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Here Is The Average Cost To Rent A 2-Bedroom Apartment In Your City

Tyler Durden's picture




 

We have been pounding the table since 2009 that without a sustainable increase in average disposable income, the US housing market - that core driver for "wealth effect" and net worth for the "rest of us", i.e., those non-1%ers whose net worth is not tied up in various rigged, manipulated capital markets - will never recover, and as a result, neither will the US economy.

Four dead-cat bounces, and yet another fading bubble in home prices later, this has again proven accurate, with the percentage of Americans owning houses dropping to levels not seen in 19 years.

 

The inverse, or the percentage of Americans renting, promptly manifested itself, and is essentially a mirror image of the chart above.

 

To be sure, the logical tradeoff to unaffordable housing, one which also was expected from the beginning, and has manifested itself quarter after quarter, is a relentless increase in median asking rents to new monthly record highs across the nation...

... and especially in the northeast.

 

Ironically, the rental price surge, one which the CPI calculation stubbornly does its best to ignore, is taking place even as median rental income is the lowest it has been in over two decades.

 

But what is even more surprising is the clear dispersion among socioeconomic...

 

and ethnic classes...

 

... when it comes to a propensity to rent, suggesting that the marginal renter is increasingly the most financially challenged, which in turn also begs the question: how much longer can rental prices keep rising?

Still, as Mother Jones notes, "With more people trying to get into same number of units you get an incredible pressure on prices," says Shaun Donovan, the former secretary of housing and urban development for the Obama administration."

And yet, surely there is a limit to how far the average American can be pushed: today, half of all renters pay more than 30 percent of their monthly income in rent. For 28 percent of Americans, some 11.3 million, more than half of their salaries go toward rent!

One thing is clear: until there is a reason to reverse the own-to-rent trend, one which will not appear until median consumer incomes resume growing for all, not just for the uber-wealthy, this trend will continue until finally Americans are priced out of not only owning, but also renting.

*   *   *

So with all that said, and with record rental expenses already forcing millions of Americans to have far less disposable income (hint to the econogeniuses in Princeton: if tens of millions have to spend the bulk of their income on rent, that means there is far less disposable income left for everything else, which also precludes benign inflation from appearing... not to be confused with hyperinflation from monetary debasement) for everything else once the monthly bill for the roof above one's head is paid, here is a breakdown of 25 selected US metropolitan areas, ranked from most to least expensive, how much it costs to rent a two-bedroom apartment (one can only assume the $1,440 price listed for New York is based on some non-GAAP, magical numbers that exclude reality).

 

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Tue, 08/12/2014 - 14:18 | 5082816 The Axe
The Axe's picture

No inflation  move on....go get $5 coffee

Tue, 08/12/2014 - 14:18 | 5082818 quintago
quintago's picture

BS numbers. A decent 2bd in SF is $5k

Tue, 08/12/2014 - 14:25 | 5082833 Manthong
Manthong's picture

In case some of the jamokes out there have not figured it out..

It is August.. and 60 degrees F in the heartland..

Global warming is making the jungle natives restless…

Like they would do regardless of how many degrees it is hot..

Or how many degrees they are north or south of the equator.

 

oh, sorry... I don't want to appear racist..

just substitute Eskimo for the jungle native term above.

Tue, 08/12/2014 - 14:27 | 5082875 Pladizow
Pladizow's picture

For my city the #'s are atleast 30% higher than the chart!

Tue, 08/12/2014 - 14:30 | 5082898 gh0atrider
gh0atrider's picture

What is happening with attic prices??

Tue, 08/12/2014 - 14:34 | 5082913 Manthong
Manthong's picture

I just down-voted myself.. I have no clue..

Time to pick up on some great real estate in Ferguson.. or maybe East St. Louis.

It’s the only good thing to do for the rentier class.

Tue, 08/12/2014 - 14:36 | 5082925 BlindMonkey
BlindMonkey's picture

Eh!! You're a riot.

Tue, 08/12/2014 - 14:41 | 5082949 Manthong
Manthong's picture

yep.. it's a blast

almost as good as being a president on a two week golf outing in a very.. very very very very high rent district.. 

(Just ask Bill and Hillary)

Tue, 08/12/2014 - 14:49 | 5082987 max2205
max2205's picture

Bmore is fucking rediculiousm

Tue, 08/12/2014 - 14:51 | 5082993 Manthong
Manthong's picture

But y’know.. how can you blame someone who has to pay an Obama tanning tax when there is no whitening tax anywhere ????????

Tue, 08/12/2014 - 14:55 | 5083023 Manthong
Manthong's picture

OK.. so I don’t pay any tanning tax as just about all the tanning places I know of have been put out of business by the Obama tax (kind of like the idiots did to the yacht business after Clinton got in).

I just lay out to deepen the complexion.

So what are the bro’s doing to lighten up ???

Tue, 08/12/2014 - 15:20 | 5083172 BKbroiler
BKbroiler's picture

I don't know who made that chart, but the rent for 2br in NYC is about at least twice that...

Tue, 08/12/2014 - 15:31 | 5083248 negative rates
negative rates's picture

Yea we're ready for the Booker T check now, please, pretty please.

Tue, 08/12/2014 - 15:50 | 5083312 knukles
knukles's picture

One car detached unheated unairconditioned garages circa 1937 are the way to go, folks.

Them numbers is way low ....

Tue, 08/12/2014 - 15:53 | 5083367 wee-weed up
wee-weed up's picture

 

 

In some places, rent costs are beginning to follow the inflated medical care cost model - rising costs due to Gov't involvement... i.e. Section 8 housing vouchers.

Tue, 08/12/2014 - 16:09 | 5083487 DaveyJones
DaveyJones's picture

or just one car

Tue, 08/12/2014 - 22:49 | 5085491 old naughty
old naughty's picture

some other ideas:

http://tinyhouseblog.com/

 

Tue, 08/12/2014 - 14:50 | 5082990 James_Cole
James_Cole's picture

1400$ for ny? 2k for sf? Something is amiss with this chart..

Tue, 08/12/2014 - 15:00 | 5083054 Raymond K Hessel
Raymond K Hessel's picture

....meaning half the rents are lower and the other half are higher, on average.

Tue, 08/12/2014 - 15:10 | 5083112 James_Cole
James_Cole's picture

Yeah I get how it works but these numbers don't seem to reflect reality, pretty confident there are some tricks going into those figures. 

A bit of digging:

Despite historically high rents, New York City ranked lower on the list because rents were not broken out by borough, and because the city's non-luxury two-bedrooms are often rent-stabilized, a research analyst for NLIHC told the Wall Street Journal.

And compare:

http://online.wsj.com/news/articles/SB1000142412788732450740457859375368...

Tue, 08/12/2014 - 16:12 | 5083497 Thisson
Thisson's picture

These numbers are bullcrap.  Sure, the average in NYC is $1400 when you factor in areas FAR outside of Manhattan.  Using the Median instead of the Mean would give you a more meaningful result.  In Manhattan, the average 1BR apartment (forget 2 bedrooms!) is above $3000/month.  

Tue, 08/12/2014 - 16:19 | 5083537 Buckaroo Banzai
Buckaroo Banzai's picture

Everyone seems to forget that New York City is not just Manhattan. There are huge swaths of Brooklyn (and parts of Queens, SI, and the Bronx) that resemble a third world country that white people who don't wear a police uniform don't set foot in. Loaded with Section 8 and similar kinds of, um, affordable housing.

Tue, 08/12/2014 - 15:13 | 5083129 Citxmech
Citxmech's picture

The other part of the equation is that many of these areas (NY and SF for example) have rent control.  NEW apartments rent for far more than the average brought down by the folks that will only move out of the place they've lived for 20 years feet first.

Tue, 08/12/2014 - 15:14 | 5083139 James_Cole
James_Cole's picture

NEW apartments rent for far more than the average brought down by the folks that will only move out of the place they've lived for 20 years feet first.

Yeah, seems ridiculous to include rent controlled / subsidized in their sample. 

Wed, 08/13/2014 - 07:08 | 5086261 angela03
angela03's picture

What you are describing is the median, not the average. They are two totally different parameters.

Tue, 08/12/2014 - 15:16 | 5083124 toxic8
toxic8's picture

$1400 in NY... haha, maybe in East NY

Fuckin hipsters, drove rents through the motherfuckin roof

2 months rent, security and deposit plus brokers fee

Need 10gs just to move into a shithole

It's a wonderful life!

Tue, 08/12/2014 - 15:22 | 5083190 Hippocratic Oaf
Hippocratic Oaf's picture

Take your anger here............

 http://diehipster.wordpress.com/

 

 

Tue, 08/12/2014 - 17:52 | 5084182 Intoxicologist
Intoxicologist's picture

That's hilarious!

Wed, 08/13/2014 - 11:30 | 5087369 cockroachfuture
cockroachfuture's picture

"Cause they're borderline squatters, peg legged bastards
Jeans so tight make your balls say the password"

https://www.youtube.com/watch?v=rLP9bgU9XJU

Tue, 08/12/2014 - 18:03 | 5084236 ziggy59
ziggy59's picture

What year is this chart from? 1970s?

Tue, 08/12/2014 - 14:50 | 5082984 RaceToTheBottom
RaceToTheBottom's picture

Go for discounted retail purchases.  Also, maybe rentals overlooking retail outlets.  People pay for front row seats at the riots.  They can sell their photography to the media and police....

Just make sure you have a good inspection written into your purchase contract...

Tue, 08/12/2014 - 16:27 | 5083613 Hugh G Rection
Hugh G Rection's picture

Time for me to look through ancestry.com on my mother's side.  Got to be an Ashkenazim in there somewhere...

Seems our "representatives" don't care about preserving this Country, may as well sell my soul also and exercise that right of return.  I'll get a monthly draw from the suckers in the States, and free Safari packages throughout Gaza and the West Bank!

 

Just Kidding, Fuck Israel!

http://zionismsucks.com/2014/08/12/idf-snipers-target-pregnant-mothers/

Tue, 08/12/2014 - 20:42 | 5084916 ElvisDog
ElvisDog's picture

Those statistics are bullshit. Try to rent an apartment in Silicon Valley for less than $2000-2500 or a house for less than $3500-4000. Can't do it.

Tue, 08/12/2014 - 14:40 | 5082948 JRobby
JRobby's picture

The rent is too damn high!

Tue, 08/12/2014 - 18:12 | 5084265 RiderOnTheStorm
RiderOnTheStorm's picture

It won't be long and the only thing we will be able to afford is to pitch a tent in our pants, if you know what I mean.

Tue, 08/12/2014 - 15:24 | 5083197 AnarchyInc
AnarchyInc's picture

If you only pay $850 for a 2 bedroom in San Antonio, you're going to be murdered.

Tue, 08/12/2014 - 15:47 | 5083326 NOTaREALmerican
NOTaREALmerican's picture

That still counts as an apartment available.   The Trash Class are used to living like that.

Tue, 08/12/2014 - 20:48 | 5084940 Tall Tom
Tall Tom's picture

As a direct response to your arrogance (Trash Class???) I have taught a homeless man on how to construct a simple land mine. (They are the ones, after all, that get me my Lithium Batteries...)

 

You ought to have seen how pissed off he was after reading the comments on this thread and the Welfare Thread...

 

I also told him that he can bury it on a Rich Man's property.

 

The Revolution will eneter into the Rich Neighborhoods.

 

That may be the last time that the guy will enjoy his lawn.

 

PROJECT MAYHEM...

Tue, 08/12/2014 - 14:34 | 5082915 NOTaREALmerican
NOTaREALmerican's picture

Re;  BS numbers. A decent 2bd in SF is $5k

The article is NOT about the average price of DECENT apartments.  

Tue, 08/12/2014 - 14:35 | 5082923 Bastiat
Bastiat's picture

"BS numbers. A decent 2bd in SF is $5k"

They must be using metropolitan area numbers, in the case of SF, Bay Area.

Tue, 08/12/2014 - 15:48 | 5083331 knukles
knukles's picture

Bay Area = Oakland....  Oppps!

Tue, 08/12/2014 - 14:38 | 5082942 Urban Redneck
Urban Redneck's picture

Is your idea of a decent 2-bedroom better or worse than this...

(a 2-bedroom dump can be found for a little less than half that)

Tue, 08/12/2014 - 15:07 | 5083102 failure to perform
failure to perform's picture

$18,731.75 per month!!!

Tue, 08/12/2014 - 17:30 | 5084046 Urban Redneck
Urban Redneck's picture

At the start of the financial crisis in 2007 you could rent a lake-front flat in any of these three buildings in Geneva with 3000-4000 sq ft, 12ft ceilings, ornate inlaid parquet floors, upholstered walls with gold leaf mouldings... basically a mini-Versailles for that price, now you can rent a decent/nice 2-bedroom apartment for the same price.

And they say money-printing doesn't have consequences.

Tue, 08/12/2014 - 18:16 | 5084276 max2205
max2205's picture

Oh yeah....fuzzy wall!

Tue, 08/12/2014 - 15:02 | 5083080 luckystars
luckystars's picture

rent control must be figured in.

Tue, 08/12/2014 - 18:13 | 5084275 RiderOnTheStorm
RiderOnTheStorm's picture

And Pest Control!!

Tue, 08/12/2014 - 15:16 | 5083150 Drop out
Drop out's picture

Well, that was when you entered your comment. Now it is $5500.

Tue, 08/12/2014 - 15:19 | 5083166 caconhma
caconhma's picture

What do you mean decent? I don't believe there are too many could/would  pay $60K+/year just for renting a two-bedroom apartment. 

The same goes for New York or any other cities.

Tue, 08/12/2014 - 15:59 | 5083419 ajax
ajax's picture

 

 

"BS numbers. A decent 2bd in SF is $5k"

Damn right quintago and correct the price for 2 bdrms in NYC as well. You might find a studio in NY for 1,500.-- but nothing larger.

Tue, 08/12/2014 - 16:19 | 5083533 Syrin
Syrin's picture

My thoughts exactly, plus they aren't apples for apples.   You can get about 1200 square feet  for a 2 bedroom apt here in Nashville while in NY that  "two BR apt" would be a total of 250 square feet, and have plumbing and electricity from 1812.

Tue, 08/12/2014 - 17:34 | 5084093 soylentgreenispeople
soylentgreenispeople's picture

San Francisky? So How Did You Came, Did You Drove or Did You Flew?

Tue, 08/12/2014 - 18:16 | 5084285 RiderOnTheStorm
RiderOnTheStorm's picture

You sound just like the kind of guy that would rent a $5K a month apartment.

Tue, 08/12/2014 - 18:39 | 5084383 Gohn Galt
Gohn Galt's picture

BS numbers, I was thinking the same thing.  I pay $2,500 for a 1 bedroom in NYC (plus another $300 for a parking space) and I don't live in Manhattan.

 

 

Wed, 08/13/2014 - 07:25 | 5086291 raybies
raybies's picture

Those are all weekly rents, right? Same as Australia then.

Wed, 08/13/2014 - 07:26 | 5086292 raybies
raybies's picture

Dup

Tue, 08/12/2014 - 14:28 | 5082878 NOTW777
NOTW777's picture

LOL so reassuring that our gov can confirm - no inflation; dont worry be happy until ISIS comes knocking

Tue, 08/12/2014 - 15:20 | 5083182 Hippocratic Oaf
Hippocratic Oaf's picture

Before I left NYC I was paying $5k for a 2BR

yes, I know, what fool would pay that?

That's one of the reasons I left.

Tue, 08/12/2014 - 18:16 | 5084288 RiderOnTheStorm
RiderOnTheStorm's picture

Maybe that's why they raised the rent, to get you to leave

Tue, 08/12/2014 - 16:26 | 5083599 Herodotus
Herodotus's picture

It's interesting that the best place (Lincoln, Nebraska) on the list is also the cheapest.

Tue, 08/12/2014 - 14:32 | 5082820 Kaiser Sousa
Kaiser Sousa's picture

FUCK YOU BERNANKE AND YOU 2 O'LE YELLER...

death to the Moneychangers.....

Tue, 08/12/2014 - 14:22 | 5082834 Antifaschistische
Antifaschistische's picture

Property "ownership" is a facade if the government can tax it away from you.

Tue, 08/12/2014 - 16:32 | 5083670 Syrin
Syrin's picture

Amen.   We all rent from the gov't, even those of us who paid off our mortgages and theoretically "own" our land and homes.

Tue, 08/12/2014 - 16:58 | 5083850 Berspankme
Berspankme's picture

I own my place free and clear. Cost me $760 per month taxes and maintainence another $400. Fuck you .Gov

Tue, 08/12/2014 - 17:42 | 5084132 greatbeard
greatbeard's picture

>> I own my place free and clear. Cost me $760 per month taxes

My F&C place costs $800 a year in taxes.  Of course, it's only 5 acres and 1,800 sq ft.  I could get that down a bit with an ag exemption for my orchard and pasture but it's not worth the hassle.

Tue, 08/12/2014 - 14:23 | 5082836 freedogger
freedogger's picture

And that's why I live in a Ford E150 Cargo van when I am working in the city. Looks like a boring work van, can pretty much park it anywhere and sleep all night. Usually in industrial areas near transit. Arrive at work and I shower there.

Tue, 08/12/2014 - 14:29 | 5082890 edifice
edifice's picture

I considered renting a garage for $150 or so and just parking in that, to sleep at night. Do the 3 S's at the gym. The gotcha for me is, I have a Honda Civic Coupe (very small) and at 6 feet tall, I cannot physically sleep in the thing.

You can take the rent prices on the chart and effectively double them. That is the true cost of rent in many of these areas.

Tue, 08/12/2014 - 14:31 | 5082903 walküre
walküre's picture

how do you even drive it?

Tue, 08/12/2014 - 14:34 | 5082919 edifice
edifice's picture

There's enough space to sit upright to drive (even a semi-tall person like me), but the seats do not recline fully, and the back seat is too small to lay on.

Tue, 08/12/2014 - 14:59 | 5083051 Sokhmate
Sokhmate's picture

Try fetal position (for sleeping)

Tue, 08/12/2014 - 14:48 | 5082981 pods
pods's picture

Where there is a will, there is a way. I've shagged in a Tercel and I am over 6 feet.

pods

Tue, 08/12/2014 - 17:38 | 5084113 paulbain
paulbain's picture

--------------------

 

 

Edifice wrote:

The gotcha for me is, I have a Honda Civic Coupe (very small) and at 6 feet tall, I cannot physically sleep in the thing.

I have been sleeping in my Honda Civic for three years, except when I stay in the local, hypothermia shelter in winter.  OTOH, I am only 5'11'' tall.  For me, the key was to fold down the rear seat and use an air mattress (bought from Hudson Trail Outfitters) that campers use between their sleeping bags and the cold ground (highly recommended).

It took me quite some time to learn how to live homelessly, but I had no choice.  Even if I were to earn enough to rent, I would probably choose to remain homeless so that I can save enough money to buy more silver, guns, ammunition, etc.  I would also want to buy a van or SUV in which to sleep.  Sleeping in that Honda Civic is getting old.

-- Paul D. Bain

PaulBain@PObox.com

 

 

 

 

--------------------

Tue, 08/12/2014 - 18:32 | 5084360 edifice
edifice's picture

How do you get around the permanent address problem?

Tue, 08/12/2014 - 19:14 | 5084531 paulbain
paulbain's picture

----------------------

 

 

 

I have a mail box at the local Post Office.  I receive my Internet access from local libraries and coffee shops, I shower at my gymnasium, and I get food from local charities and from my employers:  Papa John's Pizza and Maggiano's restaurant.  I have made many other adjustments and tweaks to my living habits, e.g., I keep most of my belongings (e.g., clothing, books, papers) in a storage unit, not my car.

-- Paul D. Bain

PaulBain@PObox.com

 

 

 

-------------------------------

Tue, 08/12/2014 - 21:43 | 5085213 freedogger
freedogger's picture

I had a toyota corolla sedan that I cut the back seat out so my feet would fit in the trunk. I removed the front seat and had a bed that way. Wasn't at all stealth but I spent a few glorious weeks one summer learning how to windsurf in the gorge out of that thing.

Tue, 08/12/2014 - 14:30 | 5082897 walküre
walküre's picture

Genius!

Tue, 08/12/2014 - 14:34 | 5082920 tenpanhandle
tenpanhandle's picture

Translation:  I live in a van down by the river.

Tue, 08/12/2014 - 21:47 | 5085229 freedogger
freedogger's picture

Sometimes I do! Tonight its right beside the U-haul storage facility.

Tue, 08/12/2014 - 14:52 | 5082991 McMolotov
McMolotov's picture

Vandwelling. I haven't looked at all those white work vans the same since I heard of it.

Tue, 08/12/2014 - 23:47 | 5085663 jomama
jomama's picture

so YOU'RE that fucker always taking my spot

Tue, 08/12/2014 - 14:23 | 5082840 de3de8
de3de8's picture

Guess the kids will be home longer than I thought.

Tue, 08/12/2014 - 14:23 | 5082841 astoriajoe
astoriajoe's picture

2 BR in nyc for 1440?? seems a little light to me.

Tue, 08/12/2014 - 14:25 | 5082851 NoDebt
NoDebt's picture

They're talking about way uptown.  Like in Rochester, maybe.

Tue, 08/12/2014 - 14:50 | 5082992 rtalcott
rtalcott's picture

I've lived in Crapchester....you get what you pay for.

Tue, 08/12/2014 - 14:23 | 5082843 NoDebt
NoDebt's picture

We should call up the government and make them do something about this.

Tue, 08/12/2014 - 14:25 | 5082844 edifice
edifice's picture

I call bullshit. Denver is easily $1,500+ for a 2-bedroom. $960 might get you a 500 sq. ft. hovel.

Tue, 08/12/2014 - 14:36 | 5082929 NOTaREALmerican
NOTaREALmerican's picture

Re:  Denver is easily $1,500+ for a 2-bedroom. $960 might get you a 500 sq. ft. hovel.

That's why the article is about AVERAGE price.   Hovels are included in the average.  In fact,  there are MORE hovels than NICE apartments because there are MORE of the Trash Class than the top 20% who can afford NICE apartments.

Tue, 08/12/2014 - 14:38 | 5082941 youngman
youngman's picture

This includes the metro area..so Thornton, Lakewood are included..those old apartments filled with illegals....20 to a room...

Tue, 08/12/2014 - 14:25 | 5082848 q99x2
q99x2's picture

We ain't stupid. The collapse is coming. Homes won't be worth a plug nickel within a year.

Tue, 08/12/2014 - 14:28 | 5082885 takeaction
takeaction's picture

I think it is going to go the other way....prices just keep going through the roof.  Here in Portland Oregon...houses are skyrocketing...Rents are skyrocketing, food prices are through the roof...Gas is around $4.00 a gallon.  Last weekend I went out to look for another rental home...and a 1100 square foot home...in decent shape is around $220K to $250K that is up from $135K about 6 years ago...wow.  So again...I think the prices of everything just keep going and going...and I think the collapse will continue as it is...Just a slow milking of all of us for WAY longer than you think.  Enjoy each day my friends.  Give your family a hug...and some positive feedback today.  Watch the smile...

Tue, 08/12/2014 - 14:42 | 5082932 nope-1004
nope-1004's picture

Home prices are highly correlated with low interest and availability of credit.  While inflation is happening in consumables, home prices are directly proportional to ZIRP and easy credit.  It's an asset bubble.  Make no mistake, average house prices will return to meet what the average income can afford.  Laws of nature can't be manipulated forever.

House speculators and naive landlords will be wiped out.

 

Tue, 08/12/2014 - 14:57 | 5083028 Baby Eating Dingo22
Baby Eating Dingo22's picture

Immigrants will support demand for home purchases and rentals

Ten years ago, an Indian or Asian was a rare sight in my town

Now they're everywhere, shuffling in their sandals and pajamas like zombies in the streets of the slum they came from, and screw up traffic even more when they get beind a wheel  

Tue, 08/12/2014 - 15:51 | 5083359 Professorlocknload
Professorlocknload's picture

"Home prices and rents are highly correlated ",,,with real rates of inflation (devaluation.) Fixed it.

Wages are always lagging, but when they catch up, all hell is gonna break loose.

Got TP?

Tue, 08/12/2014 - 15:54 | 5083388 GaryTheSnail
GaryTheSnail's picture

$250???

I'd give my left Kidney for a $250k selling price on a house, are you kidding me?  Try $950k on for size and see how depressed you get.

Tue, 08/12/2014 - 17:09 | 5083907 de3de8
de3de8's picture

Yeah, that's the price for a cheep lot in my area, then add the structure.

Tue, 08/12/2014 - 14:24 | 5082849 takeaction
takeaction's picture

If you are a loandlord...guess what the best day of the month is??

.

.

.

.

The 6th.....Late fees BITCHEZ!!!!!

Tue, 08/12/2014 - 14:28 | 5082879 q99x2
q99x2's picture

The day that your eviction court case that cost you $65,000 finally gets your tenet out of the apartment.

Tue, 08/12/2014 - 14:31 | 5082899 takeaction
takeaction's picture

Not in Oregon...the process is quick...and clean.  And as a landlord...just do a credit check....and NO PETS...and you are really safe.  Then you charge, first last and a huge deposit.  Simple.  It is just like a cover charge at a club.  If people won't pay $5 to $20 to get in...You don't want them anyway.  

Tue, 08/12/2014 - 16:38 | 5082963 JRobby
JRobby's picture

Great little business plan you have there. Best of luck to you.I'm sure you are a fair landlord.

Here is the thing though: when you are doing well and things are good, as far as the internet goes, keep it to yourself.

And here's why: I am now obligated to tell you to pound sand up your ass.

SO: Go pound sand up your ass.

 

8 vs 8, sounds fair to me

Tue, 08/12/2014 - 16:50 | 5083803 sdmjake
sdmjake's picture

As someone around here said the other day:

"Have more than you show, say less than you know"

Tue, 08/12/2014 - 14:25 | 5082855 Joaquin
Joaquin's picture

So much BS studios start at around $3,000 in S.F.  2 Beds starts at around $4,000.   A two bedroom house in Bend Oregon is $1,700, 3 beds $2,200

Tue, 08/12/2014 - 14:25 | 5082857 tigercpa
Tue, 08/12/2014 - 14:29 | 5082883 bilejones
bilejones's picture

Presumably the NYC number includes all the boroughs.

Tue, 08/12/2014 - 14:37 | 5082928 IridiumRebel
IridiumRebel's picture

Take out Staten Island and East New York and you would see $2500 avg.

Tue, 08/12/2014 - 14:52 | 5082997 deja
deja's picture

$1400 even in the boroughs would be restricted to some pretty bad neighborhoods.  (And probably only a 1-bed at that.)

Tue, 08/12/2014 - 16:06 | 5083448 ajax
ajax's picture

 

 

Even Alphabet City became unaffordable for the average American slave wager - unless of course you want to live with 4 "roommates" just to be able to make the rent each month in NYC.

Tue, 08/12/2014 - 15:16 | 5082998 deja
deja's picture

<duplicate post removed>

Tue, 08/12/2014 - 15:01 | 5083064 pot_and_kettle
pot_and_kettle's picture

A LOT of rent-controlled apartments must be getting factored in - I know for a fact that these types can easily be 700/mo for a 2BR but you need to have had it passed down to you by your grandmother to your mother to you.

1440/mo gets you a studio in a crappy building in Brooklyn or Queens, tbh.

Tue, 08/12/2014 - 14:25 | 5082862 NOTaREALmerican
NOTaREALmerican's picture

As long as the underground economy isn't included things look bad.

Tue, 08/12/2014 - 14:25 | 5082863 Itchy and Scratchy
Itchy and Scratchy's picture

Deflation is the real enemy!

Tue, 08/12/2014 - 14:26 | 5082866 Deflating in Denver
Deflating in Denver's picture

Bogus. In Denver anything nice will run at least $1,500.

Tue, 08/12/2014 - 14:32 | 5082910 NOTaREALmerican
NOTaREALmerican's picture

Where does the article include the word "nice"?   Only the top 20% can afford "nice",  the Trash Class can't afford "nice", so the 80% of the apartments aren't "nice". 

Tue, 08/12/2014 - 15:38 | 5083280 toady
toady's picture

Are you a statistician? You seem to be stuck on defining'average'.

Tue, 08/12/2014 - 15:46 | 5083318 NOTaREALmerican
NOTaREALmerican's picture

No,  i'm stuck on people assuming the damn charts are about NICE and DECENT apartment for the top 20%.   The Trash Class is 70% of the population and probably 80% of the renters.  So, NICE and DECENT doesn't apply.   It's the Trash Class, they count too (in statistics, if for nothing else).

Tue, 08/12/2014 - 14:27 | 5082867 highwaytoserfdom
highwaytoserfdom's picture

but the statist use force and violence for the property taxes.....  or the children of course. What are we 20th in education in the world..

 

Tue, 08/12/2014 - 14:27 | 5082868 ZeroPoint
ZeroPoint's picture

Long homeless shelters, RVs, and Coleman tents.....

 

 

Tue, 08/12/2014 - 14:27 | 5082877 nosoeawe
nosoeawe's picture

2k in SF will get you a one bedroom in the tenderloin living above wangs chinese take out. you will have a stunning view of a brick wall and/or corpse laying in the alley way.

for 3k, you can upgrade to a cardboard box somewhere off cap and mission

Tue, 08/12/2014 - 14:29 | 5082882 walküre
walküre's picture

Expect a vast expansion of sector 8 housing and government secured mortgages.

If that's not coming, then keep your cardboard and old linens. May come in handy one day.

Tue, 08/12/2014 - 14:29 | 5082891 rtalcott
rtalcott's picture

Boise...Lincoln....and no Albuquerque?

Tue, 08/12/2014 - 14:36 | 5082931 Lynn Trainor
Lynn Trainor's picture

Yeah, and where's Phoenix?

Tue, 08/12/2014 - 15:46 | 5083321 toady
toady's picture

That's the one I was looking for. I finally got over $1k for the 3 bedroom I own in Gilbert, SE of Phoenix. New management co. is a little more aggressive, but they fucked up and returned the complete cleaning deposit to the previous renters.

So now I'm torn. I can't afford deposit fuck ups, but the extra Franklin a month will be nice.

Tue, 08/12/2014 - 14:34 | 5082916 IridiumRebel
IridiumRebel's picture

NYC is actually about 25% more if you wanna live in an area where English is the major language and value your life.

Tue, 08/12/2014 - 14:41 | 5082953 Brown Donahue
Brown Donahue's picture

Try 250% more.  You won't find a decent 2BR for under $3800 and this is at 96th at the edge of spanish harlem.

Tue, 08/12/2014 - 14:44 | 5082965 IridiumRebel
IridiumRebel's picture

yes, but they are including SOBRO....You know, South Bronx? So gentrified...or petrified.

Tue, 08/12/2014 - 15:02 | 5083070 Brown Donahue
Brown Donahue's picture

But I value my life and speak english.

Tue, 08/12/2014 - 14:34 | 5082917 Tom Brady
Tom Brady's picture

Those avg rent numbers seem way off.  $1200 for a 2 br in miami is about 500-600 short of reality for a still questionable place.  These probably wouldnt even be avg prices for 1 brs in these cities.

Tue, 08/12/2014 - 14:38 | 5082938 NOTaREALmerican
NOTaREALmerican's picture

Re:  $1200 for a 2 br in miami is about 500-600 short of reality for a still questionable place.

Not where the Trash Class lives.

Tue, 08/12/2014 - 14:35 | 5082924 socalbeach
socalbeach's picture

Pay rent, pay property taxes, live with your parents, or be homeless.

Your call.

Tue, 08/12/2014 - 16:07 | 5083462 Professorlocknload
Professorlocknload's picture

Pretty much said it there socal.

Live in SF, make the big bucks, pay the big bucks.

Don't like it, move to Podunk ID.

Tue, 08/12/2014 - 14:38 | 5082937 Dr. Engali
Dr. Engali's picture

"One thing is clear: until there is a reason to reverse the own-to-rent trend, one which will not appear until median consumer incomes resume growingfor all, not just for the uber-wealthy,"

 

Notice how in just about every reference to a U.S citizen they are dehumanized by the term "consumer"? At one point in time a consumer was defined as "one who squanders or wastes," now a consumer is "a person who uses a commodity or service". See how better that sounds now that we've changed the language? 

Tue, 08/12/2014 - 14:42 | 5082958 IridiumRebel
IridiumRebel's picture

In the future, we will be known as pissants.

Tue, 08/12/2014 - 15:56 | 5083402 knukles
knukles's picture

"Pissant" sounds ever so much better.  "Consumer" is derogatory... you know, "He Who Must Spend or be Sent to The Camp" mistakenly as an angry threat to Nobility

Tue, 08/12/2014 - 16:04 | 5083440 toady
toady's picture

I remember when we were called 'citizens' , not consumers. The change was already underway with the rise of credit cards for everyone, but W put the final nail in the coffin with the 'go out and shop' speech after 9/11.

I haven't heard the average American called anything but consumer since that speech.

Tue, 08/12/2014 - 16:09 | 5083490 ajax
ajax's picture

 

 

From citizens to consumers, from people to "folks". I remember when "folks" meant specifically your parents.

Tue, 08/12/2014 - 14:38 | 5082939 Kirk2NCC1701
Kirk2NCC1701's picture

So?

You believe in Free Markets, right? IOW... The prices will be whatever the Market will bear. Same as it ever was.

Plan accordingly.

Tue, 08/12/2014 - 15:51 | 5083336 walküre
walküre's picture

Some have access to virtually zero borrowing costs. Big financial players with tons of leverage loading up on real estate and renting it out. In their hunt for yields they're overbidding each other because money or credit is no object.

Everyone else gets screwed and to top it off, everyone needs to sell themselves and accept worthless devalued paper in return for their trade.

Free market my ass. It always only works one way and benefits one small group.

Tue, 08/12/2014 - 14:39 | 5082944 youngman
youngman's picture

I am feeling pretty good..I get $2500 a month for my condo.....cant sell it so I rent it..and an additional $150 a month for an extra parking space..

Tue, 08/12/2014 - 16:16 | 5083515 toady
toady's picture

I left a 2 bedroom condo behind in SJ back in the late 90s when I transfered at work. Getting $3k a month, up from $2.5k a few years back. Only paid $118k! It's paid for itself several times over.

I don't charge for the parking place. That's more of an east coast thing. Maybe I should think about it...

Tue, 08/12/2014 - 14:47 | 5082973 homiegot
homiegot's picture

Bah ha ha a ha ha ha ha ha ha ha! Fucking suckers.

Tue, 08/12/2014 - 14:51 | 5082995 HairyChestedFrogman
HairyChestedFrogman's picture

Boise is a true oasis.  Favorable demographics so crime is negligible; endless recreation; cost of living is super low. People are friendly and armed.

San Diego to Phx to Boise.  Got custom 2000sq ft. home on 4 acres bordering Natl Forest for 280k 18months ago.

Tue, 08/12/2014 - 14:55 | 5083025 walküre
walküre's picture

Decent move. But what about the jobs? Unless you're self employed or your workplace is "in the clouds", it is a difficult proposition.

Tue, 08/12/2014 - 15:52 | 5083363 gdogus erectus
gdogus erectus's picture

Forest in Boise? How's Micron treating you?

Tue, 08/12/2014 - 19:20 | 5084554 HairyChestedFrogman
HairyChestedFrogman's picture

National Forest, just up Hwy 21.  Idaho has the largest contigous wilderness in the lower 48.  Small business owner, but good guess.

Tue, 08/12/2014 - 14:53 | 5083006 Professorlocknload
Professorlocknload's picture

Buy rental property?

CAP Rates in many markets might suggest that.

Tue, 08/12/2014 - 14:55 | 5083012 alexcojones
alexcojones's picture

@Manthong - "Heartland 60 degrees"

Not sure what part of the "heartland" you're in - Chicago? - but most daytime temps are mid  70-80s

Stay Cool!

weather.com - Map Room - Satellite Map, Weather Map .
Tue, 08/12/2014 - 14:56 | 5083030 Smallfry
Smallfry's picture

In 2004 or so, I got a 2 bedroom apartment in Yuppie San Francisco for $2,000. Cow Hollow area. I got a good deal because I looked for apartments on Sunday when the World Series was playing. Hee hee. Of course, it did have 70's brown kitchen tile in the kitchen. It wasn't completely beautimous, and I should have bought at the time, but still. Good prices can be found, but you have to put in oh 500 hours or so per apartment search. I have heard $4,000 is now the going rate, unless you're an enterprising sort like me, maybe $2,500 a month. Just wait to look until the day of the biggest sporting event of the year!

Tue, 08/12/2014 - 15:00 | 5083062 I Write Code
I Write Code's picture

That's absurdly low for Los Angeles, if you exclude parts where you have to sleep blocking the door and holding a gun.  Two-bedrooms probably average $2,200++ in decent areas, and newer construction in nicer areas can easily be $4,400++.

Tue, 08/12/2014 - 15:05 | 5083096 Frank N. Beans
Frank N. Beans's picture

"Still, as Mother Jones notes, "With more people trying to get into same number of units you get an incredible pressure on prices," ...

Has anyone here heard of what a free market would do here??  Nobody??  A common reaction to not enough rental units / high rents is for there to be an increase in rental units as more people get in on the rental income action; i.e., build or invest in more apartments, convert more houses to rentals, etc. 

That SHOULD help with keeping rents down.  High rents lead to more rental units.

 

Tue, 08/12/2014 - 19:54 | 5084670 Tall Tom
Tall Tom's picture

 

 

 

Build MOAR?

 

LOL.

 

Have you ever heard of the Federal Reserve buying up those Mortgage Backed Securities?

 

This was done INTENTIONALLY to keep Houses from the Housing Market.

 

Those houses are fucking POTENTIAL RENTALS.

 

They create the shortage and, in response, prices for the remaining Rentals escalate.

 

I have read so many comments on this thread. Some blame "Price Inflation".

 

But you guys seem to have MEMORY PROBLEMS.

 

There are many VACANT FORECLOSURES which could house people were they allowed to be marketed.

 

But then your personal home price, your NON EXISTANT EQUITY in your home will take a substantial hit and then you'd understand that you are already Upside Down.

 

But instead you all seem to want to live in this dreamland (more like a NIGHTMARE) and believe that which is NOT REAL.

 

If you want Rental Prices to decline...and many here do not as it will affect their Cash Flow...then the solution is for the Federal Reserve to LIQUIDATE the INVENTORY on its books.

 

Of course, then, the landlords will find out that they are Upside Down.

 

It is NOT to build MOAR.

 

Don't hold your fuckin' breath. It may kill the last working brain cell that you have.

Tue, 08/12/2014 - 15:15 | 5083100 Pee Wee
Pee Wee's picture

Tyler should be ashamed to post the pricing chart.  It's not even close.

I can speak with personal authority that in three cities (SF, Denver and Lincoln) these numbers are pure propaganda.  These need to all be adjusted up about 25-45% depending on the area. Are these current as of 2004?

This smells like "there is no bubble because we say so, here, look at these numbers we made up."

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