With home prices declining, mortgage money hard to come by and a shaky economy, you would think renters would be staying put.
But a new report from the National Multi Housing Council says that, based on lease renewal rates at the big complexes that its members represent, tenants are moving just as much as ever.
The apartment industry calls this “resettling.” Basically, during periods when home prices are low and money is cheap, apartment owners have to step up concessions to keep tenants from moving out to buy. That often allowed tenants to move into nicer apartments than they normally could afford.
Now the reverse is in effect, rents are returning to normal and tenants who moved up before are downsizing. Meanwhile, renters who can afford to buy but are waiting out the market are moving up to larger, more costly apartments.
“This ‘resettling’ helps explain why lease renewals are not up,” concludes the report. “More people are renting (occupancy is up), but they are moving to a different property based on their personal finances and the new market conditions instead of renewing their existing lease.”
For other rent news:
- Anaheim adds affordable apartments
- O.C. 8th lowest in vacant apartments
- O.C. renters seek more roommates
- Foreclosure refugees skipping apartments
- North County sees biggest rent hikes
- O.C. calls up 23% for advice on late rent, house payments
Find out more about: HOME PRICES | INVENTORY | RENTS | FED | MORTGAGE RATES | FORECLOSURES | OUR POLLS | GARDENS
–Now the reverse is in effect, rents are returning to normal and tenants who moved up before are downsizing. Meanwhile, renters who can afford to buy but are waiting out the market are moving up to larger, more costly apartments.–
I could have sworn rants just said rents were falling…
What the h—are we supposed to argue about here?
Many renting will want to move into a home in 5 years all at the same time. Making home values double at this price point. Isn’t this fun!
“What the h—are we supposed to argue about here?”
This is a poorly written piece of hack journalisim, who’s only cite is a industry advocacy agency with little objectivity?
“renters who can afford to buy but are waiting out the market are moving up to larger, more costly apartments”
“What the h—are we supposed to argue about here?”
This is a poorly written piece of hack journalisim, who’s only cite is a industry advocacy agency with little objectivity?
“renters who can afford to buy but are waiting out the market are moving up to larger, more costly apartments”
Hogwash.
mav Says:
August 21st, 2008 at 7:35 am
“What the h—are we supposed to argue about here?” whether the trough OC median is going to be….in the $300Ks…..or the $200Ks
2007 MHI of 78k x 3.5 = $273K
There you have it.
Forget this. Bolt or Phelps?
Pshaw, you have to do better than that.
Bogey - your GG palace is waiting - good luck!
That is funny…3.5…since it has never happened. I suppose anything is possible.
Now, could Bush just go handle Putin and get the oil moving back in the proper direction.
I recently traded up from an apartment to a condo and we are pretty stoked. This is perfect for my husband and I until we finish school and wait things out until we are in a position to buy in a few years. I have a family member who was about to buy a new condo, but backed out before signing anything, liked the neighborhood where we moved to, and traded up from her apartment where she was waiting and moved into one of those “apartment homes” a couple of miles away.
I think this “trading up” — or biding your time in something a step above apartment renting — is the way to go for now if you’re waiting things out. There are too many condos that can’t sell so more are coming onto the rental market, some of which are at affordable rents. We’re in our late 20s and really needed to feel like we were in a “real” place (as opposed to some cruddy apartment), so this is great for now…
I don’t know about condo renting right now. I’ve tried to view some over the past couple of weeks and have been jacked around by the realtors. They are pulling the same stunts they did back in 2003 when I bought a condo. For example, they herd a group of potential renters together to view the property at the same time, creating a false sense of demand and urgency; they ask for huge security deposits (try $2500 to $3000); they try to talk you into buying; and they happen to be out of town at the same time they post an ad for a rental and you can’t view the property.
To Mulliganville:
About your comment to me “Move to Texas “they are down” Just pick either Austin, Dallas, or Houston…the strongest economy being in Houston by far.”
I’ve said this before on this blog and I’m going to say it again. I hate when people tell me to move. My husband and I were born and raised here. This is our “home town”. Why should we have to move? This is where our family’s are, this is home.
MULLIGANHEAD IS A GOOFBALL
DONT WORRY WHAT HE SAYS “THEY AREDOWN”
They are Down:
There are people from Beverly Hills, Manhattan, Marin, West Palm Beach, Lake Tahoe, and yes parts of Orange County that cannot afford to purchase where they grew up. I was not being serious about you actually picking up and moving. Just pointing out that if owning a home is so important, there are locations where it can be done, very nicely done mind you…you will notice I interjected some levity with the post regarding the size of the insects that can carry your small kitten away. :)
The problem many locals have here are in line with the locations listed above. Why are Santa Ana, GG, and Anaheim sliding south in price so much harder than other locales? They are just not preferred. The preferred areas will always have upwards pressure on pricing. Locals in Hawaii cannot afford to buy homes in the preferred areas of the islands either. It is just simple economics.
Again, it was just a simple example…did not mean to ruffle your feathers.
hey gilligan– I didnt say it the LA TIMES did
damn cant you even read- friggin fruit loop realterd–
BOLT he blew away records that stood for many
years and didnt need teammates for his- thats
not to take anything away from mr phelps- but
BOLTS domination was mind boggling- setting
records while looking backwards unreal
funny how the realtors have to try and gang up
on the blogs to try and make their points- friggin girlie men
provider Says:
August 21st, 2008 at 8:25 am
Pshaw, you have to do better than that.
# Active Buyer Says:
August 21st, 2008 at 8:36 am
Bogey - your GG palace is waiting - good luck!
LOL!!!
IT IS EVIDENT OUT OF WORK OC RE PEOPLE DO NOT HAVE GOOD POKER-FACES.
YEAH, IT SHOWS.
ON THE BRIGHT SIDE, YOU COULD ALWAYS MOVE TO TEXAS
Nice try Bogey - Primary source of income is Engineering, secondary is collecting rent.
Well trying to stay on topic. The complex I live seems to be getting cleaned out. More and more people are moving out every month with few moving in.
I plan on buying sometime in the next oh..Ill say 6 to 18 months….I have plans on moving even though my place is small. Moving sucks and I am not going to attempt to do it twice in that period of time.
Truthiness:
I think all the Jamacian’s are juicin’ if you know what I mean.
Phelps, on the other hand, is the real deal.
Really? Well, he makes everyone else look like they’re standing still. Agree with you on Phelps, we will never again see anyone like him. How ’bout our homegrown superhero Jason Lezak? No eight golds without him.
I need help with my Real Estate
Many Homeowners and Real Estate Investors need help today.
The Real Estate market or should I say the Economy in the U.S in general made a lot of Homeowners and Real Estate Investors really upset.
Investors are loosing money and Homeowners are loosing their homes, and it all happen so fast we couldn’t even realize what happen to us.
Many Real Estate Investors and specially Homeowners that are not in Real Estate to make money but just to have a home for their family got hurt and don’t know what to do and how to save them selves.
So here is a great tip that hopefully will help you with your mortgage and your Real estate investment.
Hard Money Lenders and Private Money investors.
Hard Money Lenders and private investors will help you with your mortgage so you will loose your home or your investment for a higher interest rate.
I get a lot of calls every day from investors and homeowners that are knowledgeable enough to call a hard money lender. But many of you that are not knowledgeable I just hope you’re reading this article, because I think it is your only way out today.
Banks can’t qualify anybody anymore, it’s sad but it’s true.
So homeowners are loosing their homes, and some homes have equity of few hundreds thousand in them. Because they don’t have the knowledge to call a hard money lender their losing their homes and their money.
If you’re reading this article we can help you save your investment and your home, just call a hard money lender now and save your real estate.
Good Luck.
Why go with Hard Money or Private Money Lenders?
Many Homeowners and Investors ask them selves this question, but sometimes you need to read more to get some knowledge and than you will understand if Hard Money can really help you.
First of all we understand that Hard Money Lenders are privately owned by a person or a small entity, basically it can be someone that have some money in the bank and he understands that to loan his money will be a much faster way to make more of it.
Example: You have $100,000 in your bank
Option 1- you will put the money in a CD account and make 4.75% APR.
Option 2- You will loan your money and make 12% APR and charge 5- 10 points on the loan.
So that’s what private Money Lenders do, they go with the second option- Smart.
So why go with a Hard Money Lender?
1. Faster funding time, 5-7 days
2. Less documentation to show.
3. No credit is OK.
4. Large Loan amounts are OK too, up to $500,000,000
5. Some Hard Money Lenders will fund deals out of the country as well.
As you can tell today it is a much better, faster and easier way to go.
You’re probably asking your selves about the costs for this loan?
The Interest rates are not more than 12%, while with a Bank it will be probably 8.5% if they can do the Loan at all.
The points will be not than 10 while Banks will charge up to 3.
Now that you understand the difference you can make a decision, to approach a Hard money Lender or just go with your Bank.
Good grief, learn english.
Hard money lenders will help you to “loose” your property? I agree with you completely.
Dude, even your website is full of spelling errors. It reflects poorly on your firm.
Dude, you bagged Mirthala Salinas? Get the hell outta town!
Carefull guys,
I clicked on his site and immediately got a VIRUS WARNING !
Another salesman leaching off Lansner’s traffic….
If you have equity and don’t mind an 8 or 9% rate then hard money may work. The only reason for hard money, if you have 100k in equity, would be if your credit is bad or you are so in debt that your DTI is too high to qualify. The hard money lenders that I dealt with wanted to see 65% or lower LTV, some went as high as 70%. If you really want to keep the house and you have the equity by all means but you might consider selling the house, rebuilding your credit and buying another in 2 or 3 years. If you have a 100k + as a down you should be able to clean your credit up and be in a high fico in no time. In 3 years you will qualify for a 1st time homebuyer program anyway and the fico requirements are low.
Just a thought but please do your homework and decide what is best for your situation. Don’t listen to anyone hear because they don’t know your exact situation but I personally agree with provider on the hard money.
Oops… I meant “leeching”. Looks like I have spelling issues of my own.
Thanks for the heads up pdu!
I am at work and I would be pissed if I downloaded a virus and had to call IT.
Don’t forget the points!
Yup the points and fees will eat up a lot of that equity. I remember them charging 3-4 points right off the bat and junk fees up the ying! The only one I ever funded was for a guy going through a divorce and he just needed the cash out fast to cut a deal with his ex wife’s lawyer. He refinanced the loan a couple months later. The hard money can get funded in a few days.
Reg-Z doesn’t apply to these guys.
I only ever did one and I always wondered about the fact they never asked for any income docs or if they even had a job. I guess that’s why!
Why again are they not subject to section 32?
Active Buyer Says:
August 21st, 2008 at 10:41 am
Nice try Bogey - Primary source of income is Engineering, secondary is collecting rent.
OF COURSE IT IS, LOL …. YOU CAN BE WHATEVER YOU WANT TO BE ON THE INTERNET
IF YOU REALLY WERE AN ENGINEER, YOU WOULD KNOW OC RE IS GOING DOWN, DOWN, DOWN AND THAT NOW WOULD BE THE WORST TIME TO BE AN ACTIVE BUYER.
They are exempt because they are “finance lenders”. At least that’s how I recall it. The Register story above makes the same assertion:
“Hard-money lending is a high-stakes business. Lenders typically demand 12 percent and up – sometimes way up – plus points. Total charges can run several times a conventional loan.
Most lenders can’t charge that kind of interest. It’s illegal. California’s 90-year-old, voter-approved usury law, enshrined in the state Constitution, generally forbids any lender from charging more than 10 percent interest.
But state law exempts “finance lenders,” a category that embraces 7,500 businesses, including car dealers, furniture and carpet stores and hard-money lenders such as Helsing. They can charge whatever the market will bear. ”
We have too many cooks in the kitchen, if you ask me.
why so testy rants…you posted it under your handle…but you do not want to claim the article as “yours”–what a nancy girlie man.
People in this county are leeches, living off the incomes of the middle class. The reason home prices are elevated here is because investors will pay more for houses than a sensible would be homeowner will pay for a home which increases the rent cost, thus the home costs.
Not to mention “investors (read leeches)” who buy 30 homes at 50 cents on the dollar. Why cant a person buy 1 house for 50 cents on the dollar?
Preferential rich folk treatment, should be investigated.