Average rent in Irvine

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biuniu_IHB

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<p>What do you guys/gals think? Will rent continue to stay at the current levels in the future or go up/down? Even though there will probably be more renters as people wait on the sidelines for the housing market to settle down I can't imagine many people continuing to pay this kind of rent.</p>

<p><a href="http://www.ocregister.com/money/irvine-county-housing-1881168-average-rent">www.ocregister.com/money/irvine-county-housing-1881168-average-rent</a></p>
 
I'm not sure blu, one thing I can say is that there are a LOT of empty units here in our IAC complex here in Irvine, I pay around $2200 right now for a 2bed/2 1/2 Br Townhouse, our lease is up in January 08...so we'll see, aparently one can negotiate on an increase, we're perfect Tennants even though I say it myself plus we usualy pay the rent 1 or 2 weeks before it's due...so we'll see....;-)
 
The IAC just raised my rent $ 10.00 a month. So rents are not going up that fast. Yes its a premium. But after living in the city of Orange for the last 5 years and watching my neighborhood turn into Tijuana. Irvine is worth the extra cost. I have the larger 1 bedroom with attached garage via the kitchen $ 1945.00
 
<p><em>The real question is, how long will people put up with a 25% or more premium to rent?</em></p>



<p dir="ltr">Answer: As long as Irvine has low crime, generally great schools, newer amenity-laden product, and access to jobs (thus lowering commute time/cost). Other communities only possess 2-3 of those attributes.</p>
 
<p>Question about the relationship between rent and mortgage:</p>

<p>In the article it says 44% of Irvine households occupied by rental. Usually, the lower-incomed would rent and hiegher-incomed would buy...usually....</p>

<p>Anyway, would you want to take the median salary of the 56% of households that are home owners, then multiply by 3.2 (add 10% or 20% on top as you want) to get to the expected price of the median home in Irvine?I bet the $86,000 median income would sky rocket to $125,000 for the Top-56%, that gives $500k. if the Top-56% edian is $150,000 it adds up to $600k.</p>

<p>Can someone what's wrong with my analysis?</p>
 
<em>"Can someone what's wrong with my analysis?"</em>





Selection bias.





If you only consider homeowners, you are ignoring the potential pool of renters who may become buyers. The market consists of both groups.





The relationship between median income and median house price has been consistent in the rest of the country for 60 years. Only with this nationwide bubble has this relationship been temporarily broken. In California this relationship was broken in the 1970s and we have been on a cycle of bubble and bust ever since. The last two times prices bottomed near a ratio of 4.
 
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