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ChickenBeckerman Star Player
Joined: 08 Jul 2012 Posts: 2060
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tlim Star Player
Joined: 26 Jun 2002 Posts: 6648
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Posted: Wed Sep 13, 2017 2:58 pm Post subject: |
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NIMBY |
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No. 17 Star Player
Joined: 29 Dec 2007 Posts: 7040 Location: L.A
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Posted: Wed Sep 13, 2017 3:00 pm Post subject: |
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Housing inventory shortage. _________________ It's winnin' time! |
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lakersken80 Retired Number
Joined: 12 Aug 2009 Posts: 38751
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Posted: Wed Sep 13, 2017 3:44 pm Post subject: |
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AirBnB |
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tlim Star Player
Joined: 26 Jun 2002 Posts: 6648
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Posted: Wed Sep 13, 2017 4:55 pm Post subject: |
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No. 17 wrote: | Housing inventory shortage. |
Because of NIMBY. |
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splashmtn Star Player
Joined: 30 Aug 2016 Posts: 3961
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Posted: Wed Sep 13, 2017 5:53 pm Post subject: |
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econ 101. supply and demand.
low supply super high demand.
and what makes matters worse. the first types of housing being built to help said supply is "Luxury" housing. |
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20,000 Retired Number
Joined: 27 Jun 2005 Posts: 29999 Location: Likely nowhere near you
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Posted: Wed Sep 13, 2017 5:55 pm Post subject: |
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not the first to ask _________________ Courage doesn't always roar.
Sometimes courage is the quiet voice at the end of the day saying...'I will try again tomorrow.' |
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ringfinger Retired Number
Joined: 08 Oct 2013 Posts: 29418
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Posted: Wed Sep 13, 2017 6:07 pm Post subject: |
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They are definitely not in sync with wage increases (or lack thereof) |
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Ziggy Franchise Player
Joined: 10 Feb 2005 Posts: 12712
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Posted: Wed Sep 13, 2017 7:00 pm Post subject: |
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I don't know, but I own a property that is in a rent-controlled area and my tenants are paying WAY below market value. Like almost $1000 a month below. I could raise the rent every year for the next 7 or 8 years and it'd still be below market value because I can only raise it 3% per year. Only one out of the original 3 roommates lives there but she keeps swapping out the other roommates, so the original lease is valid. Rent stabilization does work. Sometimes a little too well, unfortunately. |
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unleasHell Franchise Player
Joined: 16 Apr 2001 Posts: 11591 Location: Stay Thirsty my Friends
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Posted: Wed Sep 13, 2017 9:54 pm Post subject: |
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Buy as soon as you can... _________________ “Always remember... Rumors are carried by haters, spread by fools, and accepted by idiots.” |
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Goldenwest Star Player
Joined: 28 Nov 2009 Posts: 2801
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Posted: Wed Sep 13, 2017 10:17 pm Post subject: |
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ringfinger wrote: | They are definitely not in sync with wage increases (or lack thereof) |
Wages are lower today than in 1998. Yeah, rents and house prices are not in sync with wages. And i'm talking W-2 wage earners not those with suitcases full of cash.
the whole housing market is Fu**ed up. High rents are just part of the mess. You thought 08 was a bursting of a big Bubble. this one, when it gets here, will be bigger. |
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AY2043 Franchise Player
Joined: 26 Feb 2012 Posts: 10620
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Posted: Wed Sep 13, 2017 11:21 pm Post subject: |
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lakersken80 wrote: | AirBnB |
Big reason for sure. If you have property in or around a tourist area, you can make about as much in a weekend or two as you could renting it out for a month.
Vacation rentals are a huge problem in the neighborhood in SD where I grew up (and my parents still live). When I was a kid it was a pretty quiet, single family neighborhood. Now about 1 in every 7-8 houses on the street are essentially turned in to frat houses every weekend (especially summer), with large groups of 20-somethings partying until 3 AM. |
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Ziggy Franchise Player
Joined: 10 Feb 2005 Posts: 12712
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Posted: Thu Sep 14, 2017 8:31 am Post subject: |
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Goldenwest wrote: | ringfinger wrote: | They are definitely not in sync with wage increases (or lack thereof) |
Wages are lower today than in 1998. Yeah, rents and house prices are not in sync with wages. And i'm talking W-2 wage earners not those with suitcases full of cash.
the whole housing market is Fu**ed up. High rents are just part of the mess. You thought 08 was a bursting of a big Bubble. this one, when it gets here, will be bigger. |
Depends what parts of L.A. people are looking. Some areas have always been high. My income as a business owner is the lowest it's ever been since I've been owner (around 12 years), as min wage has been steadily increasing over the last several years. My employees have never complained to me about rent. I hear more complaints about our public transportation than rent. I think I've been giving them raises faster than the rate of rent increase, and I'm certain this isn't an isolated case.
My family has been in business for 40 years and we've never seen wage increases like we're seeing now. Typically they raise it 0.25 cents or 0.50 cents every few years. It's been going up $1 annually and will continue to do so until 2020. To be clear, all of my employees make above min wage, but raising min wage means we're just raising the floor, so it affects EVERYONE, even those earning above min wage. I'm already looking to sell my family run business while I can still show a steady flow of income, because I'll be out of business before it hits $15. So something has to give.
My employees have never had a hard time finding an apartment. Once in a while I'll write an employment verification letter and they find a place within a week or two. I'm not saying L.A. has cheap housing. I know it's more expensive here. Just saying that isn't anything new. And squeezing more out of businesses isn't going to change that. It's just going to drive businesses out of california, which is already happening. |
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pmacla Star Player
Joined: 31 Aug 2012 Posts: 7849 Location: Los Angeles, CA
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Posted: Thu Sep 14, 2017 8:55 am Post subject: |
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saw a chart yesterday that showed in the last 10 years rents have increased by 25 % while wages have decreased 8% |
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xxsicrokerxx Star Player
Joined: 11 Dec 2011 Posts: 2205
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Posted: Thu Sep 14, 2017 9:33 am Post subject: |
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I honestly believe they are asking us to move out of California |
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marga86 Star Player
Joined: 30 Jun 2008 Posts: 3442
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Posted: Thu Sep 14, 2017 10:10 am Post subject: |
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pmacla wrote: | saw a chart yesterday that showed in the last 10 years rents have increased by 25 % while wages have decreased 8% |
It's very likely that the chart is inaccurate.
There are certain things that are scaring the (bleep) out of people -- increasing wages is one of them. Couple that with low inflation, and people think it's a recipe for disaster.
I'm not sure where people are getting their information from, but the housing market is nothing like it was in 2008. If you don't believe me, go out and buy a home. The amount of well qualified buyers who are in a home and the ones out in the market looking is staggering. Very few people would lose their homes, even with an economic downturn.
People want to know why rent is so darn high; they want some sort of technical explanation, but it the answer is pretty straight forward: LA is just that expensive.
Do you know why rent is cheap in phoenix, the inland empire, etc? Well because it's not as desirable. You want cheap rent, you go to phoenix, you want to live in LA.. well, there's a premium. Not enough places for everyone, and demand is pretty darn high.. Basic economics. |
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pmacla Star Player
Joined: 31 Aug 2012 Posts: 7849 Location: Los Angeles, CA
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Posted: Thu Sep 14, 2017 10:41 am Post subject: |
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marga86 wrote: | pmacla wrote: | saw a chart yesterday that showed in the last 10 years rents have increased by 25 % while wages have decreased 8% |
It's very likely that the chart is inaccurate.
There are certain things that are scaring the (bleep) out of people -- increasing wages is one of them. Couple that with low inflation, and people think it's a recipe for disaster.
I'm not sure where people are getting their information from, but the housing market is nothing like it was in 2008. If you don't believe me, go out and buy a home. The amount of well qualified buyers who are in a home and the ones out in the market looking is staggering. Very few people would lose their homes, even with an economic downturn.
People want to know why rent is so darn high; they want some sort of technical explanation, but it the answer is pretty straight forward: LA is just that expensive.
Do you know why rent is cheap in phoenix, the inland empire, etc? Well because it's not as desirable. You want cheap rent, you go to phoenix, you want to live in LA.. well, there's a premium. Not enough places for everyone, and demand is pretty darn high.. Basic economics. |
to qualify that chart it was talking about LA rental prices and there are enough plac to live in LA true but there are not enough of affordable units, they are building more and more "luxury" apartments driving up the market and not enough affordable units leading to more homelessnes which in LA these days looks like multiple old RV's parked on the street everyday and night all over the place |
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adkindo Retired Number
Joined: 16 Jun 2005 Posts: 40345 Location: Dirty South
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Posted: Thu Sep 14, 2017 12:50 pm Post subject: |
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what is rent for like a 2 BR / 2 BA apartment in a decent (clean, lower crime, etc.) area of LA? a 3 BR / 2 Bath house? |
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marga86 Star Player
Joined: 30 Jun 2008 Posts: 3442
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Posted: Thu Sep 14, 2017 1:53 pm Post subject: |
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adkindo wrote: | what is rent for like a 2 BR / 2 BA apartment in a decent (clean, lower crime, etc.) area of LA? a 3 BR / 2 Bath house? |
I pay $1,600 for a 1BR in an ok area.
3BR/2BR in a decent neighboorhood is around $550k - $750k (from what i've seen).
I doubt you'd be able to get anything under $650k in a city like torrance though. |
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pmacla Star Player
Joined: 31 Aug 2012 Posts: 7849 Location: Los Angeles, CA
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Posted: Thu Sep 14, 2017 2:15 pm Post subject: |
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adkindo wrote: | what is rent for like a 2 BR / 2 BA apartment in a decent (clean, lower crime, etc.) area of LA? a 3 BR / 2 Bath house? |
2 br in LA as described 2400+ a month |
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LakersRGolden Star Player
Joined: 13 Jan 2002 Posts: 7910 Location: Lake Forest
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Posted: Thu Sep 14, 2017 6:10 pm Post subject: |
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1) Millennials are shifting to a preference to rent
2) The mortgage crisis has caused non millennials that could afford to buy to stick with renting and splurging a little.
3) Job security is shrinking, so a non-mobile asset can cause problems. |
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Omar Little Moderator
Joined: 02 May 2005 Posts: 90299 Location: Formerly Known As 24
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Posted: Thu Sep 14, 2017 7:27 pm Post subject: |
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Ziggy wrote: | Goldenwest wrote: | ringfinger wrote: | They are definitely not in sync with wage increases (or lack thereof) |
Wages are lower today than in 1998. Yeah, rents and house prices are not in sync with wages. And i'm talking W-2 wage earners not those with suitcases full of cash.
the whole housing market is Fu**ed up. High rents are just part of the mess. You thought 08 was a bursting of a big Bubble. this one, when it gets here, will be bigger. |
Depends what parts of L.A. people are looking. Some areas have always been high. My income as a business owner is the lowest it's ever been since I've been owner (around 12 years), as min wage has been steadily increasing over the last several years. My employees have never complained to me about rent. I hear more complaints about our public transportation than rent. I think I've been giving them raises faster than the rate of rent increase, and I'm certain this isn't an isolated case.
My family has been in business for 40 years and we've never seen wage increases like we're seeing now. Typically they raise it 0.25 cents or 0.50 cents every few years. It's been going up $1 annually and will continue to do so until 2020. To be clear, all of my employees make above min wage, but raising min wage means we're just raising the floor, so it affects EVERYONE, even those earning above min wage. I'm already looking to sell my family run business while I can still show a steady flow of income, because I'll be out of business before it hits $15. So something has to give.
My employees have never had a hard time finding an apartment. Once in a while I'll write an employment verification letter and they find a place within a week or two. I'm not saying L.A. has cheap housing. I know it's more expensive here. Just saying that isn't anything new. And squeezing more out of businesses isn't going to change that. It's just going to drive businesses out of california, which is already happening. |
What business are you in? _________________ “We must always take sides. Neutrality helps the oppressor, never the victim. Silence encourages the tormentor, never the tormented.” ― Elie Wiesel |
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vanexelent Retired Number
Joined: 17 May 2005 Posts: 30081
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Posted: Thu Sep 14, 2017 8:47 pm Post subject: |
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Goldenwest wrote: | ringfinger wrote: | They are definitely not in sync with wage increases (or lack thereof) |
Wages are lower today than in 1998. Yeah, rents and house prices are not in sync with wages. And i'm talking W-2 wage earners not those with suitcases full of cash.
the whole housing market is Fu**ed up. High rents are just part of the mess. You thought 08 was a bursting of a big Bubble. this one, when it gets here, will be bigger. |
Home ownership is near all time lows, so a bubble is less likely. |
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dubaholic1 Star Player
Joined: 23 Dec 2004 Posts: 3016 Location: Quality over Quantity
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Posted: Thu Sep 14, 2017 9:45 pm Post subject: |
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airbnb has caused an INSANE jump in rent prices.
Los Angeles does have a housing shortage, and unfortunately the units that are being built are not for the average person.
this sounds awful but some days I PRAY for an earthquake so people will get the hell out of here. |
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audioaxes Franchise Player
Joined: 26 Apr 2004 Posts: 12573
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Posted: Thu Sep 14, 2017 9:55 pm Post subject: |
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last year my wife and I made the strategic decision to sale our 4 bedroom 4 bath home on quarter acre lot during the summer and rent in an apartment in hopes we find a winter deal on our next home...
our 2 bedroom 2 bath apt rent on a luxury apartment 5 miles away from our previous home cost more than what our mortgage was.
The cost of entry has now shot up to unrealistic amounts in most areas but from as early as 2 years ago I was telling everyone I knew to buy instead of rent even if it meant scrapping in at 3.5% down and settling on whatever you could afford. _________________ (bleep) Kawhi |
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