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159 Comments
- TheTaoOfBill, on 01/26/2009, -2/+48If you're in college right now chances are good that it's cheaper to live in an Apartment now than a dorm. I just signed a lease for my first apartment and I was absolutely stunned at how much more living space I will be getting for much less than the cost of my dorm right now.
- demonfafa, on 01/26/2009, -3/+45WTF are they talking about? Rents are skyrocketing in the Metro DC area as well as most metropolitan areas on the Eastern Seaboard. The housing market collapse is forcing people to rent again and since demand is up, the rental companies think they can charge whatever they want.
- redwolfwalker, on 01/26/2009, -0/+31this should help give some renters a better choice in housing.
- Alphabet, on 01/26/2009, -3/+32true, but you're missing out on dorm life, which is one of the best things about college. You get to meet tons of people, make new friends who will be around throughout your college years, meet girls, pull off dorm pranks, etc.
- honey54, on 01/26/2009, -1/+27I'm a landlady. The prices on our apartments haven't budged since 1998--because we have been more interested in keeping our apartments full than in making a quick buck. We have waiting lists for vacancies...
- killahwhale, on 01/26/2009, -0/+22this is good news for me, i am in the market for one
- TheTaoOfBill, on 01/26/2009, -0/+20Oh I didn't miss out. I went to the dorms for a year and I'd recommend everyone do the same. It's a great way to start your college experience and meet your first friends in what for most people is a completely new life. But after this year I will be moving into an apartment. And my room mates will be the friends I've made in the dorm.
- gwaggy12, on 01/26/2009, -0/+14It makes sense that luxury apartments would be hurting, but with so many foreclosures, it seems like more people would be renting. The article makes a good point, saying that there are fewer renters because people are taking on roommates and moving in with family members, and you can't argue with the numbers, but it seems like lower-rent places would have more customers.
- roctimo, on 01/26/2009, -0/+12Damn, I wish I was your tenant....
...literally - that was not a veiled sexual comment. - inactive, on 01/26/2009, -1/+12If you're in an apartment now this is your BEST time to GTFO and buy a house. Assuming you aren't buying a house and an investment first and a place to live second. It should always be the other way around.
- DreadPirate, on 01/26/2009, -1/+12Wish this would happen in Philly - my landlord just told me last month that my rent is going up $60 a month when my lease runs out in September. I'm already looking for a new place to live.
- chicagojack, on 01/26/2009, -7/+17Duh
- borez, on 01/26/2009, -3/+12Why Duh? As house prices fall, rents go up mate. Period. Sometimes the obvious is well... not that obvious till you think about it.
- emailowndme, on 01/26/2009, -0/+8Something bugs me about this article. It doesn't make sense economically.
As people are forced from their homes (foreclosures, falling home values, etc) they are forced to live somewhere. I would assume they pick up an apartment somewhere, so in my mind, it seems that the demand for low cost shelter is up, and therefor the prices of said product should also be going up.
Yeah, anyone who read the article care to illuminate me as to how apartment prices are falling instead of rising in this current economic climate? - ksadya, on 01/26/2009, -0/+8+1 for your kindness to humanity.
- inactive, on 01/26/2009, -2/+8Low rents mean even less maintenance, I suppose this economy will create new urban ghettos.
- ngmcs8203, on 01/26/2009, -2/+8I'm with borez here. Just last week I was hearing reports (not for the first time over the last 6-months) regarding rental rates being at premiums.
- cubicledrone, on 01/26/2009, -8/+14There is no weapon the rich employ to improverish the poor more powerful than rent.
Rent is protected revenue. It is illegal to be homeless, therefore for anyone who cannot afford a home, they must rent. In other words, for any non-homeowner, it is illegal NOT to rent.
Rent never goes away. Rent builds nothing. Rent provides no equity. Rent gives the tenant no advantages and gives the landlord all of the advantages. Rent has no tax benefits. We have a minimum wage, but no maximum rent, which guarantees a steady population of people who cannot afford their own place to live.
Dollar-for-dollar, there is nothing, absolutely NOTHING, that is as expensive as a rented apartment. and yet, rented apartments are where we expect our young adults to start building their futures.
For what it cost two years ago to rent a one-bedroom ***** apartment, one could pay the mortgage on a five-bedroom house with a pool. - cubicledrone, on 01/26/2009, -0/+6"Yeah, anyone who read the article care to illuminate me as to how apartment prices are falling instead of rising in this current economic climate?"
Because foreclosures go on credit reports, which are reviewed by the property manager (employed by a property management company because there is no such thing as landlords any more) and prospective renters are DENIED unless they are perfect human beings.
Basically this country is not your friend unless you are rich. - smcole45, on 01/26/2009, -0/+5In the article, the "effective rent" rates seem a little on the high side. Seattle, for example, was almost 1200 dollars. That's fine for anybody making the median income of about 45k, but anybody who is making less than that is going to be crammed into smaller places, which may be going up in rent (mine is too). Those at the bottom (like going to McDonald's? Yeah, that guy behind the counter) are still being squeezed pretty hard.
There is definitely more to this story, it's not all happy cheap rent right now. - Alphabet, on 01/26/2009, -1/+6That's great. In that case, if you find enough people, I'd try to find a house to rent next year. It's even cheaper than an apartment and is much much better. It's what I did during my 3rd year of college and on. Dorm life > rent home > rent apartment
Pros:
1. Cheaper than an apartment; in our case, we saved ~50% in rent
2. More parking space for everyone AND guests
3. More living area, not as cramped as an apartment
4. Don't have to listen to ***** neighbors through thin walls
5. You can have people over; apartments are too small for guests and meetings
6. You don't have to worry about people stealing ***** from you; several of my friends' apartments got broken into and their computers/laptops stolen. If you're a college student, you're easy prey for thieves since they know you have electronics and know when you're not there.
Cons:
1. You have to mow the lawn (we hired someone to do it for us with the money we saved by not renting an apartment) - finger11, on 01/26/2009, -0/+5I concur. I live in Arlington right next to a metro in a high quality apt building and I originally signed a lease last July, broke it and signed for another, same layout different floor in Oct. because it was almost $500 cheaper a month. Now everything is much more expensive.
- xLSDx, on 01/26/2009, -0/+5Maybe ghetto blasters will make a comeback too
- crawfishsoul, on 01/26/2009, -0/+5I don't know anything about Santa Clarita but it seems that your $100,000 house is theoretical only.
Santa-Clarita.com says the median home resale value in 2006 was $603,492. Sure it has probably come down recently but not that much. - BESTenemy, on 01/26/2009, -0/+5 Where are the rental rates falling and why? They are falling in areas that had the biggest real estate bubbles.
I listen to a financial talk radio here in Seattle and people call in every day asking the exact same question: "What should a person sitting on multiple properties do when values start to decline?" They get the same template answer from the army of trained advisor monkeys: "Hold. Don't sell. The market's gonna recover. That's a guarantee!" Personally the word "guarantee", in the current economic environment makes me want to rip the head off of whoever is saying it and piss down their neck hole.
Every time the "poor" caller comes to the conclusion that in order to continue speculating he has to rent out the apartments. The media monkey then gets a banana for sending yet another person astray. Their job is to keep people from walking away from properties, to keep properties out of foreclosures and to keep the housing inventory data from registering in the general housing statistics. If the speculator chooses to hold and wait for the appreciation, then the losses are his and not the bank's that pays the radio show to issue investment advise. The average number of properties per caller is 5.
So, each speculator that used to sit on 5 houses or apartments waiting for them to appreciate, not letting people in, keeping everything sparkling clean is now willing to bargain. He's concerned about land taxes and paying other sorts of fees. He brings 5 real estate units to the market that were supposedly inhabited and accounted for, until now. At the same time as that is happening, other people either leave the bubble State (ex: California lost 144 000 people last year to inter-state migration), or get so low in the employment food chain that they are too poor to afford rent and have to move in with their relatives or go looking for a dry spot under a bridge to set up their tent.
The rental market gets hit with a surplus of units and prices fall due to rise in supply against the falling demand. People going through foreclosures and begining to rent are hardly a dent, only generating a fraction of demand for the multiple property units of every heavily leveraged wiped out speculator.
Not every state has had a major housing bubble. Those that didn't may see a rise in rental rates, especially if they get an influx of migrants leaving the neighboring bubble states.
Initially, the housing bubble states will see reductions in rents, while others won't. Eventually as unemployment numbers mount and there are even less people capable of paying rent, the market will have to adjust lower. The unemployment "fun ride" has barely stated. Expect rents to fall and vacancy numbers increase, both in commercial and residential markets. You ain't seen nothing yet. - paperclipsNsoup, on 01/26/2009, -0/+4Unfortunately in Santa Clarita apartment rent is staying about the same..
$1800-$2200 for a 3 bed. Now if you want to live in the ghetto part then you can save yourself a whopping $200, but your car might get broken into.
I'm opting to buy a house. House prices have fallen so sharply that if you can come up with a 10% down (and your approved for a loan) your mortgage is less than rent. You can get $100,000 house with a 30 year fixed and your mortgage is only about $500-$600 - Kronos6948, on 01/26/2009, -0/+4Agreed. Mine went up too. They're allowed to raise rent by a certain percentage (can't think of it now), but they're allowed by law to do it. I guess they also take into account how many people are trying to move in.
One thing to keep in mind is how many people ended up taking a loss on trying to sell a house that they could no longer afford who ended up moving into an apartment. - ltethe, on 01/27/2009, -0/+4Meh... But you know what... I also don't have to do a damn thing for this place maintenance wise, and I can leave relatively easily.
Some of us care about wealth, and some of us like to be able to vanish into the night at the drop of a hat.
Nothing wrong with renting, you just got to have a different priority set. - punchinelli, on 01/26/2009, -0/+4Definitely not the case here. Our rent went UP in our last complex 6 months ago - the landlords said they planned on raising it even more a year from then if the housing market stayed in bad condition. Must be a regional thing.
- Adamlite, on 01/26/2009, -0/+4I changed my mind. I don't hope you're qualified to dispense investment advice, I hope people are smart enough to ignore unsolicited investment advice on Digg.
- treed, on 01/26/2009, -1/+4havek23: Sure if you have a down payment.
- Nerys, on 01/27/2009, -0/+3its amazing that people consider 5% to be good.
anything over 4.8% apr EQUALS well over 100% total interest!
that means a $150,000 house will cost you $300,000 +
HOW is this legal? - WiredLain, on 01/27/2009, -0/+3But you have to take into account hidden costs like property taxes, maintenance, yard work, etc.
- DirtyVicar, on 01/27/2009, -0/+3It's disappointing we can't pay you teachers enough to get you a good house. I hope you're not in Texas and your school district is spending millions on a stadium.
- KainDL, on 01/26/2009, -0/+3This seems counter-logical to me. If the price of something is on a dowward trend, you want to buy as little of it at that moment as possible, ie getting a short term lease because it's very possible that these prices will continue falling and therefore you'll be able to negotiate an even better deal 6 months down the road.
- dexx4d, on 01/27/2009, -0/+3I think that as this trend continues, people may also move back out of the cities. If you live in the country on some farmable land, you can at least keep eating.
- mr0nine2five, on 01/26/2009, -0/+3I've talked to several apartment locators and real estate agents here in Houston over the past few months. Ike hit us pretty badly. I can't even guess what percentage of the population lost their homes, but it is large enough. Since then rates have gone even higher, and its more difficult to get into an apartment. Everyone wanted to get an apartment near their old home, but there's now about ~%98 occupancy for the entire South Houston area. Its making it difficult for anybody to get someplace to live in the area.
I'm sure that if we hadn't had Ike, we would have made this list. We made one a few months back as one of the cities least affected by the current economic situation.
Oh well. Houston trudges forward. - FredFredrickson, on 01/26/2009, -0/+3ou almost got the description right, trentmonica.
- HibikiRush, on 01/26/2009, -0/+3Dude I just got laid off in October and haven't found a job since. It's happening to people everywhere else too. It's in your BEST interest to STFU.
- punchinelli, on 01/26/2009, -0/+3Not sure where you went to school, but in our town it was always significantly cheaper (like, 400% cheaper) to live on campus than in an apartment. Taking tuition out of the costs of our total due per semester, the rent ended up being around $200 a month for your room - in comparison to no less than $700 for a one BR apartment (and that would be a dump). And that $200 included cable internet, cable TV, and electric. And water.
- MacEnvy, on 01/26/2009, -0/+3Yup, here in Silver Spring rent's going up. They just increased my parking fees too.
- MsArtGeek, on 01/27/2009, -0/+3You can't seriously expect us to be jealous.
- cheezintern, on 01/26/2009, -0/+3All these foreclosures and people losing their houses, I'd think the opposite would happen. Where is everyone living?
- EricAnderton, on 01/26/2009, -0/+3I can also back up MacEnvy. The rent here in Silver Spring is criminal. The market rate is on the rise, and most properties are starting to charge extra for amenities that they used to just throw in.
- Balanced, on 01/26/2009, -0/+3A lot of people may be looking at moving in with family or similar.
- ksadya, on 01/26/2009, -0/+3It may be the best market conditions (ever before and ever after), but it may not be the best time for //you// to buy a house. Are you planning on moving in less than 8 years? What if you get a better job, or change careers? You'll be stuck in a house.
Homes that cost in excess of 400k, which is still the majority in SoCal, are not something you want to enter into lightly. Pay might be promising, but there seems to be a high attrition rate in SoCal jobs.
Your life situation must be stable and permanent. How many people on digg want to live in the same city, let alone the same part of town, for the next 8+ years? - r00fus, on 01/26/2009, -0/+3You know what else is insane when you look at historical rates? Job losses, companies failing and banks running out of cash.
If your employer will be around in a year or 5, and you are sure they will still employ you, then go ahead. But for me, I surely am not certain, and I consider myself highly employable. - kevine, on 01/27/2009, -0/+2Here's what's happening and why people are saying it doesn't make sense, or they're seeing the opposite:
Houses are being foreclosed. However, a lot of people are still living in those houses. And people who were renting are buying those houses.
Sure a lot of people are forced out, but end up consolidating...moving back in with parents or doubling up with siblings, or generally taking on roommates. Few people move out of a house and then find an expensive apartment...and are able to keep paying for the apartment.
While there may be a temporary surge in renters in some areas and at some price points, many people are downsizing. So you have renters who have been laid off, or pinched and are looking to move into lower rent apartments. So in a town with high rent apartments and low rent apartments, the low rent apartments will increase in rent (for a while) while the high rent apartments decrease. This is especially true for high rent bachelor apartments versus low rent family units.
But eventually, in the end, rent in general goes down as consolidation occurs and everyone is looking harder to pay less. - robopuppy, on 01/26/2009, -0/+2"but with so many foreclosures, it seems like more people would be renting" - well, you might think that you'd need some sort of line of credit to actually prove that you can pay for the apartment, and I doubt a giant foreclosure on your credit report would help.
In all seriousness, my lease was just up a month ago and I asked my apartment place what the new price would be. They indicated that it would be an insane price jump but that I'd have to wait while they negotiated with the mother ship or whatever. They waited until 3 days before the lease was up to tell me that the rent hike would be about 20% due to the current economic conditions. I laughed and asked why that made sense. Admittedly, it doesn't at all! I ended up getting a place that was 40% cheaper. - ScottoGato, on 01/27/2009, -1/+3I felt a great disturbance in the Force, as if millions of diggers suddenly left their parents' basements and were suddenly silenced. I fear something terrible has happened.
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