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Slowdown gets O.C. renters unprecedented pricing

October 19th, 2009, 11:01 am · 29 Comments · posted by Jon Lansner

With landlords scrambling to lure in tenants to fill empty apartment units by offering numerous discounts, Insider Q&A figured we’d ask “What’s up?” of Judith Legan, executive director of the South Coast Apartment Association. Her association represents more than 95,000 apartment homes in Orange and southern Los Angeles counties.

blog-aptUs: Are rents still falling?
Judith: We’re seeing signs that the market is beginning to stabilize, but it may have been a seasonal bump as summer is generally a busy time, with people wanting to get settled in a new home before school starts or a job change. Like other sectors of real estate, the apartment market is tied heavily to job growth.

Us: Are we seeing new or more incentives?
Judith: Yes. As is typical in down markets, apartment owners are being very inventive in the ways they drive traffic. Western National, for example, offered a “Layoff Protection Plan.” Irvine Company created a special incentive for recent college graduates. Check apartment Web sites, rental housing magazines and housing sections of newspapers to find some clever promotions.

Us: Where is the market the softest, high or low end?
Judith: The apartment market is experiencing the same challenges at the higher end as the rest of the market. Renters are generally looking to cut expenses. What does that mean for consumers? An unprecedented opportunity for those with stable jobs to move up.

Us: What advice would you give renters?
Judith: If you’re in a stable situation, consider moving up. Now is an outstanding time to get into a coastal or resort-style property offering incredible lifestyle opportunities such as wine-tastings and cooking demonstrations. If you’re struggling, or have questionable credit, don’t give up on finding an apartment. In these challenging times, many landlords are willing to work with you.

Us: When will it turn?
Judith: Soon, we hope. The rental market is tied heavily to job growth. Orange County owners are generally optimistic because Orange County is such a desirable place to live and it benefits from a diverse economy. That’s why we think we’ll recover first and quicker. In this recession, many people lost their homes - in addition to their jobs. I think we’re starting to see a shift in thinking. There’s a growing segment of the population that is beginning to prefer the flexibility and lifestyle of renting over homeownership.

Other Insider Q&As …

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 29 Comments

  • SC2 says:
    October 19, 2009 at 11 am

    Rents have gone down a lot. Get ready for damage control / spin by tracker, shock, gunner, etc.

    • Gunner says:
      October 19, 2009 at 8 pm

      Rent has gone down “alot”? Please explain… I think there was a 2% drop in median rent…compare that to a 20% gain in median home price since Jan 09. So if 2% is alot, then 20% is monumental!!

  • BeyondTheMargin.net says:
    October 19, 2009 at 11 am

    Despite trying the past two years (this is the third year of my lease), I was unable to get better terms (not only rent, but a shorter lease or more flexibility)… maybe people in low demand districts are having to negotiate but not all regions.

    http://www.beyondthemargin.net/2009/09/keynesian-economics.html

    • SC2 says:
      October 19, 2009 at 11 am

      We live in a high demand / high rent district, and they were trying to do whatever they could to keep us there w/major rent reduction, add’l garage. It all comes down to jobs.

      • Tracker says:
        October 19, 2009 at 1 pm

        More lies. You already told us you pay $1,600 for a townhome. Must be cruddy. How perfect for you!

        • SC2 says:
          October 19, 2009 at 1 pm

          Your wrong, once again. 30% reduction and an additional garage spot since we have multiple cars, nicest building around - yeah, real rough…

          That’s OK - your negativity demonstrates your jealousy since our place is probably much nicer than your’s, but you pay 2x as much, and on a depreciating asset.

          And again, you proclaimed you would never respond, yet your continue to do so - more lies, but we’re used to that.

          What is perfect for you are your stained panties - what’s wrong, too poor to buy new ones? Apparently. House poor, bank poor. LOL!!!!!

        • SC2 says:
          October 19, 2009 at 1 pm

          Poor tracker, becoming unglued. Todays’ rental and REO news not good for bagholders. The self-destruction continues - watching tracker is a comedy.

        • Tracker says:
          October 19, 2009 at 1 pm

          You live in a pigsty, you pig.

        • SC2 says:
          October 19, 2009 at 1 pm

          Great response tracker - it shows your desperation and jealousy. You truly are a comedy of errors, especially since your’re the little piglet with red and brown tracks in her little panties. LOL!!!!

        • se says:
          October 19, 2009 at 4 pm

          I read somewhere that Tracker was about 35 years old and still living with his parents.

        • Tom M says:
          October 19, 2009 at 9 pm

          Are these responses part of your “RE Professional” training?

        • Mulliganville says:
          October 19, 2009 at 9 pm

          Be objective Tom…each of them is behaving like a 5 year old.

      • Surprised says:
        October 20, 2009 at 10 am

        I am out of the loop on this one, but $1,600 for a Town Home does not seem very hight. I lived in a Town Home when I got married. I loved it. Lots of storage. Never heard a neighbor. One of the homes in our neighborhood burned to the ground, but the attached unit was not touched. How in the world they build fire proof walls I will never know.

    • MVguy says:
      October 19, 2009 at 12 pm

      That is insane. Move! I live in a nice part of MV in a 3bd/3ba house for 500 less than 3 years ago. And I don’t have to pay prop taxes on what is now worth 600 grand! And I fix nothing… It’s never been a better time to rent…

    • OC CPA dude says:
      October 19, 2009 at 12 pm

      What do you consider a low demand area? All of my friends that rent in Irvine, Newport, or Laguna Beach have received fantastic reductions in their rent. Most of them live in newer places with lots of amenities.

      Maybe some of the lower rent areas have not seen as big of declines as people try to save money by moving to more affordable areas, but anything in the mid to high end has experienced pretty significant rent reductions.

      Where do you live Margin?

  • Jc says:
    October 19, 2009 at 11 am

    Ok. this is your “Department” But for what I remember one week salary was suppost to go to rent.

    Was that long ago…? wow time goes by.

  • Tracker says:
    October 19, 2009 at 1 pm

    The more things change, the more they stay the same.

    Closed today:

    3 Morning Glory, Irvine
    3/2.5/2,022

    $940,000

    That’s almost double its 2001 purchase price.

    Sooooeeeeeeyyyyyyyyy! Snort. Come out little pig!

    • SC2 says:
      October 19, 2009 at 1 pm

      Roll around in your stained panties little piggie. Your pathetic - is that all you can do, copy and paste like a 5yr old. You’re a comedy.

    • SC2 says:
      October 19, 2009 at 1 pm

      So I guess we know you’re from farm country - or maybe that is your mating call. Good little piggie - keep rolling in your stained undergarments. Good job.

    • SC2 says:
      October 19, 2009 at 1 pm

      It is 2009 today tracker - why are you comparing to 2001? Guess piggies like tracker aren’t that bright and forget that they criticized the exact same thing piggie tracker is doing now. Dumb piggie, I think farmer John is going to have to put you out of your misery.

    • Tom M says:
      October 19, 2009 at 9 pm

      Why don’t you post the link for this address on Redfin?

  • SC2 says:
    October 19, 2009 at 3 pm

    Get set for another potential good stock day tomorrow as people like Apple and TI…

  • se says:
    October 19, 2009 at 4 pm

    AAPL went from about 189 1 minute b4 it’s earning announcement at 1:30pm to as high as about 205 after hours today. Right now at 5pm it’s $202.35.

  • shockg says:
    October 19, 2009 at 9 pm

    “Yippie I am 55 years old and I love renting an apartment! Now drop your prices 20% so I can get the home I deserve!”