his tenants are Sec.#8…Go figure…
+1, muhFeelins. Both sides love to benefit from the system, regardless of what their supposed beliefs would suggest.
Although, blaming someone for optimizing for the current system does strike me as similar to blaming someone for doing good tax planning; just because you advocate for a different tax system doesn’t mean you should want to be the only one paying more under the current system.
Are there fewer section 8 units available nationwide? Perhaps we’re watching gentrification at work. Urban areas once the domain of the poors are becoming the playgrounds of the rich, and section 8 housing will move from those areas to the areas where the poor end up- probably the exurbs.
Section 8 Mcmansions, coming soon.
WHITE CITY: THE NEW URBAN BLIGHT IS RICH PEOPLE
BY ALEXANDER NAZARYAN ON 4/2/16 AT 8:24 AM
Newsweek
… In the 14 years since Richard Florida published The Rise of the Creative Class, certain convictions have become religious dogma to the New Urbanist clan: that density is better than sprawl; that young people working on laptops in coffee shops is better than middle-aged people working in cubicles in office parks; that bikes are very good, while cars are very, very bad. That a dense city like Manhattan is, in fact, morally superior to a diffuse one like Dallas. It was Jane Jacobs all over again, only with Internet access and cask ales.
Many cities, in consequence, have…“loft districts” rising from industrial ashes in Cleveland and Raleigh, hipster enclaves in Chattanooga, a gayborhood in Philadelphia, reclaimed waterfronts in Baltimore and Minneapolis…
There is really only one strike against the New Urbanism, but it’s a strike thrown by Nolan Ryan: It turns cities into playgrounds for moneyed, childless whites while pushing out the poor, the working-class, immigrants, seniors and anyone else not plugged into “the knowledge economy.” Right around the time that Michael Bloomberg was remaking Manhattan as a hive for stateless billionaires, I saw a slogan that captured perfectly the new glimmer of the city: “New York: If you can make it here, you probably have a trust fund.”
http://www.newsweek.com/white-city-new-urban-blight-rich-people-443310
Doral, FL Housing Market Caves; Prices Dive 7% YoY As Vacation And Second Home Market Craters
http://www.zillow.com/doral-fl/home-values/
‘When people think of a time of devastating poverty in the United States, the Great Depression usually comes to mind. There was massive unemployment, widespread hunger and evictions. Those eviction numbers, though, are nowhere near what they are today.’
“We are evicting a lot more people now than we did during the Great Depression,” Matthew Desmond told MPR News host Tom Weber. In the 1930s and 40s, evictions could be counted in the hundreds. Now, Desmond said, they can be counted in the millions.’
‘Desmond’s new book, “Evicted: Poverty and Profit in the American City,” is arguably the most comprehensive study of eviction across the country. Desmond, a Harvard professor and a MacArthur Genius grant winner, embedded himself in low-income neighborhoods in Milwaukee, Wis., for more than a year to understand the emotional and economic impact that comes with losing your home.’
‘He stood on the street with Arlene, a single mother of two boys, in January’s freezing temperatures, trying to move her stuff before the sheriff arrived.’
“They would have given her two options: truck or curb,” Desmond said. “‘Truck’ means that her possessions would be taken by movers [who would bill her for storage], and ‘curb’ means that all of them are piled on the sidewalk, and I mean all of them: the mattresses, the food in the freezer, the shower curtain. It’s something that is a violent and very destabilizing event, and it’s something that happens a lot.”
‘That was just one of Arlene’s many evictions. “When I met Arlene, she was spending 88 percent of her income to live in a really run-down, two-bedroom apartment in a poor neighborhood in Milwaukee, which at the time was the fourth poorest city in the country,” Desmond said. “Under those conditions, evictions are not the result of irresponsibility as much as inevitability.”
88 percent of her income
Where is the father of Arlene’s children?
Elsewhere.
Hey bubba
“Where is the father of Arlene’s children?”
Planting his seed far and wide.
“Where is the father of Arlene’s children?”
Planting his seed far and wide.
AF/BB
Some nice, reliable Beta with a steady job should man up, put a ring on Arlene’s finger and help her raise her Alpha spawn. If she really likes him she might even bear one of his own.
Don’t be a betabux.
Just don’t.
“When I met Arlene, she was spending 88 percent of her income to live in a really run-down, two-bedroom apartment in a poor neighborhood in Milwaukee
Maybe she should have thought about getting a one-bedroom place that was a little cheaper, or living with a roommate? She should have known that that was way beyond her means.
‘One in four low-income families pays more than 70 percent of its income on rent, leaving little money for other bills and almost no room for an unexpected expense. According to the Harvard Research Center’s State of the Nation’s Housing report in 2015, rising rents and stagnating wages nationwide have contributed to a record number of cost-burdened renters — a situation that is worsened by the shortage of affordable housing for low-income tenants.’
‘Families often end up in areas with more crime and poorer-quality housing, Desmond adds. Limes says she is worried about that. She wants to move, but even studio apartments are $800 a month, which she can’t afford. “It’s like I’m stuck here. I don’t know where else to go. I don’t want to go to the shelter. I’m trying to get help. But I can’t find help anywhere,” she says.’
‘She did get some temporary aid from the city a few years ago, but permanent housing assistance is almost impossible to find. Limes applied eight years ago for housing vouchers to help cover her rent. “And nothing. I’m still what, 1,000 something,” she says.’
‘That’s No. 1,000 on the waiting list. In fact, the city recently shut down the list because more than 70,000 families were on it. Only one in four people in the U.S. who qualify for public housing or vouchers actually gets them.’
What could possibly be a better campaign issue for Democratic Party candidates than a good old fashioned housing affordability crisis?
Never mind that their own policies caused it.
Those who have in the past accused you of only attacking Republicans should make note of your very clear criticism of Democrat housing policies in the above post…
‘That’s No. 1,000 on the waiting list. In fact, the city recently shut down the list because more than 70,000 families were on it. Only one in four people in the U.S. who qualify for public housing or vouchers actually gets them.’
In many places the waiting list is closed, as they are already 10 years long, or even longer.
Not surprising when one considers that half the populace are Lucky Duckies.
There are some apts getting built in mesquite tx, suburb of dallas. I was surprised to read that the builder was accessing the low income housing tax credit program. Not sure how many of the units are for low income.
that the builder was accessing the low income housing tax credit program ??
It may be a mandate in the entitlement process…Requires a certain percentage of the units be offered to low income..
‘LOGAN SQUARE — Estefania Salgado and her boyfriend have lived in their one-bedroom apartment for the last five years, paying around $800 a month, but might soon have to pay nearly double that to stay in their home.’
‘Last month she received a 30-day notice to sign a lease for $1,450 plus utilities — or leave the apartment owned M. Fishman & Co.’
‘The rent increase follows a pattern, according to renters in those buildings and housing rights activists in the neighborhood. They point to a number of similar moves Fishman has made in recent years, buying large multiunit apartment buildings, rehabbing them and significantly raising rents.’
And you can send thank-you notes to both the Federal Reserve and the Federal Housing Authority, since they are the authors of your nearly-doubling in rent.
“Local Agent Charged With Real Estate Fraud”
http://www.tctimes.com/news/local-agent-charged-with-real-estate-fraud/article_017499e0-f2b8-11e5-b2f3-63fdc738a41d.html
“During a press conference Thursday, Genesee County Sheriff Robert Pickell said, “He does not have drug problem. It doesn’t appear that he has an alcohol problem. He just uses it to live on. He drives nice cars, lives with his parents.”
An NAR professional.
‘the average cost of rent increased for nearly every type of unit in Missoula in 2015. ‘The No. 2 question I get asked is if rent prices are ever going to come down or stabilize,’ he explained. ‘The answer is, ‘I doubt it.’ The average cost for a one-bedroom apartment in Missoula is $664 per month, according to data collected from 27,000 units over the course of a year. A two-bedroom apartment costs $767. ‘Everything getting built now is in that $900 to $1,100 range, so that raises the average price,’ he noted’
So “everything” being built is 50% or more than the average.
‘The Boston area came in fourth last year in the number of building permits issued for multifamily units, with only New York, Miami and Dallas posting higher numbers. New York more than doubled the number of apartment and building permits it issues last year, to 75,000. Miami’s numbers rose to 16,000, up from 10,000 in 2015, while Dallas notched a 54 percent increase, awarding 28,000 building permits last year for new apartments and condos, according to CMD’
“Everything getting built now is in that $900 to $1,100 range, so that raises the average price,’ he noted.”
Normally when one market segment is oversupplied relative to others, the relative price of the oversupplied segment eventually drops.
Perhaps the laws of economics work differently in Missoula.
Normally when one market segment is oversupplied relative to others, the relative price of the oversupplied segment eventually drops.
True, but when you need a roof over your head, you’ll find a way to pay, even if it involves having three jobs.
Or just have one job and rent it for a fraction of the cost of buying it.
I was talking about market supply and demand, which is a different subject than the extreme measures some desperate individuals will undertake to put a roof overhead.
“Perhaps the laws of economics work differently in Missoula.”
The peeps in Missoula with money are equity locusts. The rest… broke.
So “everything” being built is 50% or more than the average.
Two possible inductive leaps from this data; either:
- they are eventually going to struggle to fill these units at the intended rents, or
- apartment-building owners have been leaving a LOT of money on the table, since the market actually would have supported much higher rents all along.
Which seems more likely?
- they are eventually going to struggle to fill these units at the intended rents, or
Some of the “luxury” apartment complexes I have been to seem much like any other apartment complex, only new (or newly remodeled), better landscaped, and with fresh flowers in the clubhouse. They’re only a few years of use and a few cost cuts from being average run-of-the-mill apartments.
MSM Quote of the week:
“It’s like taking a wagon full of nitroglycerine across the prairie. It’s great if you get to the mountains and blow them up for gold. But it’s pretty unpredictable.”
Gotta [sic] go to work. Keep on “rock’n the boat!”
This is the first Sunday in several when I don’t have a gig. Gotta become part of the’gig economy’ to stay on top of those rent increases…
I hadn’t realized you played in a band. I think my respect for you has increased.
I’ve been a card-carrying member of the American Federation of Musicians for over three decades now. I guess that makes me part of the scourge of unionized laborers that 2banana likes to rant about in every one of his posts. But the reality is that AFM is a shadow of its former self, thanks to the collapse of the live music performance industry. I get a few union gigs a year that pay well, but much of my performing is pro bono.
Scourge or scrounge? Are people familiar with that word, scrounge? Something my dad used to say.
Millions of parents can’t afford heat and pay for their home at once
By Vicky Shaw
10:21, 4 Jan 2016
The cost of housing is so high more than 2 million parents are cutting back on heating and clothes to keep a roof over their children’s heads
More than one in four parents across England are cutting back on their winter heating or clothing to meet the cost of their rent or mortgage, according to Shelter.
The housing charity found that 27% of parents have cut back on either using energy to heat their home or buying winter clothing to help meet the cost of keeping a roof over their head this winter.
From its findings, Shelter estimated that 2.7 million parents across England are cutting back on heating or clothes shopping to meet their housing costs.
PA An elderly lady with her electric fire on at home
Cold homes are better than no homes
One in 10 (10%) of parents surveyed said they were worried about being able to afford to pay their rent or mortgage in 2016 and 15% said they had already cut back on Christmas food shopping or dipped into savings meant for Christmas gifts in order to help pay for their housing costs this winter.
Shelter said that more than 100,000 people have sought advice on housing debt from the charity’s helpline, online or face-to-face services in the last year.
The charity is urging anyone starting to have difficulties paying their rent or mortgage to get help as early as possible to avoid losing their home.
Read more: Brutal and unfair: Bedroom Tax tenants sacrificing food and clothes to stay in their homes
PA Signs advertising property
More and more people are renting as parents
A Department for Communities and Local Government spokesman said: “The reality is mortgage repossession claims continue to fall and are their lowest since 1987.
“This is thanks to our work to tackle the deficit and keep interest rates low, helping more families to stay in their hard earned homes.
“We’ve introduced measures to ensure tenants get a fair deal and are aware of their rights. We’ve also doubled the housing budget to deliver over 400,000 affordable homes and the number of new homes is up 25% in the last year.”
Read more: One tenant threatened with eviction every 90 seconds – where you’re most at risk
What you can do
Don’t suffer in silence
Here are some tips from Shelter helpline adviser Danielle Goodwin on dealing with rent and mortgage debt:
Ask for help early.
Focus on housing costs first. Make sure paying your mortgage or rent is the priority. The priority is for you to keep your home, even if you are getting demands from credit card and payday loan companies.
Contact your lender as soon as possible if you are behind on the mortgage.
If you are struggling with rent arrears, see if you can claim housing benefit to help pay the rent.
Respond to letters and phone calls. Read everything your mortgage lender, landlord or letting agent sends to you. Keep records of every letter and phone call.
The UK: the land of low wages and high prices.
“There is no future, and England’s dreaming” — the Sex Pistols
The 20% VAT doesn’t help.
The area I am looking at in the st augustine area is actually going down down down. so i asked realtor why prices are going down in spring she said because so many new homes are being built. btw. someone i know in the area was told the land near his home is No Build, guess what, they are putting in new homes in his back yard!
ann: I was in S. Jacksonville/St. Aug. 6 weeks ago and the amount of building was crazy so I am glad to hear prices are coming down.
I am thinking about that area as well. good luck
was told the land near his home is No Build, guess what, they are putting in new homes in his back yard!
There is no reliable No Build area in Florida that isn’t a National Park or Preserve. They just “swap” the land for some scrub land that they’ll proclaim is No Build until someone wants to build on it, and then they repeat the process.
‘How to buy a home with 50 percent down and never make a mortgage payment’
http://www.dallasnews.com/business/columnists/scott-burns/20160401-scott-burns-how-to-buy-a-home-with-50-percent-down-and-never-make-a-mortgage-payment.ece
Ahh yes. The reverse mortgage scam.
That columnist obviously wasn’t paying attention during the bubble-bust. Many have bought with zero-down, and never made a mortgage payment! Why waste 50% down, as this purchase-reverse-mortgage approach proposes?
How’s that hope ‘n change working out for you, Renter Nation?
One one candidate is speaking out about the true state of the economy and our Fed-blown asset bubbles and Ponzi markets.
http://www.zerohedge.com/news/2016-04-02/trump-country-headed-massive-recession-its-terrible-time-invest-stocks
Arent high rent costs also a bubble? With more apartments being built in many places and interest rates about to go up, house prices about to take a dive and more houses for rent will flood the market.
A few years ago in Torrance, I think in 2009 I signed a lease for $1500 per month. Then the apartment management called me in and they had me re sign at $1200. True story. They dropped it 20%!
This is because there was a glut of rentals in the South Bay. That was not a freak event. It was an application of the supply and demand curves of classic economics.
Fact is that short duration maturity yields are going up. Eventually medium rate maturities (three year and five year notes) will go up. Houses sitting out as shadow inventory are rotting and depreciating faster while the annual property taxes compete with treasury yields. The alternative places to put money are looking better too. Gold up 15% or so since last November looks better than RE.
In sum, very soon this rental affordability scare will be over with.
A few hundred new apartment rentals across from my office in Irvine just came online. As for my zip code “just south of Irvine” there is not much vacant land to build. I think The Irvine Comany sets the zoning to make sure of a certain ratio of multiple unit dwellings per SFHs. In all, The Irvine Company itself tries to make the RE prices go up. Maybe that is not really a bad thing. As long as I continue to get raises and keep most of my assets in stocks and precious metals.
Selfish Hoarder - it was probably 2009.. I had a similar experience at my old apartment in West Hollywood. My roommate and I actually negotiated a rent reduction of 300 a month. We moved in early 2011 and the building manager of our new place told us they had dropped the price of our apartment 200 bucks …
You can tell realtors are lying when their lips are moving.
Ground Zero reality here in KC is a little different. I’m sure the realtors/apartment managers are talking their book.
Daughter lived in one bedroom loft apartment between the “Power and Light” and the “Crossroads”, literally walking distance to either. $650/month. Only reason she is moving is because she is sick of the parking tickets. Now moving to a 1 bedroom in the River Market, just north of downtown. Marginally less “trendy hot spot”. Much more parking. Costs slightly less.
The fixr’s place is a 2 bedroom, 2 bath older (1970s=early 80s) vintage apartment in far north Johnson County (Mission). Less than 10 minutes to downtown, KU Med Center/Hospital Hill/St Lukes/Westport and the Plaza. (Lots of Interns/RNs/Nursing students here). Maybe 15 minutes to the trendy suburbs (as if I had a reason to go there anymore). They (and all of the similar apartment complexes around here) still had the “Tenants Wanted” signs out, last time I checked.
Cost? $860/month, including my carport. Been here almost three years, rent increase has averaged $10-20 year.
The “low end” places these guys are talking about are the “new build” apartments near Zona Rosa and in south Overland Park and in Olathe…..the 600 square foot places with designer kitchens and cooking islands.
The trouble with landlords is that they all BS each other. One of them does a newspaper article bragging about “my rents have doubled”, then they all try to jump on that bandwagon. Followed by “I wonder where my tenants went?”
Or a case of realtors saying “rents are doubling” in order to scare people into buying one of their $300-400K “starter homes”.
“The trouble with landlords is that they all BS each other. One of them does a newspaper article bragging about ‘my rents have doubled’, then they all try to jump on that bandwagon.”
What we have here, folks, is an excellent marketing tool, a marketing tool not to be used against the locals (who know better) but to be used against the out-of-towners and out-of-staters (who don’t know any better).
An out-of-town-out-of-state investor may question the validity of what a realtor has to say but, hey, if it is reported in the press then, hey, it is most likely to be true (or so goes the thinking - or lack of).
Mark Twain wrote in his book “Roughing It” about writing articles for the Virginia City newspaper he worked for as a reporter, articles he wrote about the local mining companies, articles he got paid for by the mining companies in the form of stock if the owners of the mining companies happened to like what he wrote.
The owners of the mining companies must of really liked what he wrote because he made a lot more money by selling his mining stock that he got for free than the money he earned while working as a reporter for the newspaper.
So, why is that? Since everyone around the mines knew which mining companies were a scam and which ones weren’t why would the mining companies care what is written in the newspaper?
The answer has to do with the market the articles were written for and directed to, which weren’t the local markets at all but instead were the East Coast markets, the Wall Street markets.
The real money made from the mines and from the mining companies (A mining company = A hole in the ground with a liar standing in front of it.) was from the shares of mining stock sold to gullible investors, gullible investors who used newspaper articles to verify whatever lies that the Wall Streeters were telling them.
That last part needs a bit of rewording: The Wall Streeters used the articles to give validity to the lies that they were telling the investors.
Everytime we move I submit the monthly rental $ to rentometer.com to help out other prospective renters. Don’t know how widely used it is, or how accurate. Here in Las Vegas, good neighborhoods are right next to bad ones, so it’s only helpful if you’re comparing places in close proximity, and the averages for even a half mile radius seem off.
Our rent is $1450 and that’s low for this neighborhood.
Try again:
rentometer.com
Low-end rates of $350 a month a few years ago are at least doubled now, and even that isn’t enough to entice developers to build ‘affordable’ multifamily housing. Sufficient returns on investment come from higher-end properties.”
Ah, the joys of unintended consequences. ZIRP causes a flood of money looking for return, and one way that it attempts to achieve said return is by upgrading affordable multifamily until it is no longer affordable. And thus, the poor are made to pay the price for the rescue of wealthy banksters from their own excesses.
And thus, the poor are made to pay the price for the rescue of wealthy banksters from their own excesses.
Until the poor are able to move back into their fixed-up old apartments again if, indeed, there are no renters for those apartments at the higher rates?
Or they’ll move to the newly impoverished exurbs, my prediction.
ZIRP also fueled many flippers and speculators who then snapped up affordable houses with 100% cash and in the process shut out people trying to buy with a mortgage and for the right reason…TO LIVE IN THE HOUSE. Experienced this personally several times in 2011/2012 and eventually gave up. In the meantime house priced locally have nearly doubled so buying would be foolish now. I did however benefit from ZIRP when I retired early in 2012 and cashed out my pension, the cashout was waaay bigger than it would have been if interest rates were normal. Rents are up 40% locally in the last few years as Ben’s article above from Petaluma states but I’ve been lucky so far, am renting a place I like at a reasonable price and have only had one small increase in 7 years.
Irving, TX Housing Market Implodes; Prices Crash 14% YoY On Cratering Housing Demand
http://www.zillow.com/irving-tx/home-values/
Looks like some neighborhoods in San Diego are starting the downward trend:
Scripps Ranch - Scripps Ranch market trends indicate a decrease of $30,000 (-5%) in median home sales over the past year.
http://www.trulia.com/real_estate/Scripps_Ranch-San_Diego/1337/market-trends/
Torrey Highlands - Torrey Highlands market trends indicate a decrease of $134,500 (-17%) in median home sales over the past year.
http://www.trulia.com/real_estate/Torrey_Highlands-San_Diego/33090/market-trends/
OT, but this is nutz (to me).
Have been transferring all of my CDs to an SD card to plug into the new car. Including double albums, 50-60 CDs. Transferring at max bit rate to preserve clarity.
SD card is only about 15-20% full.
Nowdays the cost of a transistor is almost free …
Wikipedia:
“As of 2015 , the highest transistor count in a commercially available CPU (in one chip) is over 5.5 billion transistors, in Intel’s 18-core Xeon Haswell-EP. According to Moore’s Law, the transistor count of the integrated circuits doubles approximately every two years.”
Something similar is going on with bandwidth, the cost of transmitting bits is almost free.
There gonna need that bandwidth and computing capacity for the jump from 2D to 3D. The Internet is going to be an actual place (virtual). Issues such as privacy and anonymity will be secondary to the $$$$.
That’s cool. Does your car stereo come with an SD card slot, or do you need to hook up a peripheral device?
2015 Challenger R/T. They did away with the CD play, which kinda pizzed me off. But I’m getting over it (Fast)
Car has UConnect. Has an aux imput, a USB port and a SD card port inside the center console storage compartment.
I’ve been loading CDs on a 32 MG SD card for a couple of days now. Whats cool about it is that when you bring up the media page on the center display, select the SD card as the source, it brings up a list of music on the card, sorted by either Artist or Album name (alphabetically). Once you have selected an album, it gives you a track list.
Sounds like another waste of money.
It’s probably standard equipment. The single SD card must be a lot more convenient than driving around with 100 CDs.
Irrelevant.
Isn’t there a satellite radio on the R/T?
Doesn’t help you in any way, but our 2015 Caravan came with a CD player. It also came with a year of Sirius, which I loved but did not renew. The comedy stuff is great.
Make backups. Just… trust me on this
Progressive economists will narrowly focus on how this new law will “help” low income workers, ignoring all the jobs that will be eliminated as a result.
San Diego Union Tribune
WAGE BOOST WORKS FOR SOME
Many in county stand to gain by hike in minimum; businesses fear worst
BY KATE MORRISSEY
The minimum wage law to be signed Monday by Gov. Jerry Brown is historic in its reach, as the government sets about securing raises for a huge swath of Californians in a giant progressive experiment in trickle-up economics.
Hundreds of thousands of people in San Diego County stand to have their wages increase under the law, which boosts the state minimum wage to $15 from its current $10 over the next six years.
Advocates for the working poor see the legislation as a flagplanting in the battle against the rich-get-richer trends of the past several decades, while conservatives see it as a job-killer that will backfire on the very people it’s supposed to help.
The increase will put the state’s minimum wage higher than it’s ever been, and closer to inflation-adjusted levels that haven’t been seen since 1968. In San Diego’s food service industry alone, more than 60 percent of workers are on tap for a raise.
Proponents say low-income workers will have more buying power, while businesses enjoy lower turnover and higher productivity. Critics fear many businesses will have to close down, and those that survive will do so with a combination of layoffs and price increases.
…
and closer to inflation-adjusted levels that haven’t been seen since 1968
Were many jobs lost when the rate was the same in 1968?
Time to get into robotics…
Novato, CA Housing Market Craters; Prices Plunge 12% YoY As Economy Sinks
http://www.movoto.com/novato-ca/market-trends/
“California Boasts Highest Percentage Of Welfare Recipients In The US”
http://www.utsandiego.com/news/2012/jul/28/welfare-capital-of-the-us/
The new minimum wage law is bound to reduce the percentage of Californians with jobs, and increase the number of welfare recipients supported by CA tax dollars.
The scheme fits perfectly into the Democratic Party dystopia which is California.
Our permanent Democrat Supermajority will be built one state at a time. Comrade Pelosi and California leads the way!
Apologies if this has been posted before
A network of secret offshore deals and vast loans worth $2bn has laid a trail to Russia’s president, Vladimir Putin.
An unprecedented leak of documents shows how this money has made members of Putin’s close circle fabulously wealthy.
Though the president’s name does not appear in any of the records, the data reveals a pattern – his friends have earned millions from deals that seemingly could not have been secured without his patronage.
The documents suggest Putin’s family has benefited from this money – his friends’ fortunes appear his to spend.
The files are part of an unprecedented leak of millions of papers from the database of Mossack Fonseca, the world’s fourth biggest offshore law firm. They show how the rich and powerful are able to exploit secret offshore tax regimes in myriad ways.
The offshore trail starts in Panama, darts through Russia, Switzerland and Cyprus – and includes a private ski resort where Putin’s younger daughter, Katerina, got married in 2013.
The Panama Papers shine a particular spotlight on Sergei Roldugin, who is Putin’s best friend. Roldugin introduced Putin to the woman he subsequently married, Lyudmila, and is godfather to Putin’s older daughter, Maria.
http://www.theguardian.com/news/2016/apr/03/panama-papers-money-hidden-offshore
The data contains secret offshore companies linked to the families and associates of Egypt’s former president Hosni Mubarak, Libya’s former leader Muammar Gaddafi and Syria’s president Bashar al-Assad.
Russian connection
It also reveals a suspected billion-dollar money laundering ring that was run by a Russian bank and involved close associates of President Putin.
The operation was run by Bank Rossiya, which is subject to US and EU sanctions following Russia’s annexation of Crimea.
The documents reveal for the first time how the bank operates……..
Iceland connection
Mossack Fonseca data also shows how Icelandic Prime Minister Sigmundur Gunnlaugsson had an undeclared interest in his country’s bailed-out banks.
Mr Gunnlaugsson has been accused of hiding millions of dollars of investments in his country’s banks behind a secretive offshore company.
Leaked documents show that Sigmundur Gunnlaugsson and his wife bought offshore company Wintris in 2007.
He did not declare an interest in the company when entering parliament in 2009. He sold his 50% of Wintris to his wife for $1 (70p), eight months later.
Mr Gunnlaugsson is now facing calls for his resignation. He says he has not broken any rules, and his wife did not benefit financially from his decisions.
The offshore company was used to invest millions of dollars of inherited money, according to a document signed by Mr Gunnlaugsson’s wife Anna Sigurlaug Pálsdóttir in 2015.
http://www.bbc.co.uk/news/world-35918844
So this leak targets all the enemies of the West and it’s Banking system?
A referendum on Britain’s continued membership of the European Union seems far removed from the UK housing market and whether or not an individual decides to buy or sell.
However, a survey of global investors, who play with billions of pounds every day, has sounded an alarm.
A KPMG poll of 25 global real estate investors with assets under management of over $400bn has revealed today that two thirds believe a Brexit would result in less inward investment into UK property and property companies.
The consensus was that an initial period of uncertainty could potentially be more immediately damaging to the UK real estate market than the stable post-Brexit world.
“Since the commitment to an EU referendum, the real estate community has been noticeably reticent about investing in the UK,” says Andy Pyle, head of real estate for KPMG.” In times of uncertainty, it’s easier to sit tight.”
http://www.telegraph.co.uk/business/2016/03/18/brexit-what-it-means-for-house-prices-and-the-supply-crisis/
James Hansen is at it again. Up until the other day his sea level predictions was to be just over fifteen feet sea level rise over the next 50 years, now he upped his prediction to being a twenty to thirty feet sea level rise over the next 50 years.
Our planet is destined to experience a twenty to thirty feet of sea level rise over the next 50 years. What a nut.
Here, read it for yourself (link to follow):
“We’re in the danger of handing young people a situation that’s out of their control,” said lead author James E Hansen, a retired Nasa climate scientist and director at Columbia University.
“It is generally agreed by other climate scientists that sea levels will rise as much as 20 to 30 feet following the melting of land ice, which other scientists believe would take centuries.
“But the paper, published in the Atmospheric Chemistry and Physics journal, says sea levels could rise to these levels within 50 years.”
Link:
https://uk.news.yahoo.com/scientists-warning-superstorm-climate-shift-152000328.html
“We’re in the danger of handing young people a situation that’s out of their control,” said lead author James E Hansen, a retired Nasa climate scientist and director at Columbia University.
“That would mean a loss of most of the world’s large cities and all their history”, says Dr Hansen in a video explaining the paper.
I like it, I love it,
I want some more of it,
I try so hard,
I can’t rise about it.
Don’t know what it is
‘Bout that Climate Chang Funding,
But I like it, I love it,
I want some more of it.
I like it, I love it — Tim McGraw — LYRICS - YouTube
http://www.youtube.com/watch?v=Cd9meRp91us - 340k -
Dr. James Hansen’s growing financial scandal, now over a million dollars of outside income
Anthony Watts / November 18, 2011
Dr James Hansen
It seems esteemed NASA astronomer turned climatologist turned paid activist Dr. James Hansen of the Goddard Institute for Space Studies (GISS) has not been reporting some income that he is required by law to do. How long will NASA continue to look the other way? Chris Horner explains. – Anthony
A Summary of James E. Hansen’s NASA Ethics File
By Christopher Horner
NASA records released to resolve litigation filed by the American Tradition Institute reveal that Dr. James E. Hansen, an astronomer, received approximately $1.6 million in outside, direct cash income in the past five years for work related to — and, according to his benefactors, often expressly for — his public service as a global warming activist within NASA.
This does not include six-figure income over that period in travel expenses to fly around the world to receive money from outside interests. As specifically detailed below, Hansen failed to report tens of thousands of dollars in global travel provided to him by outside parties — including to London, Paris, Rome, Oslo, Tokyo, the Austrian Alps, Bilbao, California, Australia and elsewhere, often business or first-class and also often paying for his wife as well — to receive honoraria to speak about the topic of his taxpayer-funded employment, or get cash awards for his activism and even for his past testimony and other work for NASA.
“We’re in the danger of handing young people a situation that’s out of their control”
Like it’s in old people’s control…
James Hansen is at it again.
It’s strange how your self-proclaimed general interest in science causes you to criticize the science behind global warming on a daily basis.
You do realize your behavior mimics that of a fossil-fuel industry troll?
Sing it, Sam.
If I had to take a stab at who would be the NFL MVP in 2027 it would be this kid. (if the Globalists allow football to be played in 2027)
Incoming New Canaan freshman QB offered scholarship from Florida State
By Chris McNamee Published 11:38 pm, Tuesday, March 29, 2016
An incoming freshman at New Canaan High School is already drawing attention from one of the top programs in college football.
Eighth-grade quarterback Drew Pyne, who will attend New Canaan in the fall, was offered a scholarship from Florida State, according to the Orlando Sentinel on Tuesday.
Drew Pyne 6′1″ | Class of 2020 QB Highlights - YouTube
http://www.youtube.com/watch?v=g2tcEe2CdV4 - 277k -
What it was, was concussionball.
I think. It’s…kinda hazy…
Stick with what you know Oddie.
Like men wearing dresses.
Fat angry old men in dresses.
Sounds right up your alley Rusty T
Why do you hate Jane Sanders?
Damn…. 8th grade and makes it look easy already.
Oh yeah. Stick with the high heels and dresses Lola.
For all you conspiracy lovers, some REAL conspiracy.
http://panamapapers.sueddeutsche.de/articles/56febff0a1bb8d3c3495adf4/
You’re late.
The disappearing low end rentals is an unfortunate byproduct of how most cities pay for affordable housing. It is often a tax on new construction, pushing new construction to only be ultra luxury, and only feasible during upturns.
That added with inner cities being hell holes 20-40 years ago has left us with a lack of 20 year old to 40 year old buildings in cities that would now be moving to naturally be more affordable housing.