Rents Are Rising Rapidly After Long Lull

[Herman Munster]

http://www.nytimes.com/2006/08/19/business/19rents.html?_r=1&oref=slogin

According to government data, in both June and July average rents across the country were 3.5 percent higher than a year earlier, the steepest gains in almost four years. And it is feeding into a broader rise in inflation.

The rise in apartment rents is in many ways a consequence of what has happened to home prices. As mortgage rates have begun to creep up and as home prices have soared out of reach of many Americans, many renters who a couple of years ago might have bought a home are staying put. This is tightening the rental market to the point where apartment owners now have more leverage to demand higher monthly payments.

In New York City, where a steady stream of young arrivals, limited space and rent controls limit the supply of available apartments, rents never fell as they did in many other cities. Now they are advancing at a much faster clip.

In the metropolitan area covering New York, Long Island and Northern New Jersey, annual increases in rent surpassed 5 percent in the second half of last year for the first time since 1990, according to government statistics. And brokers and landlords in the city speak of even sharper rises lately.

[pooja]

1. Now, the poor people suffer. When will politicians do something

When most of America is sleeping on the streets? Or will they just step over the huddled masses while the tow to the top 1%?

[skids]

2. This particular problem will fix itself.

Rents will get downward pressure from "investment homes" rented out to recoup some costs, and on the renter's side a tendency for people to take on housemates more often (There's been a buyer's exhuberance in the rental market, too -- a lot of people living beyond their means in order to live alone, rather than share.)

Now as to the general ruination of our economy for all but the rentier class, most of the current set of politicians will not do squat now, and never will. They are cut from the same cloth as those that caused this problem, and they are either in denial of the consequences, or in fact looking forward to them (e.g. they like the idea of indentured servitude.)

[pooja]

3. Right now, I am seeing a lot of buyer insentives for the apt. turned

condo. I saw the one accross the street drop 20,000. I might go and make an offer. But I will only buy if there are no closing costs, no first year association fees, and a guarantee by an isurance company to insure the condo.

[skids]

4. Yeah that market is hurting hard...

...a lot of people converting apartments are starting to back out of their plans.

[Viva_La_Revolution]

5. housemates... already happening...

my Ex-husband and I are now sharing rent, 15 years after the divorce. He recently divorced his second wife, I could only afford a 1 bedroom in a bad part of town. But together, we can afford a 3 bedroom in a good suburb, and our boys can finish out high school in a good district.

We make much better room-mates than a couple. :)

[RagingInMiami]

7. Do any of you bring home dates?

And if so, how does that work out?

[Viva_La_Revolution]

8. not this time... so far

about 5 years ago, just before he got remarried, we shared a house for about 6 months. It was cool, because he was seeing his soon-to-be, but I avoided bring my dates home, just out of respect.

Kinda like with our kids, our 'dates' aren't introduced unless it's serious.
A modern version of the "going home to meet the parents test"? :evilgrin: better though... If our 'dates' can't handle the situation, they aren't around for very long. It comes in handy. :evilgrin:

This time, he was just divorced, and I am recovering from a toxic relationship. Neither of us is actively "looking".

Ask me again about a year from now, and you may get a radically different answer, but I'm fairly confident that we can work out a comfortable situation, better than we ever could when we were married. it's a blessing, really, no matter how you look at it. :)

[Phredicles]

6. A further squeeze on renters, at least on the west coast, is that

a lot of apartments buildings are being converted into condos, or town town and replaced by a building of condos. So if you can't afford to buy, you have to find another apartment - usually for more money, or less space, or both.

[Neshanic]

9. New houses for rent are cheaper than apts in Phoenix. See Craigs List

The bottom is falling out of the development market here, and for my two bedroom apt rent, I can have a new four bedroom, never lived in, two car garage home. Actually in some cases 100 bucks less.

[silverojo]

10. What part of Phoenix are you from...Oz?

Rents are soaring out here. Any home going for less than $1400/month, and you're living in an area where you need to wear a bulletproof vest. I know...we've been looking for another place to rent, and it's a nightmare.

Forget Craig's list...try going out and trying to find a place to rent in the real world. You'll be unpleasantly surprised.