Apartment prices up...

[Legend]

Originally posted by: TheSlamma
LMFAO with gas prices these days in order to keep your utilities under 30% you better keep your house set to 42 degrees.

In the south, I turn off heat during the day. Come back, turn it on to about 68. Utilties are about $50/month in winter, $30/month in the Summer.

 

[TheSlamma]

I installed a new Trane X90 and my programmable T-stat sits at 56 degrees for 23.5 hours, it only turns to 62 degrees for the 1/2 hour I take a shower.

$40 Elec bill, $85 gas. And my water heater is a tankless Gas. Gas is a r@pe

You wouldn't survive one night in my house if you need to run at 68 degrees

 

[piasabird]

An Average price is the average price of all of those people that paid.
In this average are millionaires paying for their Penthouse apartments or suites. The Well-Off can skew an average like this. A lot depends on how you look at the data.

For instance you could just take 1,000 rentals and say X number of rentals cost XXX dollars. This would give you a different kind of data.

Typically large Cities have a higher cost of living, the closer you get to the center of the business district. I have seen housing prices realy rising quite a bit for the middle class. This is the real reason many people are leaving urban areas.

 

[Stifko]

Originally posted by: piasabird
An Average price is the average price of all of those people that paid.
In this average are millionaires paying for their Penthouse apartments or suites. The Well-Off can skew an average like this. A lot depends on how you look at the data.

They could have reported the median price too. That would have been more accurate, no?

I guess I have a pretty good deal at $1100.00 in manhattan. My landlord offered me $30K to move out, but I am not going to take that deal.

 

[Kibbo86]

Snapshots of the real estate market can be very unreliable, even without possible bad samples such as in the example above. There is often a lag of a couple of years when there is a rental housing shortage.

Of course, there is the question of what to do in the meantime, while we wait for the market to adjust.

 

[shurato]

I don't make minimum wage, I make a nice living but am still heavily in debt because of college and credit cards. Rent prices have become rediculous. I used to live in a 2 br apartment with my parents and brother during the mid to late 90's for around 700ish for rent in a decent suburb of Maryland. I'm looking to find a new apartment (I rent a room in a townhouse right now) and it's basically about 1k minimum a month for a 1 bedroom apartment unless you want to live in a tough neighborhood. Been there done that in the City near the ghettos.... don't like the crime and rats... The prices have gotten out of control for renters. I can somewhat understand the increases in price because of the housing market but it's rather unfortunate renters face such steep increases...they are renting to rent, not renting to own.

 

[zendari]

Originally posted by: Tab

Originally posted by: homercles337

Originally posted by: Helenihi
What is this rule that only 30% of your income should go to housing? That's retarded.

I was taught 25% in my personal finance course in college. This number is not random, its actually rather well estabilished.

How is that number established?

It's an estimate, given an average income of say $60k, factoring in other costs such as auto insurance, food, etc.

 

[Future Shock]

Originally posted by: Stifko

Originally posted by: piasabird
An Average price is the average price of all of those people that paid.
In this average are millionaires paying for their Penthouse apartments or suites. The Well-Off can skew an average like this. A lot depends on how you look at the data.

They could have reported the median price too. That would have been more accurate, no?

I guess I have a pretty good deal at $1100.00 in manhattan. My landlord offered me $30K to move out, but I am not going to take that deal.

Rent controlled, right? My best friend is being offered $50k to move out of his studio a block from the Empire State, which he rents for $1700. There are lawyers who specialze in Manhattan rent control move-out negotiations, and usually just take a percentage. You may wish to find one - I think you can do better than $30k depending upon the neighborhood.

FS

 

[arsbanned]

Originally posted by: Helenihi

Originally posted by: dahunan

Originally posted by: Helenihi
What is this rule that only 30% of your income should go to housing? That's retarded.

How much should it be?

Why should there be any percentage? Its an idiotic random standard.

Maybe when trying to figure out how affordable housing, we just see if people can afford housing, regardless of what combination of their income they spend on their various bills?

Why 30? Why not 15? Why not 10?

Ask the economists. This isn't something someone made up randomly.

 

[EatSpam]

Originally posted by: dahunan

Originally posted by: Helenihi
What is this rule that only 30% of your income should go to housing? That's retarded.

How much should it be?

Preferably, one should share a bunk with another corporate slave, but unfortunately, we haven't reached that point yet.

Oh damnit, channeling Zendari again.

 

[Macro2]

Clinton and Congress gave homeowners a tax free $500k capital gain in 1996. Since then they have flooded south /to the coasts and driven prices through the roof. The younger generation is screwed. Now they can't rent? Shucks.

 

[Mursilis]

Originally posted by: Vic
With the housing boom, rents have been very stable for several years. Regardless of whether the boom continues or the bubble bursts, I expect that trend to continue, as the hardest hit in a bubble will be investment property owners desperate for cashflow (in the absence of value appreciation). In fact, a bubble might put a good deal of rental housing back on the market, as a lot of "flippers" and "churners" have been holding properties vacant while making all their money off appreciation.

But seriously, if you're going to complain about housing prices, you might want to look at the laws in your area that limit housing development. Supply and demand is crucial to rents.

And yet it's frequently the same people lamenting the lack of "affordable housing" who are leading the charge to stop development. The Washington Post had an interesting article about Fairfax County in Northern Virginia, one of the most affluent counties in the nation. In the '90's, the county added only one residence for every 2 new jobs (so of course several years of 30%+ increases in home prices followed), yet now they wonder why most of the county's police officers and teachers can't live there. Hmmmm..... Econ 101, anyone?

 

[conjur]

Originally posted by: Genx87
That is a cute, how many people do you know are making minimum wage?
Even when i was in highschool McDonals was paying 8-9 bucks an hour to be a cashier and this is when the min was 4.75.

*cough*BS*cough*

Apartment prices here were dropping a couple of years ago to compete with the drop in mortgage interest rates (people were buying homes vs. renting). However, the firesale on apt. leases is over now.

And, fwiw, I got to see a gorgeous 59th floor apt. in The Bund section of Pudong in Shanghai. The owner was offered $12million RMB (about US$1.5million) and construction is only about 95% complete. Gorgeous view from it, though.

 

[Meuge]

Originally posted by: Future Shock
So our economic recovery looks like this :

WASHINGTON (AP) -- The cost of rental housing has increased faster than wages, making it increasingly difficult for low-income families to afford even modest apartments, an advocacy group said Tuesday.

"The picture is similar to past years, but it's getting worse," said Danilo Pelletiere, research director of the National Low Income Housing Coalition.

The coalition, which advocates for more affordable housing, issues a report each year tracking rental costs in every state, county and metropolitan area in the country.

It says families should spend no more than 30 percent of their incomes on housing and utilities, a standard recognized by many housing experts. Under that standard, the coalition said it could not find a single county in the United States where a full-time worker making minimum wage could afford a one-bedroom apartment.

In reality, the report found, many low-income families spend a far larger share of their incomes on housing.

Full article HERE

You would expect that SOMEWHERE in the US there has to be a place that you could find a one bedroom apartment for minimum wage...wouldn't you? They must be dealing with county-wide rental price averages or something, so I'm not sure how much I trust these numbers...however, the bulk of the population BUYS average price (thats why it's the average), so en masse the score looks pretty bad.

The article goes on to lay most of the blame for this on rising fuel prices...and talks about how bad it must be for Katrina victims who can't afford to live.

Future Shock

I live in NYC... and I am paying $650/month for a room.

 

[daniel49]

Originally posted by: homercles337

Originally posted by: Helenihi
What is this rule that only 30% of your income should go to housing? That's retarded.

I was taught 25% in my personal finance course in college. This number is not random, its actually rather well estabilished.

That number has indeed been upped to 30% as the accepted norm.
Many who are making that wage are teens and Young adults.
I have a son in school who pays about 285.00/month but he has 3 roommates who also pay that.
They however live in a nice rental overlooking the bay. very beautiful and the home is nice.

However many young couples may find the same that is one may have a job for 8.00/hour and the other a job at 10.00/hour.
together thier income is sufficient.

For one person making minimum wage, I would accept the report as true but realistically many people simply don't do that.

 

[Stifko]

Originally posted by: Future Shock
Rent controlled, right? My best friend is being offered $50k to move out of his studio a block from the Empire State, which he rents for $1700. There are lawyers who specialze in Manhattan rent control move-out negotiations, and usually just take a percentage. You may wish to find one - I think you can do better than $30k depending upon the neighborhood.

FS

Yes it is rent controlled. The leandlord is selling the building, so I don't know if he is still too eager to get me out. Besides I don't know where I would move. I could not afford to stay in the same area.

 

[homercles337]

Originally posted by: daniel49

Originally posted by: homercles337

Originally posted by: Helenihi
What is this rule that only 30% of your income should go to housing? That's retarded.

I was taught 25% in my personal finance course in college. This number is not random, its actually rather well estabilished.

That number has indeed been upped to 30% as the accepted norm.
Many who are making that wage are teens and Young adults.
I have a son in school who pays about 285.00/month but he has 3 roommates who also pay that.
They however live in a nice rental overlooking the bay. very beautiful and the home is nice.

However many young couples may find the same that is one may have a job for 8.00/hour and the other a job at 10.00/hour.
together thier income is sufficient.

For one person making minimum wage, I would accept the report as true but realistically many people simply don't do that.

Sounds pretty lucky (which bay? SF?). When i was in grad school at berkeley i was paying $750 for a bottom level studio. This was about 65% of my stipend. Next to NY and Boston the Bay Area is PRICEY.

@Purgatory-Z, i will see if i can dig up that text, but as Daniel already pointed out, it might be a bit dated. But the book is buried in a box so dont expect much since im moving shortly and dont have any reason to unpack.

Also, IIRC, this percentage was based on "take home" (net) pay.

 

[arsbanned]

Yeah, the idea that 18 bucks and hour will afford a couple a nice place on any bay other than shithole bay is ridiculous. Boston, you have to be pulling down minimum 30 an hour to afford a one bedroom.

 

[daniel49]

Originally posted by: homercles337

Originally posted by: daniel49

Originally posted by: homercles337

Originally posted by: Helenihi
What is this rule that only 30% of your income should go to housing? That's retarded.

I was taught 25% in my personal finance course in college. This number is not random, its actually rather well estabilished.

That number has indeed been upped to 30% as the accepted norm.
Many who are making that wage are teens and Young adults.
I have a son in school who pays about 285.00/month but he has 3 roommates who also pay that.
They however live in a nice rental overlooking the bay. very beautiful and the home is nice.

However many young couples may find the same that is one may have a job for 8.00/hour and the other a job at 10.00/hour.
together thier income is sufficient.

For one person making minimum wage, I would accept the report as true but realistically many people simply don't do that.

Sounds pretty lucky (which bay? SF?). When i was in grad school at berkeley i was paying $750 for a bottom level studio. This was about 65% of my stipend. Next to NY and Boston the Bay Area is PRICEY.

@Purgatory-Z, i will see if i can dig up that text, but as Daniel already pointed out, it might be a bit dated. But the book is buried in a box so dont expect much since im moving shortly and dont have any reason to unpack.

Also, IIRC, this percentage was based on "take home" (net) pay.

He lives In Bellingham wash. overlooking Bellingham Bay a city of about 70,000 people.

Any Major cities like San fran, LA, New York...etc are obviously going to have the prices inflated, which is one of many reasons I would never live in such a place.

 

[daniel49]

Originally posted by: arsbanned
Yeah, the idea that 18 bucks and hour will afford a couple a nice place on any bay other than shithole bay is ridiculous. Boston, you have to be pulling down minimum 30 an hour to afford a one bedroom.

I believe that is the name of the bay in Boston

 

[WhipperSnapper]

Originally posted by: daniel49

Originally posted by: arsbanned
Yeah, the idea that 18 bucks and hour will afford a couple a nice place on any bay other than shithole bay is ridiculous. Boston, you have to be pulling down minimum 30 an hour to afford a one bedroom.

I believe that is the name of the bay in Boston

Great big ROFL !!!

 

[irwincur]

OK, raise minimum wage.

I am willing to wager that rents will also go up.

It is all relative.

 

[imported_Tango]

Originally posted by: irwincur
OK, raise minimum wage.

I am willing to wager that rents will also go up.

It is all relative.

That would be called inflation and there are ways to avoid it.

 

[rudder]

Be thankful you do not live in a country like the philippines where a family of four might be lucky to share a 12X12 living space.

 

[Vic]

The "economic recovery" occurred '03-'05. That talking point disappeared after '02. And now with higher interest rates and stagnating asset values on the horizon, recession now looms for '06-'07.