Steep rent hikes to continue through 2019, USC forecast states

Maybe...but I'll tell you right now Irvine is saturated with rentals.  For the first time in a long time, the number of Irvine rental listings is outnumbering the number of for-sale listings.  Lots of FBCs bringing in cash from China buying all the new homes and them dumping them onto the rental market right after closing.
 
USCTrojanCPA said:
Maybe...but I'll tell you right now Irvine is saturated with rentals.  For the first time in a long time, the number of Irvine rental listings is outnumbering the number of for-sale listings.  Lots of FBCs bringing in cash from China buying all the new homes and them dumping them onto the rental market right after closing.
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Are you talking about SFH or condos in the 2bd range? I am seeing some quite highly priced apartment rentals (in the IBC area and IAC in general) which is confusing to me with the oversupply of SFH rentals.
 
HMart said:
USCTrojanCPA said:
Maybe...but I'll tell you right now Irvine is saturated with rentals.  For the first time in a long time, the number of Irvine rental listings is outnumbering the number of for-sale listings.  Lots of FBCs bringing in cash from China buying all the new homes and them dumping them onto the rental market right after closing.
Click to expand...

Are you talking about SFH or condos in the 2bd range? I am seeing some quite highly priced apartment rentals (in the IBC area and IAC in general) which is confusing to me with the oversupply of SFH rentals.
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Everything from 2bed condos to 5bed SFRs...Avalons, Helenas, Petalumas, Marins, Piedmonts, etc are up for rent on MLS.  Yeah, IAC has been increasing rents a good bit in the past 2-3 years.
 
USCTrojanCPA said:
Maybe...but I'll tell you right now Irvine is saturated with rentals.  For the first time in a long time, the number of Irvine rental listings is outnumbering the number of for-sale listings.  Lots of FBCs bringing in cash from China buying all the new homes and them dumping them onto the rental market right after closing.
Click to expand...

I've noticed the same thing in my neighborhood.  I've never seen so many for lease signs after a for sale sign is removed.  It does seem to take longer for them to lease out though... 
 
shahshah said:
So how does this impact local buyers? Will investors slow their roll?
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Not sure, I'll tell you there's a good bit of 1031 exchange buyers out there as I've worked with a few and had a handful make offers on my listings.
 
shahshah said:
So how does this impact local buyers? Will investors slow their roll?
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Local buyers are paying a significant premium for homeownership vs renting a house. And the premium is going up, not down.
 
HMart said:
shahshah said:
So how does this impact local buyers? Will investors slow their roll?
Click to expand...

Local buyers are paying a significant premium for homeownership vs renting a house. And the premium is going up, not down.
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Again house and condo's are a different ball game. For example, a 1M house with $4500 mortgage will not fetch you $4500/mo rent whereas a 600k condo with $3300 mortgage (inclusive of everything) can fetch a rent of 2900-3k, ofcourse you still loose like the way i am, but much better than converting a investment house into a rental house.
 
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