Bay Area Rental Prices -- An Explitive-Filled Rant

[C. K.]

Next stop - Living in a van by the river.

Ahaahaa!

[chardog]

Next stop - Living in a van by the river.

I hear riverfront van parking spots in the Bay Area are $1300-$1350 per month. :)

[cats]

So, this thread got me curious, I went on CL to see if our complex is currently advertising vacancies.  They are.  A studio that is identical to ours (two doors down) is going for $250/mo more than we currently pay.  We only moved in this past March, at which time it seemed they were not too overwhelmed with applicants because we were able to get them to delay our move-in date by a week, and they were running a move-in special (get 1/2 off first month's rent, yay).  Now I'm a) freaking out about what's going to happen to our rent when our lease is up (we're expecting it will go up, but hopefully not by $250!), but also b) wondering if you have happen to have chosen a busy time of year to look for a place?

Yeah, there's a huge difference since basically early 2012

I should clarify that when I say "this past March", I mean March 2013, so that's a $250/month difference in the advertised price in 6 months time, which in our case is *well* over 10% (we pay $1350).  I realize that the market is crazy right now, but that level of change suggests to me that there may be some seasonal cycling in prices going on as well.

I should clarify that market went crazy in early 2012.  So an increase between March 2013 and now also makes sense.

I just thought of this thread because....dun dun DUN...an envelope was taped to our door today.  The contents?  A notice that our rent will be going up in April, by $200.  So, less than what I was seeing advertised this summer, but still a little more than I was expecting (based on some yelp reviews I had found for our complex, I was expecting more like $100-150).

While this wasn't totally unexpected, I feel the need to revive this thread to bitch about it.  A freaking FIFTEEN PERCENT INCREASE?!@#!@$!@  WTF@$@#@!!!!

I did notice that our neighbors also have an envelope taped on their door, so I might go over and say hi to them tomorrow and compare notes.  From some quick CL research I think this increase is pushing the upper limits of reasonable (even for the area).  Sigh.  Bay area folks, has anyone had any luck negotiating rent with a large-ish and impersonal rental outfit?  Is it even worth my while?  I doubt we would be able to get much more than $50/month shaved off.

On the bright side, even with the increase, the boyfriend and I will still both be paying less in rent here than in our previous separate locations.  Still, I'd better start angling harder for a raise/promotion at work!!!

[Kriegsspiel]

I just read a blog post titled "Why I'm Moving My Business From San Fransisco to St. Louis"

http://needwant.com/p/im-moving-san-francisco-st-louis/

It mostly supports James' point, but it's interesting reading. And the pictures of St. Louis are very cool.

[4alpacas]

So, this thread got me curious, I went on CL to see if our complex is currently advertising vacancies.  They are.  A studio that is identical to ours (two doors down) is going for $250/mo more than we currently pay.  We only moved in this past March, at which time it seemed they were not too overwhelmed with applicants because we were able to get them to delay our move-in date by a week, and they were running a move-in special (get 1/2 off first month's rent, yay).  Now I'm a) freaking out about what's going to happen to our rent when our lease is up (we're expecting it will go up, but hopefully not by $250!), but also b) wondering if you have happen to have chosen a busy time of year to look for a place?

Yeah, there's a huge difference since basically early 2012

I should clarify that when I say "this past March", I mean March 2013, so that's a $250/month difference in the advertised price in 6 months time, which in our case is *well* over 10% (we pay $1350).  I realize that the market is crazy right now, but that level of change suggests to me that there may be some seasonal cycling in prices going on as well.

I should clarify that market went crazy in early 2012.  So an increase between March 2013 and now also makes sense.

I just thought of this thread because....dun dun DUN...an envelope was taped to our door today.  The contents?  A notice that our rent will be going up in April, by $200.  So, less than what I was seeing advertised this summer, but still a little more than I was expecting (based on some yelp reviews I had found for our complex, I was expecting more like $100-150).

While this wasn't totally unexpected, I feel the need to revive this thread to bitch about it.  A freaking FIFTEEN PERCENT INCREASE?!@#!@$!@  WTF@$@#@!!!!

I did notice that our neighbors also have an envelope taped on their door, so I might go over and say hi to them tomorrow and compare notes.  From some quick CL research I think this increase is pushing the upper limits of reasonable (even for the area).  Sigh.  Bay area folks, has anyone had any luck negotiating rent with a large-ish and impersonal rental outfit?  Is it even worth my while?  I doubt we would be able to get much more than $50/month shaved off.

On the bright side, even with the increase, the boyfriend and I will still both be paying less in rent here than in our previous separate locations.  Still, I'd better start angling harder for a raise/promotion at work!!!

We didn't have any luck negotiating our current apartment, so we moved into a less expensive apartment in the complex (with 2 weeks free rent).

[dragoncar]

I know some people with luck negotiating... It can't hurt but you probably won't get much shaved off

[Jack]

I just read a blog post titled "Why I'm Moving My Business From San Fransisco to St. Louis"

http://needwant.com/p/im-moving-san-francisco-st-louis/

It mostly supports James' point, but it's interesting reading. And the pictures of St. Louis are very cool.

Everything that article says about St. Louis also applies to Atlanta, but Atlanta has a better climate (IMO) and is closer to mountains and beaches.

[Kriegsspiel]

Ok.

[Shor]

is it bad that just from reading this thread, I want to purchase a house, and put the rent to some reasonable below-average level and just rent it out to a coworker, or a mustachian; someone I know, someone I can trust to take care of the property while we help each other continue existing like civilized, sociable human beings.

Why can't we just live side by side and appreciate that we are two reasonable people meeting each others needs in an otherwise unreasonable, insane world of price-gouging, self-destructing, tenants vs. landlord silliness :(

[Grateful Stache]

Why can't we just live side by side and appreciate that we are two reasonable people meeting each others needs in an otherwise unreasonable, insane world of price-gouging, self-destructing, tenants vs. landlord silliness :(

Well said.

[foobar]

And has the exact same problems of a small scene and not a deep talent pool.  Doesn't matter if you plan is to be 5 guys working hard. It does if it is to be 500 guys. As an employee the disadvantage of the bay area is that it is crazy expensive and the pay really doesn't cover it. The plus is that you can walk away from you job and have 300 places within 10 miles to apply for a new one.

The living is also very mustachian. There are not a lot of places that consider a 3/2 1400sq ft apartment spacious (the standard is more like 1200). And having 1/4 acre backyard is huge. You move to some place like St. Louis and you might be tempted to live in some 3k house because it is half the price of what your were paying. :)

I just read a blog post titled "Why I'm Moving My Business From San Fransisco to St. Louis"

http://needwant.com/p/im-moving-san-francisco-st-louis/

It mostly supports James' point, but it's interesting reading. And the pictures of St. Louis are very cool.

Everything that article says about St. Louis also applies to Atlanta, but Atlanta has a better climate (IMO) and is closer to mountains and beaches.

[Kriegsspiel]

More reading material:

The shadow of success: Facing the facts on Silicon Valley’s affordable housing crisis

It’s Settled: Silicon Valley Is Dying. So What’s Next?

Google confirms expansion to Bakery Square 2.0 This is a very nice area now. there is a giant apartment complex under construction across the street.

[dragoncar]

It’s Settled: Silicon Valley Is Dying. So What’s Next?

This one gave me brain cancer.  And I like Pittsburgh.

[netskyblue]

Rent prices out there do seem crazy as hell.  But to put it in perspective, I'm paying $750/mo for a 2 br in Iowa, and that's a GOOD price where I'm at, and it's still 40% of my take home pay.

[electriceagle]

Do you sense that there's any sort of political movement afoot to relax the restrictions on new construction?  It seems like all the pissed-off renters ought to have some sort of clout.

I'm not sure there's much restriction.  There's about 5 new buildings worth of apartments going up right next to mine.  And a few more down the street a little ways.  They're building a lot right now, it's just that all the new construction is priced at a premium, so that doesn't do much to ease prices on the lower end.

Prices usually plummet when all of those construction projects finish at once. I'm not sure theres enough empty real estate in SF for a big plunge, but I certainly expect it in the south bay.

[Kriegsspiel]

Schwab Moving 1,000 Workers Out of San Francisco, Citing Costs

Jennifer Booton. Rawr.

[dragoncar]

Do you sense that there's any sort of political movement afoot to relax the restrictions on new construction?  It seems like all the pissed-off renters ought to have some sort of clout.

I'm not sure there's much restriction.  There's about 5 new buildings worth of apartments going up right next to mine.  And a few more down the street a little ways.  They're building a lot right now, it's just that all the new construction is priced at a premium, so that doesn't do much to ease prices on the lower end.

Prices usually plummet when all of those construction projects finish at once. I'm not sure theres enough empty real estate in SF for a big plunge, but I certainly expect it in the south bay.

There's not enough for a plunge... estimates are that we need 5k units per year for the next 5 years to cover demand.  Current construction is a fraction of that 5k, and is a result of permits issued in prior to 2008.  Once they finish, it will take a while to re-prime the pipeline.  Maybe by then, the next recession will have hit...

[Dicey]

Great news, Eric! I enjoyed following this thread and am glad you made your own success.

This suggestion is a day late and a dollar short for you this time, but I'll throw it out there for future use or for someone else who's in a similar situation in the Bay Area. I'm recently retired as a rep for a major carpet mill, and I covered most of the Bay Area for about a dozen years, calling on all types of carpet and flooring stores. Many of the owners and salespeople have rentals themselves. They also cultivate property managers and individuals who own rentals. They know when properties are going to be available because they get the flooring jobs before the properties are listed. Sidenote: At one of my old accounts, the carpet showroom was actually kind of a side business. The owner (a former pro football player) had the retail operation, plus he owns over 500 Bay Area rental homes. Runs them both out of the same building. Smart dude.

I'd print up a generic rental application form (I don't have to tell you not to fill in the credit details-put "available asap"or somesuch.) and write a cover letter. Bonus points if you put a picture in the letter in which you (and your family, if applicable) look neat, tidy, quiet and above all, trust-and-credit-worthy, lol. (Crazy isn't it? They don't provide photos but you have to.)

Then, I'd search out every flooring store and carpet installer in your desired area. Go in and talk to them; you'd be surprised at who and what they know. Make sure they are not with a customer or you'll just piss them off, because they are not busy most of the time. Think weekday mornings if your schedule is flexible. Take their card, give them several of yours plus your info and ask them to keep you in mind if they hear of anything. If you make a good impression, you'll hear something from one of them. Circle back around occasionally until you find something to let them know you're still interested. Out of the box thinking, and a little extra effort, but it could be a big payoff if you can get there before their ad ever gets placed.

[Peony]

Diane C, that is an interesting suggestion. FWIW, I can confirm that the guys at my local flooring store would have known before anyone else that my BF was fixing up a 3-family rental. We spent a *lot* of time in there considering vinyl vs. laminate vs. wood.

[clarkfan1979]

Congratulations on finding a place to live. I left So Cal 8 years ago because it was too expensive for me at that point in my life. Since then I finished grad school and bought two houses in foreclosure. Now with a higher degree, higher pay and two rentals cash flow positive, I'm looking to move back. Anything is possible if you create a plan. Instead of counting your days until you leave, i would suggest that you create a plan on how you can stay. You sound like a smart guy willing to put in the work. I hope you figure it out.