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In These 13 US Cities, Rents Are Skyrocketing
Seven years ago, the American homeownership "dream" was shattered when a housing bubble built on a decisively shaky foundation burst in spectacular fashion, bringing Wall Street and Main Street to their knees.
In the blink of an eye, the seemingly inexorable rise in the American homeownership rate abruptly reversed course, and by 2014, two decades of gains had disappeared and the ashes of Bill Clinton’s National Homeownership Strategy lay smoldering in the aftermath of the greatest financial collapse since the Great Depression.
In short, decades of speculative excess driven by imprudence, greed, and financial engineering and financed by the world’s demand for GSE debt had come crashing down and in relatively short order, a nation of homeowners was transformed into a nation of renters.
It wasn’t difficult to predict what would happen next.
As demand for rentals increased and PE snapped up foreclosures, rents rose, just as a subpar jobs market, a meteoric rise in student debt, tougher lending standards, and critically important demographic shifts put further pressure on homeownership rates. Now, America faces a rather dire housing predicament: buying and renting are both unaffordable. Or, as WSJ put it last month, "households are stuck between homes they can’t qualify for and rents they can’t afford."
We’ve seen evidence of this across the country with perhaps the most telling statistic coming courtesy of The National Low Income Housing Coalition who recently noted that in no state can a minimum wage worker afford a one bedroom apartment.
In this context, Bloomberg is out with a list of 13 cities where single-family rents have risen by double-digits in just the last 12 months. Note that in Iowa, rents have risen more than 20% over the past year alone.
More color from Bloomberg:
Landlords have been preparing to raise rents on single-family homes this year, Bloomberg reported in April. It looks like those plans are already being put into action.
The median rent for a three-bedroom single-family house increased 3.3 percent, to $1,320, during the second quarter, according to data compiled by RentRange and provided to Bloomberg by franchiser Real Property Management. Median rents are up 6.1 percent over the past 12 months. Even that kind of increase would have been welcome in 13 U.S. cities where single-family rents increased by double digits.
It’s more evidence that rising rents have affected a broad scope of Americans. Sixty percent of low-income renters spend more than 50 percent of their income on rent, according to a report in May from New York University’s Furman Center. High rents have also stretched the budgets of middle-class workers and made it harder for young professionals to launch careers and start families.
"You’re finding that people who wouldn’t have shared accommodations in the past are moving in with friends,"says Don Lawby, president of Real Property Management. "Kids are staying in their parents’ homes for longer and delaying the formation of families."
And for those with short memories, we thought this would be an opportune time to remind you of who became America's landlord in the wake of the crisis...
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that kind of increase would have been welcome in 13 U.S. cities where single-family rents increased by double digits.
Don't you know that inflation has been vanquished from the land of the free?
Just look at how we fix inflation:
Chapwood Index shows real inflation in US.
In 2014, it was 9.7% - 1212% of official US inflation (0.8%)
http://www.chapwoodindex.com/
The Chapwood Index reflects the true cost-of-living increase in America. Updated and released twice a year, it reports the unadjusted actual cost and price fluctuation of the top 500 items on which Americans spend their after-tax dollars in the 50 largest cities in the nation.
Alternate inflation charts from Shadowstats shows inflation at least 3% to 7% higher than official statistics:
http://www.shadowstats.com/alternate_data/inflation-charts
The Elite will fix this with Ebola.
As an owner of rental units I guarantee that the costs are getting passed on. Taxes up, permit fees up, bullshit rules and regulations, insurance up, and damages up. One pet peeve of mine is CHinese made plumbing. It corrodes through and blows out flooding cascades of units. The in come the $500/hr flood restoration people required by the insurance company. No-one worried about mold 20 years ago and now it's a massive business thanks to poor quality crap from China.
Talk to the insurance company about a joint lawsuit. They have subrogation rights, but you probably have losses not covered by insurance. Find a good plumber who will testify that the pipes are defective. Even if you can't get to the Chinese manufacturer, you have a valid claim (in most states) against the importer/distributor/seller/installer, at least one of whom probably has insurance. Most states recognize strict liability for product defects up and down the distribution chain. Texas is an exception due to "tort reform."
If you have a lot of units affected by this, and can convince the insurance company to work with you, and if you don't live in Texas, you'll find a lawyer who will take it on contingency.
I made $5000 sitting on my ass in front of a computer by moving to Texas...
Blackstone's biggest bet? My ass, it's no bet at all. Here are Blackstone's biggest renters:
http://www.breitbart.com/big-government/2015/07/26/new-california-mass-i...
And it's happening everywhere.
Now you know what Obama's "lack of immigration" immigration plan is.
And it's the same thing with Puerto Ricans flooding Florida, (because it's doing it's Greek Suicide as well).
Saaaaaaaay, how is that "Hope and Change" thing working out for ya'?
the tribe rejoices.
Here in Stockholm, the rent for a 1-room, 35 m2 (approx 380 square ft2) apartment in the center of the city is about 1.500 - 2.000 USD per month. Which cities in USA mathces this price?
Prices here in Stockholm have now gone parabolic. The average price for 1 m2 (10,7 ft2) is just slightly below 90.000 SEK, which equals 10.500 USD.
Ames does not count as a city.
Upper east Side, NYC, average rent for a 1-bedroom is $2,946. Higher in other areas...
http://www.refinery29.com/2013/02/43352/nyc-rent-average-price-one-bedro...
Just imagine how much money people are doing by filling those apartments paid for by the government (taxpayers). Bring in more syrians and somalians.
Supply & Demand
I've noticed a large increase in out of state plates in the lone star state....I thought errbody hated us??
People move to these cities because the economy sucks in most of the country, and they can't find decent work where they lived before.
God Bless Texas! I LOVE it here.
Silicon Valley is moving to Silicon Gulch in Austin, TaxUrAss.
Thank you very much you motherfuckin Kalifornians
lol. I was in Missoula, MT in 2008. The locals there were great and welcoming of outsiders - except for Californians. If you said you were from Cali, I think some of them would've said "Get a rope." They were already sour on them then, due to numerous bad experiences...
Missoula is a university town and a bastion of seething, crazed liberals who drone on about the evils of white privilege and microagressions. They're sour on anyone who doesn't espouse the philosophy of Karl Marx and Lenin.
Is everybody else missing the corn-fed elephant in the room? Ames and Des Moines IA at 20%+? Fucking really?
At least Ames is explained away by Womens Studies classes at IA State. But Des Moines? at 20%+? Fucking really? I've been there. Fucking really?
Uh, maybe it's just whites wanting to get the hell away from black crime. We will need to expel them to Africa sooner or later.
And where do we run from the white pillpoppers of M'erica?
Different markets in different part of the country. I built a 4plex in 2000, rents were $700 monthy. Not a huge return, about 8% (Apple makes 22%, IIRC).
2015: Rents are now $690, taxes are up, water bill is up, trash collection is up, insurance is up, rents are down slightly.
We do stay full easily due to a housing shortage. We can't charge more because people here don't make enough to pay more. So, now it's a 5% return.
Builders can't afford to build new rental housing as you can't build cheaply enough that people could afford the rents.
But as you know, let the government regulate the Sahara, and you'll soon have a shortage of sand.
Rent control is around the corner so be careful.
Worked out so well in NYC, eh?
Especially for "folks" like Charlie Rangel who owns something like 4 rent controlled contiguous units restructured into a palatial massive town home big enough for 8+ poor families.
Must be that Black Political Benefactor Privilege. Just goes to show that every poor uneducated downtrodden underprivileged child (it's all about the children) can rise to greatness and fortune in America.
He likes the Dominican Republic, too...even if he keeps forgetting to file those taxes. You know, those taxes that are always good for everyone else to keep free lunches for kindergarteners going.
Different markets is right. In the last 2.5 years, I've seen old Hurricane Katrina-era FEMA trailers that were bought for $3500 stay rented for $1200/mo in Big Spring, TX, and average 1 bedroom apartments in Midland, TX go for $1400+/mo.
I have a rental on the MS guf coast. The govt gave so muc tax credits their they overbuilt i get $100 less now. In Colorado Springs a 2BR that got $1050 2 years ago gets $1250 now. But no inflation of course.
I have 3 rental single family homes. I bought the first one in 2008 then second in 2009 and third in 2011. None of them had an increase in rent.
The HOA has gone up significatly for two of them, but at least the taxes are stable.....for now.
I cannot increase rent because the market won't support it. I would rather have a long term renter than higher rent and constant turnovet.
Apartment complexes do not worry about such issues very much. They cater to lower cost market anyway.
You bring up a good point, Meremortal. The stats they show for Denver are pretty much true for most all of the Colorado population centers. Rents and home prices are way up simultaneously. Part of it is no doubt due to the influx of people as in simple supply and demand. However, incomes are not rising as fast as these prices which in many areas are doing double digits. At some point, the books must balance between incomes and expenses.
I would add that the rise in values is a free windfall for cities, as well. Taxes go up quickly and dramatically while actual costs may not be. You can bet a lot of that money will flow into graft and waste. Every city worker will start getting raises and new office furniture.
Gosh my heart bleeds for you. Hey maybe if you didn't buy Chinese shit in an effort to further rob your renters the mold shit wouldn't happen. But that's what happens when you get greedy you ASSHOLE FUCK YOU. I HOPE YOUR WHOLE BUILDING COLLAPSES AHAHAHAHAHAHA you're just another shit hole landlord. And everyone feels so bad for you.
You're a fucking idiot.
Maybe most of what's available to him is Chinese shit and he doesn't have any choice in the matter just as the rest of us don't whether we are buying a shovel or a roll of tape. As far as his motivation to rob his renters what makes you so fucking holy like you're some judge, jury and executioner all wrapped into one? This is still the US and investing for gain and profit has not been made illegal yet. Judging by your rant government foodstamps, housing and Ohomo phones haven't given you the satisfaction you think you deserve so obviously you need to criticize someone who was willing to get off their ass and do something gainful? Looking at your avatar I could readily believe your a drug pushing pimp. If that's true and it probably is how many lives do you fuck up just as a matter of breathing air fucktard.
Commie filth like this needs to be expelled to N. Korea.
Hangem that is totally unfair and actually naive.
Every home in the USA has foreign material or fixtures in them every single home. Do some research and you will find plumbing fixrtures, appliances, framing lumber and depending on the material used on the exterior is not made in the USA. The sheet rock fiasco can be directly attributed to the Federal government allowing untested sheetrock into the USA when our USA manufacturer's could not keep up with the demand after Katrina. At the time two toilets were made in the USA period. Not one faucet was made here and your appliances are either made in Mexico, Canada, Korea or China. This is not the home owners fault.
I have built homes for years and try to buy only USA manufactured goods and go check them yourself and you will find out how much is not made here. Having said that USG sheetrock is the only product I use even if it means I wait for it. If you have Mahogony doors they too are not made inthe USA because this type of wood does not grow in the USA.
All of my framing material, wall goods, windows and doors, insulation, roofing and paint you can buy manufactured in the USA, but even then you can to know your products. After that it is a crap shoot on where it is made. My plumbing pipe is made in the USA as well. Take a look at a electrical and you will find all the switches and outlets are not made here either.
Do not blame a homeowner for not buying US made goods when they are buying a home from a builder. Simply stated most interior finished goods used to finish a home are no longer made here period. People love Kohler and Delta and hey all made in mexico and China with the exception of some very expensive fixtures.
Yep, that's the "service economy" at work..... er, sorry, out of work.
http://economyincrisis.org/content/service-economy-taking-over-us
I have to concur regarding the Chinese fittings - I recently finished plumbing a commercial building and literally 20 out of 40 Chinese quarter turn 3/4" ball valves leaked from their seams.
I wish I could go back and find some of my old posts for an "I told you so."
Having been to China and having some family working there I was impressed with how fast new stuff has gone up and how quickly their manufacturing has increased. My theory was they actually did not have enough skilled labor and expertise to do all these things well. When you have been Communist you have gone full-retard in terms of progress. It is why all the cars in Cuba are still from the 1950's. There is no competition or free economy or free-ish government to stimulate product improvements that drive innovation and manufacturing.
On top of that in any autocratic country you learn to lie routinely to stay alive. You always say you will meet deadlines, quality controls and cost goals even though you know it is impossible. So, the older Chinese buildings have severely watered down concrete and half the rebar they should to meet the local party leader's goals of affordable housing in the preferred prison style.
This stuff gets sent to us because it is cheap and they probably lied about meeting every quality control that was demanded in their contract. They always say "Yes." even though they have no idea in hell you are not supposed to put lead in the paint of kids' toys.
Meanwhile, in the USA we close another plant due to an enviro lawsuit, taxes or the soon-to-be new minimum wage of $15/hr. We are also our own worst enemies.
+ 1. This post deserves many more up arrows.
Build to a price syndrome in action.
FreedomGuy
"... why all the cars in Cuba are still from the 1950's"
- perhaps you are unaware of the economic (and other) warfare the US has been conducting against Cuba.
"- perhaps you are unaware of the economic (and other) warfare the US has been conducting against Cuba"
- perhaps you are unaware of the economic (and other) warfare that the Castro brothers and their Marxist cronies have conducted against the people of Cuba?
The United States does not block Cuba's trade with third parties: other countries are not under the jurisdiction of U.S. domestic laws. Cuba can, and does, conduct international trade with many third-party countries.
The US has big purse strings.
The US controls finances, SWIFT, the IMF, and economic sanctions against those companies whose products and services have even a portion coming from or going in to Cuba.
Then there are the political and military 'hit men' of the US, the banning of travel and tourism, the US-backed lawsuits from Batista era "investors". etc.
Until 1997, contacts between tourists and Cubans were de facto outlawed by the Communist regime. Travel to Cuba didn't happen until the Castro regime made constitutional changes to Cuba's economy to allow for the recognition of foreign held capital. Travelers from around the world visit now Cuba.
The corruption of the Castro regime has created hell for the Cuban people. The US is not the source of all of Cuba's problems.
You miss the bigger point and you seem unaware of the USSR and Maoist China and N. Korea. Go buy a Trabant and see what you think. We made better cars in the 1920's.
Communist countries tend to drive out, kill and jail many of the educated and expert. They drive the economies underground and what exists is a noncompetitive state controlled, unproductive enterprise.
Tens of thousands of specialties are driven by free market purchases. It overwhelms anything governments can do. China did not have and still does not have enough well trained skilled labor to do half of what they attempt. The results appear on our store shelves up to a point.
I've long referred to this as "China Syndrome":
Looks great, but poor materials and production values.
It's the face of designed obsolescence going forward.
Funny, they used to say the same thing about those cheap Japanese cars. Now, what would you rather have, a Ford or a Lexus?
Two completely different cultures
As for the poster who said don't buy Chinese parts, I'm in construction and believe me we try hard to stay away from anything Chinese, but often it is all the suppliers carry.
Only for those who take the vaccine. They are also laced with Nagalase
https://dublinsmick.wordpress.com/2015/07/24/explosive-the-real-reason-h...
Of if you live near a well. In Africa they were pouring formaldehyde down the wells, which produces symptoms and death similar to ebola.
Wait until the 2016 health insurance premiums start to roll in, and you'll see real inflation.
Just got mine -- grandfathered-in plan I've been on for 20 years -- +18.6% for 2016 v. 2015. And that's a grandfathered plan without BS coverage (e.g. maternity for a 50yo male.)
Tell me about it! My property taxes shot up this year also. Car insurance up 14% on top of it!
Keeps going like this we will all be doubling and tripling up, just like the border brothers here in Cali.
My property taxes go up 2% a year. Max - by law.
And my car insurance goes down every year as my kids get older.
So my experience is very different than yours.
And I'm pretty sure there was a thread right here on ZH where a vast number of commenters advised against buying a home. Well, my house payment is fixed. No landlord to increase it. The rate is 3 7/8% and in my tax bracket, that's an after-tax rate of about 2 1/2%. With current inflation rates the bank is paying me to borrow money.
My point? Don't pay a lot of attention to the doofuses who hand out "free advice." Especially here.
Depends on where you live when you got in and did you have help getting in and how long the FED can keep levitating asset prices for those who are already in.
I can also remember the "You Gotta Buy Now" mantra of the sheep before the last housing debacle it would have been prudent not to listen to them either, like my ex wife who wanted to buy at the top; later when housing that we could have purchased was worth 200,000 less than at the peak she still blamed me for not owning. Thank God I am out of that suffocating situation, it worked out for the better.
Having been struck by uninsured illegal alien drivers from Mexico twice while I was living in NM, I can understand why.
Anther benefit for government, through reinflating the housing bubble.
Anther benefit for government, through reinflating the housing bubble.
Obamacare is a huge deadweight loss for the economy. It raises the price of insurance dramatically while actually providing no extra medical service. I could explain it in detail but the bottom line is that we are paying much more for the same we had before. The only people I suspect (but cannot prove, yet) are insurers. I think they priced a higher risk that what their actual payouts are. Also, with the huge cash out of pocket costs lots of people are simply not going to get medical services.
This is what happens when you let political hacks pretend they actually know something about economics or a specific industry.
The Obamacare law
was written by the Pharmeceutical and Insurance cartel.
The "political hacks" hardly even pretended that they knew anything.
They never read it or bothered to understand.
"We had to pass it to find out what was in it."
All they knew was who buttered their bread.
So, yes we know who Obamacare is wastefully intended to benefit.
But any future fix will NOT be accomplished by (again) having corporate shills who
understand "economics" and a "specfic industry" again make policy.
It is not a matter of insufficient knowledge.
Robert Creamer is now credited for writing 628 pages of Obamacare while he was in prison. Creamer is a senior Democratic operative who defrauded banks in order to keep his Marxist/Communist community organization afloat by engaging in 16 counts of bank and tax fraud. Creamer’s book is entitled, “Stand Up Straight: How Progressives Can Win.”
Many left-wingers say that Creamer’s book has inspired them in their progressive fight to turn America into socialist Europe. Former White House Senior Adviser, David Axelrod, described Creamer’s book as a “blueprint” for future progressive victories. Creamer has stated that in order to impose socialist healthcare on an unwilling nation, it is necessary to deceive the people.
Creamer is the husband of Marxist Congresswoman Jan Schakowsky, an Illinois Democrat who demands a “single payer” healthcare delivery system. Creamer’s book calls for the “democratization of wealth”, and the “progressive control of governments around the world”.
http://www.westernjournalism.com/revealed-man-wrote-obamacare/
http://www.thecommonsenseshow.com/2013/12/02/the-shocking-truth-about-wh...
Your linked references only claim without offering any evidence that Creamer wrote Obamacare. Their further claim that it is a "Marxist" (the new buzzword for "commie") plot authored by Creamer is not credible.
There is however, plenty of evidence about the actual insurance and pharma shills/panelists who devised and authored Obamacare.
Everyone should be aware that virtually all legislation is actually written up by lobbyists (more specifically lobbyists with an economic stake in the legislation).
You are parroting stupid stuff you do not know to be true. I work in medicine and I assure you that no one who knows anything about medicine, pharmaceuticals or even insurance wrote any of it. The insurance companies got a better deal but only because they had to in order to take on the unknown risks inherent in this idiotic, stupid but thoroughly leftist plan.
Wellpoint et al
http://mdredux.blogspot.com/2013/01/who-wrote-obamacare-and-where-is-she...
Insurance lobbying
http://www.infowars.com/insurance-giants-that-wrote-and-lobbied-for-heal...
Yeah, tell us something we don't know.
This has been going on for decades now.
four of the thirteen are in Texas... all of those are in areas where property tax assessments have been aggressively increased over the past four to six years... that's guaranteed to be passed on to renters, no surprises here...
some areas in those Texas cities have seen property taxes increase anywhere from 6% to 10% YoY for the past four to six years... how's that for inflation...
So, we can't afford to live here anymore. But people with neglible incomes come accross the border and succeed. How can this be?
Many more to an apartment/house and 90 hour week weeks per resident.
And they pay no insurance. No home/ renters insurance. No car insurance. No obamacare insurance.... it doesn't sound like much, but it's a lot if you look at it over time.
Yes, Chapman is probably not using the all-important Hedonic Quality Adjustment to his CPI. That would probably change everything!
Most of the data the government uses and reports are garbage, unemployment, inflation, GDP, trade deficits and most any stat that benefits themselves.
where is Boston MA or actually virtually ANY town east of I 495 in eastern MA. You cant find a one bedroom apartment anywhere for less than $1500 a month ( over $1800 anywhere along rt 128 ) and that is the average rent for 'blue collar' slightly rough cities such as Lawrence, Lowell or Haverhill. If you want to rent any of the nice apartments going up all around Medford MA, Cambridge, Somerville or Boston will cost at least $2500 a month for a studio apartment.
Article is about increases, not absolute rents. But I hear you.
WTF is going on in Iowa?
Hillary is leading.
Pig sex. Lots and lots of pig sex.
Even more now that the Republicons and Democommies are running for President.
Iowa is a beautiful state.
I don't live anywhere near Iowa, but you need to visit it to see how lovely it is.
then why are so many moving to the NYC area. I have to say one thing that native NYers hate about these transplants -- they don't understand the 'fast paced' life of the city and consider it rude when anyone is in a hurry in a store or to get somewhere
A guy from Des Moines flies into LaGuardia on business, first time ever in NYC.
De-plaining, walks up to the fist fellow he sees and says; "Excuse me, but before you tell me to go fuck myself, could you please tell me what time it is?"
No idea why people keep moving to NYC in droves. For me, the City (by which I mean Manhattan - fuck the B&T crowd) started losing its gritty uniqeness once Giuliani got elected. I'm not saying there haven't been a lot of improvements and that a lot of things aren't better, but NYC has become like most other major metropolitan areas, with shitty big box stores and national chain fast food stores (including Starbucks) or another fucking bank branch on every corner. Rents are ridiculous, infrastructure is crumbling, the MTA (subway/buses) is probably one of the worst organizations in the history of the world due to incompetence and the unions, everything is union which adds to horrific inefficiency and expenses, and cocksuckers like Obama are always showing up and fucking up traffic (both vehicular and pedestrian).
On the plus side, NYC has six professional sports teams, plus the Mets.
Shit, maybe that's why the rents in Iowa are skyrocketing - people have figured out that you can get pretty much the same shit anywhere as you can in the City (and before any of you mooks say Broadway, museums, etc., you know that it is a small fraction of locals who go to that shit regularly because like JMT mentioned, we're all too fucking busy trying to tread water to enjoy much of what the City offers).
no offence, but nyc sounds like a neurotic psychopathic shithole, and i live in detroit.
Back when I was tranferred outside Detroit, we were sent on detail to Chicago once in awhile. It was the only place we agreed that could make you glad to get back home to motown.
None taken - it absolutely is!
More on the BS "gritty uniqueness" meme...great days they were, bum jizzle on every bench and fat artists trust-funded in rent controlled shit holes waxed philosophical in sticker-painted dive bars. I remember getting hustled to watch a peep show at age 9. Yeah, those were the days! You probably weren't there.
If you consider cornfields and pig farms to be beautiful...
Pretty much. Iowa is one of the most geographically boring states in the US with lousy weather most of the year.
@SHEEPFUKKER
IMMIGRATION, that is what. Enjoy competing for housing, food, water, etc. with the millions upon millions of legal immigrants which will grow the population, via Census projections, to one billion by the end of the century.
ALL job growth since 2000 was taken by immigrants:
http://cis.org/all-employment-growth-since-2000-went-to-immigrants
H-1B Incompetence
Affirmative Action Thrives at Most Selective Colleges Carolyn Phenicie, Roll Call, March 23, 2015
The Many Costs Of Obama's Executive Amnesty
BY PHYLLIS SCHLAFLY 03/23/2015
@ Laddie
Well done.
Even immigrants have to sleep somewhere. If rents keep rising, how the hell are $10/hr immigrant workers going to afford places to live.
Oh...right, welfare and the fact that they will pack 20 people into a house built for 4.
They will raise it to fifteen dollars an hour and go up from there. Pretty soon those with planned retirements will have a lower standard of living than the guy working at burger king.
As an American when we move out we usually have 1 person to a bedroom. Immigrants..not so much.
Been there, and it's been done to me. Twice. (Replaced by H1Bs, that is).
"The United States has accepted two new immigrants for each additional job created since 2000, according to federal data, and expert witnesses have testified that once the amnestied illegals are given Social Security numbers and driver’s licenses, there is no way to stop them from registering to vote."
Hope and change. How's that going for us?
fix duplicate
My bet is that the rents are very low so any increase looks like a large percentage in Iowa. In terms of absolute prices and rents it is probably not too bad.
God says:
Airbnb did hire ex Blackstone CFO. Can you connect dots?
Plus their acquiring Hilton Hotels in 2007, they have invested in the growth of the leading global hospitality chain.
Are you people thinking Hilton Micro lodges featuring AirBnB in all of Blackstone unrented rooms? GOD IS!
Did GOD just qualify for the innovation grant?
https://www.blackstone.com/citizenship/the-blackstone-charitable-foundat...
Just in time to raise interest rates to the moon.
virtually the entire Northeast Corridor from Washington DC to Boston.
Rents in NJ, eastern MA (east of I 495) and anywhere in the NYC metropolitan region have been skyrocketing.
Have to compete with 20 something yuppies for a $2500 one bedroom apartment in most areas.. The 'bidding wars' are not just in real estate purchases of 2 million dollar properties in Soho, Tribeca or in Carnegie Hill in NYC now. Now people get into 'bidding wards' over a $2500 studio apartment in East Harlem
Leave. That's what I did. I will say I moved to one of the cities on this list from NYC. My apartment, near downtown (5-10 min commute), is about 40% what I paid in NYC and is probably 25% larger. I don't know why anyone who has skills that are geographically transferrable would voluntarily choose to continue to live in the NE Corridor.
Most people in NYC would get lost in a single-wide trailer--and would have a far better quality of life if they moved into one and went to work for Wal-Mart.
As much as I hate how overcroweded it is, I fear that I may hate another area more. I am too used to the lifestyle of "utilizing my time more efficiently." I live in a more rural part of NJ the majority of the time and the fuckers around here drive me crazy. How do people live with their head up their asses?
Raise it too much and they'll be sitting with empty properties. It's the fault of the renter if they pay those crazy rent increases. With the number of places out there, there's no excuse to accept it. Also, how is it possible to charge those rents when real wages have fallen over the last 15 years? Who's renting?
haven't seen that anywhere but what is really telling are the rents in the suburbs around NYC even areas that I mentioned such as in New Haven CT at the last stop on Metro North or anywhere in Nassau or Suffolk County on Long Island where NOT ONLY will you be paying $2500 + a month but the amount of a car payment for the LIRR or Metro North + subway each month to commute. Westchester County is similarly outrageous. Even rents in Yonkers near the city line are over $2000 a month
Here's the income stats for NYC... ".. Median Income. NYC Neighborhoods. The median household income across New York City stands at $50,711, according to 2010-2012 estimates from the U.S. Census Bureau. That's down from $54,057 in inflation-adjusted dollars for the 2007-2009 period..."
So, at 2000-2500 per month, the average new yorker would be spending half of their gross income on rent in these areas. How is this sustainable? According to rentjungle.com, ... "....
As of June, 2015, average apartment rent within 10 miles of New York, NY is $3432..."
Something doesn't add up. Unless they have a room mate who sleeps on the couch.
You are mixing averages and medians. Rent for a two bedroon is more like $2500, give or take depending on neighborhood. Still not possible on $50K. But you are correct, a lot of roomates.
Not everyone is a 20 something millenial who want to live with 'roomates' so they live in a 'trendy area' eat out every night, goto a crossfit gym that charges $250 a month and commute by public transportation & rely on Uber & Zip car for destinations that the subway doesn't goto
Those Yuppies or whatever they call themselves crack me up. For example, who in the world needs a watch that tells you when you need to get up and walk around? It's another sign of how Fat, Lazy and mixed up Americans have become.
.. and actually pay money to go to a gym and run? WTF?!
You are NOT finding a 2BR in Manhattan for $2500 unless it is a hovel, and then MAYBE. Average 1BR is $3400. Maybe $2500 in the B&T areas, but not in MNH.
http://www.businessinsider.com/manhattan-studio-rent-breaks-records-2015-3
The stats are out of skew due to welfare. You have hordes of people in public housing across NYC and they have little to no income. They you have fewer people with very high income. The same goes for rent. What is the rent for public housing? Does it even show up in the data? Then you have $20K/mo apartments.
I ask that in the Boston & Cambridge area. There are so many college & Graduate "students" who can somehow afford to spend $2,000 - $5,000 a month in rent
bidding wars I mean. Landlords anywhere in the NYC area (or in Nassau/Suffolk or Northern or Central NJ) have multiple applicants per rental apartment since inventory of rental properties in the NYC Metropolitan region is the lowest in history (there is no rent control in the suburbs or in Fairfield or New Haven Counties in CT) but apartments are renting for outrageous sums despite the fact that you are looking at a 2 hour commute either on the train or on I95 to Manhattan from New Haven CT for example
Fuck the dream!
Actively seeking sucker -- I mean loving familty -- to buy my home!
I like my house, but this may be the first (and last) time since it was built to get most of the equity back. I hate the nazi-like, corrupt HOA. I hate the maintenance. Most of my neighbors are statist douche bags. The local schools suck. And most of all... I don't want a damn thing keeping me on this peanut laden terd of a country as it gets flushed down the toliet of history. I'm going mobile yall and hoping someone can throw me a life preserver from the toliet seat.
Austin, Houston, Dallas; three cities in oil "rich" Texas. How's the rent income looking now that the shale sector went under? Those cities are about to go bust and people that bought into real estate are going to get sunk.
just a bunch of hipster transplants from the Bay area of CA I bet. They are either living on parents handouts or on the profit from selling their home in the San Francisco Bay area
Not just shale, anything with WTI attached to it is getting its shit pushed in. There are going to be ALOT of newish F250's and Mcmansions up for sale very soon......
How in the fuck is austin oil rich (oil rich in bribing maybe)? I'm glad san antonio is making a list besides being the fattest city around. Also, fuck austin,ca.
Keep on drinking the kool-aid; this is not the 1980's, Texas has DIVERSIFIED. Got 6 universities, count 'em..6 in Tier 1 NSF grant status (first crack at $70 billion/yr in STEM grants, get to keep & commercialize the IP).
West and South Texas have the Permian and Eagle Ford shale formations. The Dallas area Barnett shale formation is natural gas. The Houston area is mostly oilservice companies and refineries. Austin is not reliant on energy at all.
Austin/San Antonio region = tech, military, and colleges
Dallas = fortune 500 and tech like Texas Instruments, Cisco, Intel, AT&T, Toyota, American Airlines, Southwest, Fluor, Comerica etc. The only major oil company in the area is Exxon. They have their HQ in Dallas, but not field operations. The DFW area is very diverse economically
Houston = energy, shipping
I see Houston getting whacked if this goes on much longer.
Yep. Houston is the most vulnerable because it is energy, and heavy on energy service companies. Downtown area is still surging with new construction. If energy prices continue to stay low, Houston will get whacked but I think Austin, Dallas and SAT will be fine. There was hardly any fallout in 2008-2009 in those cities when there was blood in the streets elsewhere.
Austin is the state capitol which counts for plenty.
Pay your rents bitches!
Happily, $1,400 2 bd 2 bath 1300 sq ft condo, fire place, 1 car garage, front and back block walled, W&D hook up, So Calif., free water & trash, all electric one bill, new air, fuck the drought, you pay bitches, I'm saving $2k a month over owning. And I'm now two blocks from work. Down size is bitchen.
Gold Bitchez....I pick up pennies
Not bad, Rubbish. You've done a good job especially that two blocks from work. Amazing savings on gas, wear and tear on the car and wear and tear on your psyche by not being on a freeway. Well done. You can probably even go out to eat now.
I know a lot of people who have left or are leaving the northeast. Don't forget the $10K-$15K in taxes you have to pay to own.
In the Boston area -- Newton & Wellesley which are on the list of 20 best towns to live in list have annual property taxes of over $15,000 a year..
Holy shit, batman. I suppose if you're a sociopathic bankster, lawyer or brain surgeon, you just don't give a rat's ass how much those taxes are. For the rest of the wage slaves, I wonder how many are being forced out of their homes due to that, or the old folks.
Ten years or so ago T moved from Jersey to Dallas. Lotsa reasons, mostly the SBC buyout, but I'm sure all the people that dumped those heavy property taxes were happy. The dozen or so that I knew personally were ecstatic.
NJ was the same. Even at those levels it is never enough. When I lived in NJ I remember see the first ever chrome plated garbage trucks.
The eastern Massachusetts region (east of I 495) has gotten much more crowded in the past 5 years or so. The quality of life however will never be as good as that as the NYC metropolitan region however. Many never leave the area and vacationing is going somewhere in New Hampshire or to Cape Cod or Cape Ann
'The quality of life however will never be as good as that as the NYC metropolitan region however.'
And that's not saying much. QoL in Manhattan has rapidly gone downhill in last several years. And it has become a shadow of its former unique self in last 20 years. I had enough and moved south. It is amazing how much better I live on significantly less net money.
Comrade DeBlasio will have that crime rate right back up to the 1970's level, soon. That should help stem property values.
I left. Fuck the NE.
In NJ, half of that goes to the public schools budget for the "quality" education the deliver...
I'm outside Greenville SC and the number given seems low to me. This area is growing like mad as refugees from northern states come to escape the cold, the cost of living, and the crazy.
The rents are rising here as a direct result of wealthier northerners bringing higher incomes into the market.
20 percent increase in austin correct
One of the posters alluded to the problem but not in entirety. Taxes. In order to support the unbridaled expansion of the school base with employment, administration, pensions (many "unfunded") and other costs in this sector these costs are ultimately passed on to the renter. How else could it work? So if taxes related primarily to schools, teachers and public sector pensions are going up hand over fist and charged to the asset then what does the asset owner do? They pass it on.
It's always about the taxes.
That is all.
https://www.youtube.com/watch?v=rHEitsYJnmw
Aw' Come on TAP
Just because you like fucking and catch a doze of the crabs doesn't mean you have to pass them on! s/c
I jest.
Affordable, non-shithole apartment is the new Americanasian dream.
"Seven years ago, the American homeownership "dream" was shattered when a housing bubble built on a decisively shaky foundation..."
A deliberately shaky foundation.
What a fucking joke...3.81% on F class (NOT RATED) bonds.
"two decades of gains had disappeared and the ashes of Bill Clinton’s National Homeownership Strategy lay smoldering in the aftermath of the greatest financial collapse since the Great Depression."
The housing bubble happened when Bush was President. Massive mortgage fraud happened when Bush was President. Before the bubble occured, Krugman noted that GREENSPAN needed a housing bubble to pull the economy out of the dotcom bust.
The FBI warned a republican congress in September 2004. In 2005 GREENSPAN was praising bankers for getting people into homes they otherwise could not afford. In his praise he deliberately ignored the massive mortgage fraud sweeping the housing market.
It is ridiculous how easy it's getting to spot the red/blue team bullshit. It's almost guaranteed that it's Clintons fault if someone mentions W, or W's fault if someone mentions Clinton.
So go the meme wars...
Actually, Greenspan warned of GSE liabilities, explicitly as well as other coming social problrms, "we face national threats that not even the constitution can protect us from" were his exact words.
The Outback has it's advantages.
I suggested the short $usd retrace.
There's little likelyhood that the euro will reach parity with the $usd.
Here's why.
1) Bond market
2) macro wash (rinsing profits)
3)DEFLATION
4) Loss of leadership
5) lack of financial prowess
Glen Stevens (RBA) needs to step down. He's a nice gent, but doesn't have the time to be a central bankster.
Why are australian bonds bought, when the currency is sold?
I know why.
Iowa?
That really confounded me as well. Ames Iowa? Really? Maybe people are having to dump owning houses and heading to rentals. Maybe Ames has an influx of Obama immigrants from Syria or Somalia.
Oh come on, all those temporary political campaign guys have to sleep someplace.
If Iowa is gouging the shit out of them, I say good for the Hawkeyes and "serves you right" to the political dogsbodies trying to sell the country down the river and land a sweet job for helping make it happen.
Is this hyperinflation? No, it's Iowa.
Over 20% increase in one year is a staggering amount. Now we have ever dwindling discretionary income that is somehow supposed to "grow" the economy. Every day I am amazed how long the Ponzi scheme has gone on.
Hopefully, seeing this chart will bottleneck the ceaseless exodus to Austin. The air is redolent of hipster shampoo and untalented "musicians."
Rentier capitalism
https://en.wikipedia.org/wiki/Rentier_capitalism
Rentier capitalism is a Marxist term currently used to describe the belief in economic practices of monopolization of access to any (physical, financial, intellectual, etc.) kind of property, and gaining significant amounts of profit without contribution to society.[1][2][3][4] The origins of the term are unclear; it is often said to be used in Marxism, yet the very combination of words rentier and capitalism was never used by Karl Marx himself.
~//~
ren·tier
noun
noun: rentier; plural noun: rentiers
a person living on income from property or investments.
Providing homes to people who can't afford to buy isn't contributing to society? Risking their capital, maintaining property at their expense, and managing inflows and outflows isn't a worthwhile and productive occupation? I suppose sitting on your ass collecting overtime or a fat pension from a government "job" is preferable to crackpots like Marx or yourself.
The Richmond CA (in the SF Bay Area) city council just instituted rent control. Rents in the Bay Area are increasing at double digit annual rates. Landlords, especially those in California, can look forward to further rent control (its allowed in California) as the landlords try to screw renters more and more, the greedy bastards. Serves them right if the entire state goes to rent control.