Author Topic: Declining Rents  (Read 4536 times)

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Offline Liar Loan

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Declining Rents
« on: May 09, 2022, 11:00:31 AM »
Sacramento rent begins to rapidly lower as eviction rates rise
As eviction rates rise across the Sacramento region, it temporarily lowers rent rates as vacancies increase, according to experts.

As eviction rates across the Sacramento region rise due to COVID-19 rent relief ending, the price to rent is temporarily decreasing due to the vacancies, according to experts.

“On April 1 tenants were required to pay their rent again and if tenants did not pay their rent, landlords and property managers could start the eviction process,” said Bob Thomas, regional director of Pure Property Management.

According to the online platform Apartment List, the approximate average rent in Sacramento is as follows:

Studio - $1,900
One bedroom - $2,100
Two bedroom - $2,579
Three bedroom - $2,912

But on popular rental platforms, Zillow, HotPads, and Trulia – Sacramento area rental listing prices are lower than they have been in months, and hundreds of dollars less than the Apartment List averages.

Decreased rental prices is in direct response to lower occupancy, Thomas explained.


https://www.kcra.com/article/sacramento-rent-begins-rapidly-lower-eviction-rates-rise/39931748

Offline marmott

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Re: Declining Rents
« Reply #1 on: May 09, 2022, 02:19:18 PM »
There is a 2+ years backlog of eviction that is being absorbed by the market, let's see if the decline lasts or is just a temporary stage. Prices have gone up so much in the region I feel more people are stuck renting than ever.

Offline Liar Loan

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Re: Declining Rents
« Reply #2 on: August 30, 2022, 10:42:36 AM »
This is bad news for home prices.  Price-to-rent ratios are already severely out of whack and declining rents means home prices have even further to fall to get back into balance.

Rents fell in some California metro areas; is a wider cooling trend ahead?

Overall, median rent across the country's 50 largest metropolitan areas grew by $3 to $1,879 in July, representing the 17th consecutive monthly increase and a rise of 12.3% year over year, according to data from Realtor.com.

But in the Los Angeles-Long Beach-Anaheim metropolitan region, the fourth-most-expensive in the U.S., rent fell by $4 to $3,047. In the Riverside-San Bernardino-Ontario region, rent fell by $22, and the Sacramento area saw a $19 decrease.

https://www.msn.com/en-us/money/realestate/rents-fell-in-some-california-metro-areas-is-a-wider-cooling-trend-ahead/

Offline The California Court Company

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Re: Declining Rents
« Reply #3 on: August 30, 2022, 11:02:11 AM »
House price peaked in Feb/March, and rent usually lags because of leases/contracts. so no surprises here. if anything, Irvine rent will fare better than other cities because its central location and access to freeways.

This is bad news for home prices.  Price-to-rent ratios are already severely out of whack and declining rents means home prices have even further to fall to get back into balance.

Rents fell in some California metro areas; is a wider cooling trend ahead?

Overall, median rent across the country's 50 largest metropolitan areas grew by $3 to $1,879 in July, representing the 17th consecutive monthly increase and a rise of 12.3% year over year, according to data from Realtor.com.

But in the Los Angeles-Long Beach-Anaheim metropolitan region, the fourth-most-expensive in the U.S., rent fell by $4 to $3,047. In the Riverside-San Bernardino-Ontario region, rent fell by $22, and the Sacramento area saw a $19 decrease.

https://www.msn.com/en-us/money/realestate/rents-fell-in-some-california-metro-areas-is-a-wider-cooling-trend-ahead/
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Offline HMart

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Re: Declining Rents
« Reply #4 on: August 30, 2022, 11:07:07 AM »
Good news for affordability. Tough to hire people and for our workforce to keep up.

Offline Liar Loan

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Re: Declining Rents
« Reply #5 on: August 30, 2022, 11:46:55 AM »
House price peaked in Feb/March, and rent usually lags because of leases/contracts. so no surprises here. if anything, Irvine rent will fare better than other cities because its central location and access to freeways.

This is bad news for home prices.  Price-to-rent ratios are already severely out of whack and declining rents means home prices have even further to fall to get back into balance.

Rents fell in some California metro areas; is a wider cooling trend ahead?

Overall, median rent across the country's 50 largest metropolitan areas grew by $3 to $1,879 in July, representing the 17th consecutive monthly increase and a rise of 12.3% year over year, according to data from Realtor.com.

But in the Los Angeles-Long Beach-Anaheim metropolitan region, the fourth-most-expensive in the U.S., rent fell by $4 to $3,047. In the Riverside-San Bernardino-Ontario region, rent fell by $22, and the Sacramento area saw a $19 decrease.

https://www.msn.com/en-us/money/realestate/rents-fell-in-some-california-metro-areas-is-a-wider-cooling-trend-ahead/

We'll see... Irvine rents performed slightly worse than the rest of OC during the Great Recession.  Rents dropped precipitously in 2008 and took until 2012 to recover their prior peak.  Most people getting foreclosed on were not looking for high-end rentals, which made Irvine less desirable from a pricing perspective.

Offline bones

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Re: Declining Rents
« Reply #6 on: August 30, 2022, 01:27:16 PM »
Way out of whack. My cost to own makes no sense and ties up capital… unless there’s huge appreciation here in the next 12-24 months… but it is irvine and those damn schools so you never know :)

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Offline zovall

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Re: Declining Rents
« Reply #7 on: August 30, 2022, 01:50:13 PM »
Way out of whack. My cost to own makes no sense and ties up capital… unless there’s huge appreciation here in the next 12-24 months… but it is irvine and those damn schools so you never know :)

What are you planning to do with your capital?

Offline Compressed-Village

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Re: Declining Rents
« Reply #8 on: August 30, 2022, 02:05:01 PM »
House price peaked in Feb/March, and rent usually lags because of leases/contracts. so no surprises here. if anything, Irvine rent will fare better than other cities because its central location and access to freeways.

This is bad news for home prices.  Price-to-rent ratios are already severely out of whack and declining rents means home prices have even further to fall to get back into balance.

Rents fell in some California metro areas; is a wider cooling trend ahead?

Overall, median rent across the country's 50 largest metropolitan areas grew by $3 to $1,879 in July, representing the 17th consecutive monthly increase and a rise of 12.3% year over year, according to data from Realtor.com.

But in the Los Angeles-Long Beach-Anaheim metropolitan region, the fourth-most-expensive in the U.S., rent fell by $4 to $3,047. In the Riverside-San Bernardino-Ontario region, rent fell by $22, and the Sacramento area saw a $19 decrease.

https://www.msn.com/en-us/money/realestate/rents-fell-in-some-california-metro-areas-is-a-wider-cooling-trend-ahead/

We'll see... Irvine rents performed slightly worse than the rest of OC during the Great Recession.  Rents dropped precipitously in 2008 and took until 2012 to recover their prior peak.  Most people getting foreclosed on were not looking for high-end rentals, which made Irvine less desirable from a pricing perspective.

A whopping 4 dollars. I can’t even buy a happy meal with 4 dollars. I can’t even get a Big Mac with 4 dollars. Huge saving there.

Offline CalBears96

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Re: Declining Rents
« Reply #9 on: August 30, 2022, 03:22:43 PM »
House price peaked in Feb/March, and rent usually lags because of leases/contracts. so no surprises here. if anything, Irvine rent will fare better than other cities because its central location and access to freeways.

This is bad news for home prices.  Price-to-rent ratios are already severely out of whack and declining rents means home prices have even further to fall to get back into balance.

Rents fell in some California metro areas; is a wider cooling trend ahead?

Overall, median rent across the country's 50 largest metropolitan areas grew by $3 to $1,879 in July, representing the 17th consecutive monthly increase and a rise of 12.3% year over year, according to data from Realtor.com.

But in the Los Angeles-Long Beach-Anaheim metropolitan region, the fourth-most-expensive in the U.S., rent fell by $4 to $3,047. In the Riverside-San Bernardino-Ontario region, rent fell by $22, and the Sacramento area saw a $19 decrease.

https://www.msn.com/en-us/money/realestate/rents-fell-in-some-california-metro-areas-is-a-wider-cooling-trend-ahead/

We'll see... Irvine rents performed slightly worse than the rest of OC during the Great Recession.  Rents dropped precipitously in 2008 and took until 2012 to recover their prior peak.  Most people getting foreclosed on were not looking for high-end rentals, which made Irvine less desirable from a pricing perspective.

A whopping 4 dollars. I can’t even buy a happy meal with 4 dollars. I can’t even get a Big Mac with 4 dollars. Huge saving there.

Yeah, a whopping 0.13% decrease after 12.3% increase. Scary!!! Really bad news!!! Housing price will fall by 0.13%. Run for the hills.

Offline bones

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Re: Declining Rents
« Reply #10 on: August 30, 2022, 03:49:16 PM »
I think in your hatred of the sharer of the information, you guys are missing the macro level point of this. But we can all march to the beat of the echo chamber drum. Home ownership on three!

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Offline Compressed-Village

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Re: Declining Rents
« Reply #11 on: August 30, 2022, 04:04:43 PM »
Long term renting is suicidal, at this point the renters are locked out of the ownership. So, how is rent going to drop when more renters coming on queues. I got it, go to Idaho, Texas, or Florida for more apartments, right? Better check your renters rate there before you go.

Owning is not for everyone.

Offline irvinehomeowner

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Re: Declining Rents
« Reply #12 on: August 30, 2022, 04:08:31 PM »
Did rents really drop more in Irvine than the rest of OC or is that another Liarism?

I just heard that rents are still pretty high... where are the charts?
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Offline Compressed-Village

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Re: Declining Rents
« Reply #13 on: August 30, 2022, 04:11:20 PM »
Did rents really drop more in Irvine than the rest of OC or is that another Liarism?

I just heard that rents are still pretty high... where are the charts?

He only has good news for Irvine.

Offline bones

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Re: Declining Rents
« Reply #14 on: August 30, 2022, 04:14:43 PM »
Rents are “pretty high” is pretty solid quantitative analysis.
This can be our podcast topic number 2, after we shit on floorplans :)

 

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