September 24, 2016

Something More Complicated Might Be Going On

A report from the Daily Nebraskan. “In the past four years downtown Lincoln has quintupled its number of beds through the addition of several student-marketed apartment complexes, adding the perfect living option for some, but a nightmare for others. Often targeted toward students, the new downtown apartment complexes provide housing and other amenities for those looking for a place to live while in school. They also tend to rent by bedroom, rather than by unit. And with the university aiming to increase enrollment – and by extension, the amount of students seeking off campus apartments – developers smelled a market for apartment complexes.”

“But, at least according to initial numbers, that market may not be developed yet. Vacancy rates reported by student-oriented apartment complexes are higher than the most recent statewide average of 5.6 percent. Aspen and 8 | N reported a 36.7 and 27.7 percent vacancy rate, respectively. Students moving in have found unfinished construction, exposed nails, appliances that don’t work and a host of other problems. After living at Claremont Apartments his sophomore year, Austin Moylan switched to Prime Place in August 2015. Shortly after moving in, he noticed residents weren’t treating the property well.”

“‘People just treated the place kind of how it was given,’ Moylan said. ‘It became kind of a trend to punch holes in the wall. There were entire walls that were just shredded with the insulation ripped out. People kicking walls in and punching walls in, up and down every stairwell in the building.’”

The Los Angeles Times in California. “An Orange County developer is proposing one of the most ambitious developments of the current real estate boom in downtown Los Angeles — a massive mixed-use complex with twin towers soaring 58 stories. SunCal is proposing 1,736 residences, two hotels, shops and creative offices and a school on a lot now the site of two warehouses. About 430 of the residences would be condos, the rest apartments.”

“SunCal’s proposal comes amid growing concern over the level of development in downtown Los Angeles. Though experts don’t foresee a crash as in 2008, there’s debate whether the top of the current cycle has been reached. Some lenders have grown wary of new projects and a handful of recently opened luxury apartments are offering concessions, such as free rent and free parking, to attract wealthy tenants.”

“In all, nearly 10,400 apartments and condos are under construction downtown, according to a July report from real estate firm Transwestern. In just three years, Mike Parillo has watched development in the Arts District explode while rising rents have forced many of his fellow artists out of the neighborhood. He said the proposed project could dramatically change the aesthetic of the area. ‘Sixty stories? That’s crazy,’ Parillo said. ‘That seems out of place. It doesn’t even compute.’”

From Hawaii News Now. “For some time now, Hawaii’s skyrocketing rents have been explained with simple economics – not enough supply, too much demand. But new Census figures suggest something more complicated might be going on. In the second quarter of 2016, nearly 11 percent of Hawaii’s rentals were vacant, Census estimates show. That’s up from 8 percent at the same time last year (and a far healthier 5 percent in early 2015), and is on par with states with far more affordable housing markets.”

“In fact, Hawaii had the sixth-highest rental vacancy rate in the nation during the quarter. Nationally, the vacancy rate was 6.7 percent in the second quarter of 2016. Meanwhile, Hawaii also has the highest rents in the nation, Census numbers also show, and they’re only rising. Eugene Tian, state economist, said the rental vacancy rate might be legitimately increasing in some areas (such as urban Honolulu) because renters are being priced out or moving into homeownership thanks to a construction boom in Kakaako.”

“He said some renters are undoubtedly ‘withdrawing from the market’ because of the rising prices, moving in with family or sharing their housing cost burden by getting roommates. (In the second quarter of 2016, the rental vacancy rate in urban Honolulu was 10.1 percent, up from 7.5 percent in the same period a year ago.)”

“Meanwhile, economists say, the state’s rental housing vacancy rate is also likely going up because of a glut of vacation and seasonal rentals on the Neighbor Islands. The issue is particularly acute on Kauai and Maui. Kauai, for example, has a rental vacancy rate approaching 18 percent (up from 6 percent in 2000). Maui County’s rental vacancy rate is 26 percent, from 7 percent in 2000, according to a 2015 state housing availability report.”

“The report concluded that the significant increases in rental vacancy rates on the Neighbor Islands highlighted the ‘increase in the number of seasonal and vacation units.’”

The Houston Chronicle in Texas. “The glut of new apartments is dragging down average rents in Houston, with rent in August falling the most in six years, a new report showed. Not everyone is getting relief, however, as renters in suburban markets with concentrations of older complexes saw the highest rent increases, Axiometrics reported.”

“‘Though job gains in education, health care and hospitality somewhat offset the continued job losses in the energy sector, the demand for apartments is just not there,’ Stephanie McCleskey, vice president of research for Axiometrics, said in an announcement. ‘With new properties being completed every month, they just won’t be filled as quickly as we would like to see until job growth picks up.’”

The Elko Daily Free Press in Nevada. “One of Elko’s biggest downsides has gone by the wayside. After having a shortage of apartments and multi-family dwellings for most of the past four decades, we now have an ample supply. Today, it’s actually ‘a renter’s market,’ as one real estate manager told us for a recent article on the wealth of new rental properties. The experts were divided on whether Elko has a ‘glut’ of rental housing, but they all agreed there is no longer a shortage.”

“Large apartment complexes have literally been popping up all over town. Instead of a waiting list, newcomers might find themselves being offered a free month’s rent. Like many aspects of living in Elko, prices are geared toward people employed by the high-income mining industry. But the arrival of more upscale apartments also means that more lower-end properties are left open and available for those not making a miner’s salary.”

“The abundance of rentals also frees up motel rooms. Many newcomers have had to live out of motels, some of which offer weekly and monthly rates. At the same time, hundreds of more motel rooms are being added to the inventory. If anyone was reluctant to move to Elko because of the lack of apartments, they now have no reason to delay. We almost wish we didn’t live here already, so we could move here now.”

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Comment by Ben Jones
2016-09-24 12:12:20

From Albany, New York (I’m pretty sure):

‘Apartment builders outdo each other to lure tenants’

‘While some offer location as the draw, others stock their complexes with amenities, so the residents don’t have to leave home to watch a movie, grab a pumpkin spice latte or work out.’

‘[…] if you want luxury without a long-term commitment, these places have it: 9- and 10-foot ceilings, spa bathrooms, granite, quartz, indoor, heated parking, on-site exercise classes, and the list goes on.’

Comment by Ben Jones
2016-09-24 12:16:33

Here’s the new rich renters story:

‘AvalonBay wants millennials earning $150K in Yonkers’

‘Monthly rents at the complex will average about $2,000 for a one-bedroom unit and about $2,800 for a two-bedroom. The developer’s representatives gave the Yonkers City Council details about their target market, monthly rents and other aspects of their proposal Tuesday night as the council considers voting on a special permit for a planned urban redevelopment zone. AvalonBay is proposing 609 units with 702 parking space across three buildings on a 13-acre site along Alexander Street.’

‘Mark Weingarten, AvalonBay’s attorney, said the future residents will easily afford the rents and be a boon for the area. “These are people who choose rental housing. They don’t have to do it financially, but they choose it as a lifestyle consideration, not for economic reasons,” Weingarten said. “They’re great to keep this renaissance going in downtown Yonkers.”

‘AvalonBay is one of the largest rental apartment builders in the country with more than 80,000 apartments in 16 markets. Its local properties include Avalon White Plains, The Avalon in Bronxville and Avalon Ossining.’

“There’s really a lot going on in our downtown. As of right now, there’s 1,000 units that are being constructed,” Yonkers corporation counsel Michael Curti told the City Council.’

Comment by taxpayers
2016-09-24 12:17:53

Ben can shut down the bb
This site tells the future

Comment by rms
2016-09-24 18:32:04

“And most economists think prices will keep climbing, at least in the short term: The NAR is calling for a 4.4% increase in existing-home prices this year and 3.4% in 2017; other economists and strategists also put 2016 price growth in the 4% to 5% range.”

What’s driving prices higher… easy credit or wage growth?

Comment by Ben Jones
2016-09-24 12:33:52

‘new Census figures suggest something more complicated might be going on. In the second quarter of 2016, nearly 11 percent of Hawaii’s rentals were vacant, Census estimates show. That’s up from 8 percent at the same time last year (and a far healthier 5 percent in early 2015)’

‘In fact, Hawaii had the sixth-highest rental vacancy rate in the nation during the quarter. Meanwhile, Hawaii also has the highest rents in the nation, Census numbers also show, and they’re only rising’

‘Low-rent apartments in Tigard kicking residents out’

‘Lease prices more than doubling at former Walnut Tree Apartments, now ‘Tigardville’

‘As housing prices boom and vacancies plummet throughout the Portland area, the rents at their Walnut Tree Apartments seem like an incredible deal — which might explain why a Los Angeles-based company bought the complex this year, renamed it the Tigardville Apartments, and served all of its residents with notice that their leases will be terminated and they must move out. The complex’s new website features a sleek new logo and advertises two-bedroom units starting at $1,300 per month, telling visitors to the site: “Apply now!”

‘As property values in the Portland area rise, Cristina Palacios with the Community Alliance of Tenants said she has been seeing it happen more and more. “In the last two years … we’re hearing that there is building-wide, no-cause evictions with the purpose of flipping over the apartment and charging for more rent,” Palacios said.’

‘When Trion Properties bought the Walnut Tree Apartments, they brought in a new manager, Mckenzie said. He recalled what she said when he and his wife confronted her about the termination notices and planned rent hikes. “She said it will be a better community in here,” Mckenzie said, shaking his head in disbelief.’

Comment by Ben Jones
2016-09-24 12:58:53

‘People just treated the place kind of how it was given,’ Moylan said. ‘It became kind of a trend to punch holes in the wall. There were entire walls that were just shredded with the insulation ripped out. People kicking walls in and punching walls in, up and down every stairwell in the building.’

Ring, ring…


Mr. Sixpack?

Yes, Joe speaking.

This is Bob Paperpusher with your pension fund. I have some bad news.

Comment by 2banana
2016-09-24 13:17:53

There are no pensions anymore for Joe.

However, his taxes will triple or more to cover the largest political donors and thier pensions.

Public unions.

And they all give 99-1 to democrats.

Comment by junior_bastiat
2016-09-24 15:05:49

Peddling fiction I see. The most high ministry of truth won’t like that at all, not one bit.

Meanwhile, some drug addict actor is squaring off against a cartoon frog and getting rocked:

This election is going to go down in the history books as all time!

Comment by palmetto
2016-09-25 06:32:26

Donald Trump hasn’t even been elected and some of the effects he’s making can already be felt. I had the TV on in the background yesterday, there were some college games on and I was startled when I heard a commercial for Discover Card say that their customer service was 100% US based. Wait, WHAT? Where did that come from?

And then I see this clip from Jimmy Fallon doing a comedy bit about Chicago reversing its decision to name a high school after Obama:

Whoa, SHOCKER! And this is the guy who had O and Michelle on his show in a major suck-up. He’s got a ways to go, but he’s starting to sound like Carson. Maybe the Tonight Show can be made great again, too.

It’s almost as if some corporations who depend on public patronage are having this realization that hey, there’s this YUUUGE group of people of all ages that thinks what we’ve been giving them sucks major azz, maybe a change of direction is needed. It’s like Trump has been doing their jobs for them, doing a major marketing survey and showing them that there’s a massive number of people who don’t care for what’s been dished out. These are potential customers, viewers. That’s money, that’s ratings.

Trump should bill them for it and charge them plenty. Why not? He’s done more for them fer free than their sucky ad agencies and marketing firms with their bogus “metrics”.

Donald J. Trump, everybody. Donald J. Trump.

Comment by azdude
2016-09-24 13:44:55

more fiat will have to be created to pay off debt when it come due.

Comment by junior_bastiat
2016-09-24 14:56:52

Just heard on bloomberg radio today that 1 in 5 home buyers last year made an offer (I think it was just an offer, may have been an actual buy) on a house they had never seen in person!

Yeah, this is going to end well!

Comment by Raymond K Hessel
2016-09-24 15:48:30

As more and more formerly prosperous municipalities succumb to their corrupt, incompetent, collectivist kleptocrat (D) maladministration, the Democrats will have a taxpayer-funded solution: mergers!

Comment by Raymond K Hessel
2016-09-24 15:54:29

The banksters have captured regulators, enforcers, the judiciary, and the Republicrat duopoly political establishment. They can also count on the low-IQ mouth breathers who comprise 95% of the electorate meekly bending over for them on demand by voting for their Establishment water carriers. However, things could get more dicey if terminated employees who have taken the fall for the pervasive corporate culture of corruption end up hauling their former bosses in front of juries who likely have no love for the TBTF banks.

Comment by Raymond K Hessel
2016-09-24 15:59:24

I am shocked, shocked! that a country run by socialist Comrades of Proven Worth, i.e. corrupt collectivist kleptocrats, could be on the brink of collapse. A preview of coming attractions when ‘Murica gets its permanent Democrat supermajority of the takers and the “redistribution of the wealth” reaches red banner levels. Forward, Soviet!

Comment by The Selfish Hoarder
2016-09-24 21:34:36

Their socialism differs from ours by degree.

Forced redistribution of wealth is socialism, whether it’s redistributed to defense workers, defense companies, the Pentagon, the military, or to the people who don’t want to work.

Defense budget is over $700 billion.

Your man wants that increased.

Comment by Raymond K Hessel
2016-09-24 16:03:58

Our NEA indoctrination mills are have the desired effect: the dumbing down of the precious snowflakes. Forward!

Comment by patrick
2016-09-24 16:05:57

So they are going to knock down a coal fired electric plant that produced at about six cents, replaced their energy production with wind mills and subsidized them at 78 cents- - after losing a billion on the cancellation of gas fired plants in one of their buddy’s ridings.

That plant’s footprint is going to be used to house 20,000 people close to the lake and by 100 hectares of man made land - in lake Ontario. In high rise condos.

Where do these expensive fools come from?

I wonder if they have ever witnessed a Lake Ontario storm ?

Comment by Raymond K Hessel
2016-09-24 16:13:39

Follow the money. The CEOs of these wind and solar scam companies are very astute about donating to the Comrades of Proven Worth who make public policy.

Comment by former government contractor
2016-09-25 04:46:33

Department of Energy got $17 billion in Recovery Act funds for “renewable” energy. And now they’re scrambling to get those projects cleaned up and off the books by federal fiscal year end 9/30. It is politically motivated i.e. King Obama’s legacy and before the election.

Think Solyndra was a big deal? Well there’s hundreds of smaller companies that got millions that, in the words of a former coworker, “we don’t want this in the New York Times.”

Comment by Solyndra scandals
2016-09-25 05:31:00

Hillary’s Solar Panel Plan Is Basically A $206 Billion Handout To China, Report Finds

Michael Bastasch
4:59 PM 09/23/2016

Democratic presidential candidate former Secretary of State Hillary Clinton’s plan to build half a billion solar panels by the end of her first term in office could end up being a $206 billion handout to China, according to a new report.

“Hillary Clinton’s solar plan will cost more than $200 billion above and beyond current projections,” according to an analysis by the free market Institute for Energy Research (IER).

“But the true cost of the plan is much higher, especially when the costs of adding this much solar power is considered,” IER reported. “Making matters even worse, electricity demand is not projected to grow enough that this new generating capacity would be needed, making Clinton’s plan even more wasteful

Read more:

Comment by redmondjp
2016-09-26 09:54:45

And they still haven’t figured out that tiny little detail about solar panels not generating any power at night. You might not care, unless you are in a hospital on life-support equipment, or need a CPAP machine while you sleep.

(Comments wont nest below this level)
Comment by Raymond K Hessel
2016-09-24 16:06:33

British parliament agrees the war on Libya - Cankles’ finest hour - was a “sh!t show” and a boon for ISIS.

Comment by rms
2016-09-24 18:37:21

The UK is ’bout finished; last one out shut-off the lights.

Comment by Raymond K Hessel
2016-09-24 16:41:39

Sales to foreign buyers plunge 96% in Vancouver. And so it begins….

Comment by inchbyinch
2016-09-24 18:18:30

I’ve been following the Asian $ (China & So Korea mostly)in DTLA (Downtown Los Angeles) for a while now, and I am flabbergasted at 105 properties in process or already completed in a 5 year span, so far. It has brought a vibrancy to DTLA, but who can afford the rents, let alone the disposable income to support the commercial R E build-up. My uneducated (compared to my network of brainiacs) is 2 years and this is a meltdown. Urbanism is great in Portland and Seattle, but I don’t see it catching on in So Ca. Just my 2Cs. It’s new and cool right now, but… Btw, there is lots of tech start ups in the Arts District.

Comment by inchbyinch
2016-09-24 18:30:54

I met a Wharton MBA who is brilliant, and in Commercial, but he started decades ago. I also heard a former Hedge Fund Manager (Law School Grad) speak about his Syndication deal. Another really bright guy. Those are the people pretty solid in the Commercial R E game. All these newbies (foreign $ included) are toast, imho.

Comment by azdude
2016-09-24 18:58:05

has the santa claus rally started? LMFAO

Comment by Apartment 401
2016-09-25 04:53:42

Drudge links to (neocon globalist warmonger) William Kristol’s Weekly Standard reporting that Colorado is in play and could decide the election:

Bernie won Colorado 59 to 40, and I know alot of bernouts who will stay home before they ever vote Hillary.

LMFAO if Colorado tips the entire election to Trump by 100 votes.

“This sucker could go down” — George W. Bush

Comment by Apartment 401
2016-09-25 05:10:15

New York Times real journalists endorse Hillary for president:

This election has been the greatest political lesson of my lifetime of who real journalists are and the masters they serve.

Comment by Apartment 401
2016-09-25 05:32:42

FoxNewsHate rallies the base, reports mall shooter was an act of love from Turkey:

Comment by rms
2016-09-25 06:21:21

Another medicated member of the public.

Comment by phony scandals
2016-09-25 07:32:03

Gun Free Zone?

The Macy’s makeup artist at the Gardens Mall would have returned fire.

Comment by aNYCdj
2016-09-25 05:33:50

A 32-year-old disabled vet thought ITT Tech was his ticket out of poverty — his story shows everything wrong with for-profit colleges

Comment by Professor Bear
2016-09-25 05:59:38

The global economy
The low-rate world
Central banks have been doing their best to pep up demand. Now they need help
Sep 24th 2016

THEY do not naturally crave the limelight. But for the past decade the attention on central bankers has been unblinking—and increasingly hostile. During the financial crisis the Federal Reserve and other central banks were hailed for their actions: by slashing rates and printing money to buy bonds, they stopped a shock from becoming a depression. Now their signature policy, of keeping interest rates low or even negative, is at the centre of the biggest macroeconomic debate in a generation.

The central bankers say that ultra-loose monetary policy remains essential to prop up still-weak economies and hit their inflation targets. The Bank of Japan (BoJ) this week promised to keep ten-year government bond yields around zero. On September 21st the Federal Reserve put off a rate rise yet again. In the wake of the Brexit vote, the Bank of England has cut its main policy rate to 0.25%, the lowest in its 300-year history.

Come Yellen and high water

But a growing chorus of critics frets about the effects of the low-rate world—a topsy-turvy place where savers are charged a fee, where the yields on a large fraction of rich-world government debt come with a minus sign, and where central banks matter more than markets in deciding how capital is allocated. Politicians have waded in. Donald Trump, the Republican presidential nominee, has accused Janet Yellen, the Fed’s chairman, of keeping rates low for political reasons. Wolfgang Schäuble, Germany’s finance minister, blames the European Central Bank for the rise of Alternative for Germany, a right-wing party.

Comment by azdude
2016-09-25 06:18:59

When did they become in charge of the economy?

They have most everyone buffaloed.

It is impossible to create wealth by printing pieces of paper.

The problems in the economy are impossible for central banks to fix.

Comment by phony scandals
2016-09-25 06:15:32

More lies about Hillary.

It looks like she only has a problem with one eye.

MORE evidence Hillary Clinton has something wrong with her eyes … - 179k - Cached - Similar pages
1 day ago .

Comment by Apartment 401
2016-09-25 06:40:55

She’s gonna stroke out on stage tomorrow night and get carried out on a stretcher.

Comment by Apartment 401
2016-09-25 06:20:19

World Net Daily rallies the base promoting the next neocon war:

No “smaller government” or “less regulation” or “lower taxes” happening here.

Comment by azdude
2016-09-25 06:21:49

is printing money a zero sum game?

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