August 18, 2012

Rents rising on Peninsula, SF Chronicle is shocked, shocked

Looks like the SF Chronicle just discovered that the rental market is as hot in the Valley as it is in The City.  Use this open thread to mock their amazing discovery.

Peninsula rents going the way of SF and Manhattan

San Francisco and Manhattan are famously unaffordable cities to rent in– not that such information discourages people from renting in either location. High demand, of course, is part of the sky high prices.

But according to a new study by Apartment List.com, Peninsula rents are quickly  rising to rival those of San Francisco proper.  Over both 12-month and 18-month periods in the area as a whole, rents have risen an average of 10% and 18%, respectively. Here’s a run down of their data, showing rent changes for different sized units. (UPDATE: This chart is a corrected version of the previous one that contained incorrect percentage numbers.)

120817-rentals-chart

And since this is an Open Thread, you can also comment about what your own experience has been with rentals, or home prices, or any open houses you look at today, or how much money you made shorting Facebook.

Comments (27) -- Posted by: madhaus @ 5:09 am

27 Responses to “Rents rising on Peninsula, SF Chronicle is shocked, shocked”

  1. waiting_for_the_fall Says:

    Didn’t someone who recently advised everyone to buy Apple before it goes to $700 also say they purchased Facebook at $28?

  2. Petsmart groomer Says:

    > [...] or how much money you made shorting Facebook.

    I don’t always buy stocks, but when I do, I prefer Petsmart.

  3. nomadic Says:

    Good point, #1. Maybe it’s time to sell the AAPL shares I bought last year at $332.

  4. waiting_for_the_fall Says:

    #3- I get the strong feeling this is the top of the market similar to Dec 2007, right before everything started heading south.

    Something bad is in the air and it won’t be good. It’s probably a combination of the Euro about to break up, China’s hard landing and North Korea allowing women to ride bicycles.

  5. nomadic Says:

    Haven’t you been waiting for the fall for years now though? Are you a pessimist or really patient? It sounds like even Gilroy Alex has gotten more optimistic.

  6. Real Estater Says:

    >>Didn’t someone who recently advised everyone to buy Apple before it goes to $700 also say they purchased Facebook at $28?

    When the call on APPL was made, the stock was in the $570 range.

    The second advice was to buy FB on weakness. Weakness is in the next few weeks. If you bought at $28, you should have exited at $33.

  7. madhaus Says:

    Now is the time to buy! Now is ALWAYS the time to buy!

  8. Real Estater Says:

    I advised a few years back that rent was out of step with home prices. The inevitable result is for rent to catch up. Renters were living on borrowed time. The short-sighted rented, and they are on the run now. As a result, many renters are overbidding to get into home ownership. Rent has more room to rise, and so do home prices. Remember, home prices in RBA doubles every 10 years on average. If you don’t believe it, you are betting against history.

  9. Real Estater Says:

    Now is no longer the best time to buy a house (last year was the best time), but it is a better time than next year. Can you afford to wait?

  10. Divasm Says:

    That’s why I bought last year. But now that I’m hearing about women in North Korea riding bicycles, I’m worried. What’s next? Cats and Dogs living together, mass hysteria!

  11. SEA Says:

    #9- If now is not the right time to buy, should I wait?

  12. herpderp Says:

    We’re still doing the “BUY RIGHT NOW” bullshit? Really? Rent: $1600 a month. Mortgage same property: at least double. Plus insurance, plus HOA, plus the cost of being a homeowner, and people who actually work for a living realize it’s not in the cards. Rents are going to go up because the people who’re buying a house because they have to (hubby and I have four cats, we had to move out of our apartment, and while landlords are often cat-friendly they are not often “four-cat friendly”) are going to, and the rest of us who work (or in my case, worked) in the BA and feel poor for “only” making $100,000 and not playing the investment game are going to keep renting because we don’t have 25% to put down for the privilege of being a slave to a mortgage.

    Also note: house bought outside of Seattle, where I moved after many factors (not the least of which being I wanted to buy a house and couldn’t) drove me away from the RBA. But please, tell me how awesome you are again.

  13. Real Estater Says:

    #11,

    No.

  14. Sunny(vale) Kim Says:

    The second advice was to buy FB on weakness. Weakness is in the next few weeks.
    —-

    Does that mean Real Estater didn’t advise to buy FB for $28?

  15. Crissa Says:

    Buying now, at the tail of the market before any new supply arrives?

    There’s still a huge supply of limbo property not on the market and few new buildings ready. Of course price spiked this year.

  16. Crissa Says:

    Buying now, at the tail of the market before any new supply arrives?

    There’s still a huge supply of limbo property not on the market and few new buildings ready. Of course price spiked this year.

  17. Crissa Says:

    Has anyone noticed that Zillow estimates seem to have been ret-coned for the last six months? The history data for two months ago isn’t what it was last month… the year’s curve is all gone, replaced with a flat line. Weird…

  18. nomadic Says:

    #14, it was actually $26.

  19. Real Alex Says:

    Petsmart, Facebook, Apple… They’re all poop! Buy stock with THE potential, like this one: http://finance.yahoo.com/q?s=MJNA

  20. SEA Says:

    Moving parts

  21. Banker East Says:

    Kim,

    Just checking. Have you ever taken any advice? Seems like you are always taking a position or diminishing some one. Does that make you feel better than others?

  22. Michael Boltonestater Says:

    Banker East, do you know who else writes “some one” and not “someone”?

  23. Banker East Says:

    Kim, when did you sign up for an American name?

  24. Sunny(vale) Kim Says:

    Banker East, do you know who else writes “some one” and not “someone”?
    —-

    That goes along with the same theme as “sky scrapers” and “Star Bucks”. :)

  25. ms Says:

    12: 1.6K is cheap for rent. even for a one-bedroom, even in the not-really Bay Area. I don’t know of anyone who will rent to someone with four cats or dogs anywhere in the Bay Area in that price range, or even much above.

  26. SEA Says:

    Low eighteens, is it time to buy more FB on more “weakness?”

  27. Sunny(vale) Kim Says:

    Of course we are buying in “weakness”, on $18.88 trigger point. We will buy lot more when it gets $8.88.
    The number 8 is always lucky for us.


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