homesmillbrae.com » Renter

Bay Area Rally Sends Rents Soaring

Thu, 01 Aug 2013 16:09:56 +0000

JIM CARLTON
CONNECT

SAN FRANCISCO—When Alexandra Goldman got notice of her rent increase—from $6,000 a month on a five-bedroom house she shared with roommates to $11,000—she says she was in disbelief.

“We knew immediately we were not going to be able to pay that much money to live there,” said Ms. Goldman, a 28-year-old planning consultant whose share of the rent was about $1,000 a month. After receiving the notice in October, she said the house’s occupants ended up dispersing to other rentals. She is living with other roommates now and paying about $300 more than she had before. Her former landlord didn’t immediately respond to requests for comment.

Welcome to what is arguably one of the worst cities in America to be a renter, but among the best to be a landlord and apartment investor. San Francisco led the top-50 U.S. metropolitan areas in average rent growth during the second quarter, jumping 7.8% to $2,498, while Oakland was No. 2 at a 6.9% increase, and San Jose was in fifth place at 5%. The 6.8% increase for the combined San Francisco Bay area was more than double the nation’s 3.1% increase, according to preliminary estimates by MPF Research, a market-research firm in Carrollton, Texas.

The Bay Area’s Building Boom

View Slideshow

Jason Henry for The Wall Street Journal

An advertisement for the new 22-story apartment complex at 1190 Mission Street, seen from Market Street in San Francisco

Housing Starts Fall by 9.9% in June

The rent increases have investors rushing to purchase existing properties. San Francisco-based Ridge Capital Investors, for example, has acquired nearly 500 units throughout the area since 2011, including a 45-unit apartment complex in San Mateo, a city south of San Francisco, for $10.95 million in November. Trevor Wilson, managing director of Ridge Capital, said his company has competed against as many as 30 bidders on multifamily properties in recent months.

“We’ve been trying to find more [properties], but there’s not a lot available,” said Mr. Wilson, who added his firm is spending about $1.5 million to refurbish units at the 34-year-old Mariner’s West Apartments in San Mateo so rents now well below market levels can be raised. Tenants there are now paying as much as $1,000 below the market rate of $2,300 to $2,400 a month for that area, Mr. Wilson said.

Fueling the rental increases in San Francisco and many other cities across the country are a resurgence in two key industries—technology and energy—and a generally improving economy nationwide, said Ryan Severino, senior economist at Reis Inc., a market-research firm in New York. Rents in energy-rich Denver jumped 6.1% from a year ago, according to MPF Research, while Seattle, another tech hub, saw rents increase 6%.

Mr. Severino said rents are rising the fastest in cities with the tightest supply of housing, like the Bay Area and Seattle. San Francisco’s vacancy rate for multifamily housing in the second quarter stood at 3%, the same as a year earlier, compared with a national average of 4.7%, according to MPF.

Some cities with less-robust job markets enjoyed a strengthened market but remained at higher vacancy rates amid deeper housing inventories. Philadelphia’s vacancy rate dropped to 5.4% in the second quarter, from 6.1% a year earlier and compared with a national average of 4.7%. The rate in Las Vegas fell to 7.5% from 8.4%, and in Memphis, Tenn., to 8.9% from 10.1%, according to MPF Research.

For the nation’s tightest apartment markets, some observers worry the local labor pool may eventually go down, because of people being driven away. In Ms. Goldman’s case, she said she and her roommates mostly had the means to remain in San Francisco but said that may not be the case for everyone. “It’s getting a little out of control,” she said.

Regarded by industry analysts as chronically underhoused, San Francisco added 31,000 jobs in 2012 in a city of about 800,000. That is resulting in sticker shock for new arrivals. Leena Rao, with her husband, Suneel Gupta, recently leased a two-bedroom, two-bath home for between $4,000 and $5,000 a month, compared with $2,150 for the two-bedroom they left behind in Chicago.

“It was a brutal surprise,” said Ms. Rao, 31, an editor for a technology news website.

The tight supplies have unleashed a torrent of new construction in the Bay Area, with 14,377 units permitted for construction over the next 18 months, or almost as much as for Houston, typically a much more active building market, according to MPF Research. In San Francisco, the 22-story 1190 Mission at Trinity Place building preleased half its 419 units before opening July 1, with all the tenants signing agreements without the customary practice of having toured a model or attended an apartment tour, said Rob Willis, director of operations for Trinity Management Services, the builder. “We have never seen this,” Mr. Willis said.

Some homeowners are seeking to cash in on the demand. Jane Shepard said she and her husband, Avrum, plan to rent their four-bedroom, two-bath home in San Francisco to help raise money for needed repairs. “Financially, it’s a great time to be a landlord,” said Ms. Shepard, 67, a commercial-property manager. She said the couple would move to their second home in Visalia, Calif.

But renters with less means are finding fewer options. Dawn Griffin, 55, said she was served with an eviction notice in January on her $725-a-month apartment near the city’s Golden Gate Park. Landlord Elba Borgen, who didn’t return calls for comment, also served eviction notices on the other seven tenants in the building, said Ted Gullicksen, executive director of the San Francisco Tenants Union, which has offered advice and other help to Ms. Griffin and other tenants in her building.

“I can’t afford to move,” said Ms. Griffin, a 30-year resident of the apartment and a medical-office administrator.

Still, some tenants have turned the situation into opportunity. Sam Parr said he ended up starting a business matching roommates with apartments after moving to San Francisco from Nashville, Tenn., last year and seeing prices so high he needed to share rent with someone, too. “I thought, oh my God, this is awful—something has to be done,” said Mr. Parr, 24, who sold the business to a larger startup and now shares a $3,500-a-month house with three roommates.

Write to Jim Carlton at jim.carlton@wsj.com

A version of this article appeared July 16, 2013, on page C1 in the U.S. edition of The Wall Street Journal, with the headline: Bay Area Rally Sends Rents Soaring.

Article source: http://online.wsj.com/article/SB10001424127887324694904578602013087282582.html

Apartments reap rewards of rising rates

Sun, 14 Jul 2013 15:03:30 +0000

“I am scared, in part due to the fact that my father and mother had a lot of problems with their mortgage and due to the job market,” said Charles Desanpedro Jr., a renter in Northern New Jersey.

(Read More: Map: Tracking the US Real Estate Recovery)

Fear and financing have kept the apartment rental market strong for the past several years, with rising rents and falling vacancies. Rents rose yet again in the second quarter of this year, according to a new report from Reis, up more than 2 percent from a year ago. But rents and vacancies have been stabilizing of late, as buyers return to the market.

Mark Sadaka and his wife are looking to buy a home in New Jersey.

“It’s hard to get a mortgage, but now things have apparently lightened up. I don’t know, we’re exploring that now,” said Mark.

Mortgage credit is easing up slightly, according to a new index from the Mortgage Bankers Association. The increase was driven by a small uptick in the number of jumbo, investor and cash-out products as well as those with higher loan-to-value ratios. All those are riskier loans.

But while credit is easing slightly, mortgage rates are rising. The 30-year fixed hit 4.41 percent on the Zillow Mortgage Marketplace, up 24 basis points from a week ago.That’s the highest in two years. Rates could move higher after Wednesday’s release of the Federal Open Market Committee meeting minutes and more clues to the easing of federal stimulus in the mortgage market.

(Read More: Rising Rates Sour Housing Market Plans)

Rising rates have already taken away considerable purchasing power for potential buyers. Fewer consumers now think it’s a good time to buy compared with just a month ago, according to a survey from Fannie Mae.

Article source: http://www.cnbc.com/id/100874193

San Francisco stats like you’ve never seen them

Wed, 19 Jun 2013 01:45:30 +0000

Share this gallery: 1 of 13

San Francisco gets called diverse, liberal, wealthy, and over-educated– often. And apparently, such adjectives are verifiable, thanks to these handy graphs developed by Paragon Real Estate (view the original post with more slides at The Frontsteps blog). Note that the data crunched here is predominately that of the 2010 census, so some figures will be less than current, and perhaps not completely accurate as they are subject to that which is (and is not) reported to the census.

Still, overall, kind of cool stuff. And to most residents, these slides seem to tell of a version of San Francisco that’s pretty close to the real story.

Anna Marie Erwert writes from both the renter and new buyer perspective, having (finally) achieved both statuses. She focuses on national real estate trends, specializing in the San Francisco Bay Area and Pacific Northwest, and writes for SFGate and CurbedSF. Follow Anna on Twitter: @AnnaMarieErwert

Article source: http://blog.sfgate.com/ontheblock/2013/06/18/san-francisco-stats-like-youve-never-seen-them/

Looking back at San Francisco’s amazing real estate year

Thu, 27 Dec 2012 12:38:12 +0000

SF has never been a city making news for selling cheap homes, but this year, we surprised even ourselves by selling expensive ones. Here are a smattering of expensive home sales in San Francisco this year, from 1st to 5th most pricey. (For a complete list, visit CurbedSF.)

1. Sperling sells to Sacks and 2845 Broadway finally sells: $20 million

Note: Trulia’s original reports of $34.5 million were incorrect. Per tax records, this home sold for $20 million.

2. The Zynga/One King’s Lane Pincus home: $16 million

3, 4 and 5.

Banner Year for Bay Area median home prices

San Francisco also made news for median sold price gains- and this not just in the city proper. The whole Bay Area had a banner year, including the formerly battered East Bay where home values slumped after real estate’s big crash. ZipRealty posted these figures, showing year-over-year growth from 11/2011 to 11/2012, of single-family homes. Unless we have a major surplus of inventory in the next few months, it doesn’t seem likely these numbers will head south with the New Year.

Going up!

But readers always have their own opinions, so let’s have them now: What does your crystal ball (or other, more reliable source)tell you to expect from Bay Area home prices in 2013?

Anna Marie Erwert writes from both the renter and new buyer perspective, having (finally) achieved both statuses. She focuses on national real estate trends, specializing in the San Francisco Bay Area and Pacific Northwest. Follow Anna on Twitter: @AnnaMarieErwert

Article source: http://blog.sfgate.com/ontheblock/2012/12/27/looking-back-at-san-franciscos-amazing-real-estate-year/

21-Story 475 Sansome St. Changes Hands

Thu, 13 Dec 2012 05:17:32 +0000

JLL Management Changes Occur Amid Shifting CRE Tides

CHICAGO-Lauralee Martin’s move to CEO, Americas (vacated by Peter Roberts, who takes the newly created job of Chief Strategy Officer) is being made amid trends including Latin America’s growth and CRE outsourcing.

Article source: http://www.globest.com/news/12_499/sanfrancisco/office/21-Story-475-Sansome-St-Changes-Hands-327572.html

America’s Emptiest Cities

Fri, 05 Oct 2012 00:27:10 +0000

Cities suffering from mass emigration? Here are 5 of today’s most vacant.

We all know the nation’s real estate has been hard hit by the economy’s malaise. Between record high foreclosures and plummeting home values, the nation’s housing market may never fully recover—at least not if the target is pre-bubble prices.

But in the Bay Area, real estate remains strong. In San Francisco and the Silicon Valley in particular, prices have gotten higher along with higher demand. Even Oakland, formerly decimated by foreclosures and short sales, has enjoyed something of a comeback, scoring Realtor.com’s title of “fastest selling city in America” this August.

The rest of the county hasn’t been so lucky. As CNBC puts it, “one of the unfortunate results of a bad housing market are empty homes. Vacant properties have increased by 43.8%.” And where do thee vacancies hit hardest? CNBC released its list of the 10 emptiest cities in the USA. We covered 5 here. To see the complete list, visit CNBC here.

Could It Happen to the Bay Area?

People in Toledo or Houston probably ever planned for their cities to be so vacant. Consider Detroit, once the flourishing center of America’s automobile industry, now a shell of its former glory. What would it take, readers, to empty out one of our Bay Area cities?

Article source: http://blog.sfgate.com/ontheblock/2012/10/04/americas-emptiest-cities/

Renter Nation Rages On

Sat, 28 Jul 2012 11:25:13 +0000

The supply of empty homes for rent is falling, and the nation’s homeownership rate is hovering near a fifteen year low.

How can that be when the housing market is finally turning around and more homes are selling?

The answer is simple: Investors.

The nation’s home ownership rate ticked up a statistically insignificant basis point, from 65.5 percent in the first quarter of this year to 65.6 percent in the second quarter, according to the U.S. Census Bureau. Q1 was the lowest home ownership rate since 1997 and is down from the peak of 69.4 percent in 2004.

Given that home sales improved significantly during the first half of this year, you would think that home ownership rate should have surged higher, but the rate is calculated using only owner-occupied homes. If an investor buys one home or 100 homes, those homes are not even put into the calculation because they owner doesn’t live in the homes. Realtors estimate around 20 percent of homes sales are currently to investors, but given bulk deals offered by the government and banks on foreclosed properties, that percentage is likely higher.

“The very modest increase in the homeownership rate in Q2 does not persuade us to alter our view that the share of the population who own their home will fall further over the next couple of years,” writes Paul Diggle of Capital Economics. “Meanwhile, supply conditions in the rental market are tightening, with a falling proportion of single and multi-family rental homes vacant.”

Rental vacancies in fact fell to their lowest rate since 2001. That is why so many investors are rushing in to buy distressed properties. The rental market his hot and getting hotter. Average asking rent rose 5 percent from a year ago, though they are down slightly from the previous quarter.

Since the peak of home ownership in 2004, six and a half million additional U.S. households are renting, which Diggle calculates is equivalent to 90 percent of the increase in total household numbers over that time. He estimates home ownership will fall to 64 percent over the next two years.

An investor-driven recovery in home sales is certainly positive and is helping to clear the huge backlog of distressed properties on the low end; investors are necessary now, but until real owner-occupants, including the all-important first-time home buyer, return, a robust recovery in all price tiers of the market will remain out of reach.

Questions? Comments? And follow me on Twitter @Diana_Olick

Article source: http://www.cnbc.com/id/48354027?__source=RSS*blog*&par=RSS

Despite High Affordability, Renter Nation Reigns

Tue, 01 May 2012 07:36:47 +0000

Article source: http://www.cnbc.com/id/47234659?__source=RSS*blog*&par=RSS

Bay Area Property Management Company, Stokley Properties Inc., Offers Renters …

Sat, 04 Feb 2012 18:54:46 +0000

The Bay Area’s Stokley Properties Inc. advises the public on what a strong rental market in the San Francisco East Bay Area means to home owners and renters, especially those who may have lost their homes due to foreclosure.

Walnut Creek, CA (PRWEB) February 02, 2012

As the San Francisco East Bay Area real estate market continues to lean toward a strong rental market, Bay Area property management company,Stokley Properties Inc. would like to offer new and foreclosed-upon renters tips on securing a lease.

For a first-time renter or for someone re-entering the rental world after being far removed from it for years, Concord property management company, Stokley Properties recommends considering the following:

1)    Preparation is key. Have every necessary document ready.

2)    Those that have lost their homes due to a foreclosure or a short sale should have a letter of explanation ready. This should not be left to chance. Property management companies, such as Stokley Properties Inc., can work with people who have lost their homes, but they need to be prepared with documentation so that upon review of their application, their situation can easily be understood.

3)    Do not to prevaricate. If the property is priced correctly and is a clean and well-maintained home – in a desirable neighborhood – it will not stay on the market long. Therefore, renters are encouraged to bring their checkbooks, and if they like the property, to snap it up immediately!

The continuing havoc that the real estate industry has been cycling through is the main reason rental properties have been making a strong showing this year and beyond. Because of short sales and foreclosures, people who were once homeowners are now renters. For those who finds themselves in this situation, it is important to be aware of the market and what the competition is, as well as what they need to be prepared.

“I have been very happy with Joe Stokley and his team. All the clients I referred to him have expressed great happiness with the service he provided when they needed to rent a property. His property management service is very well received. I look forward to referring many more clients to him. We have known each other for many years and enjoy a close working relationship,” said Don and Norma Flaskerud, Realtors(R) of RE/MAX CC Connection.

For more information about any of Stokley Properties’ services, call 925-658-1415 or view the property management company on the web at www.stokleypropertieseastbay.net. Stokley Properties is located at 1630 N. Main St., Suite 54, in Walnut Creek.

About Stokley Properties Inc.

The Walnut Creek company, Stokley Properties, provides complete property management services throughout the greater San Francisco East Bay Area, including Concord, San Ramon, the Bay Area, Brentwood, Martinez and Oakland. It provides professional real estate investment advice to enable clients to make well-informed decisions. Services include advertising and marketing, residential screening, leasing and retention management, property inspections and more.

# # #

For the original version on PRWeb visit: www.prweb.com/releases/prwebproperty-management/bay-area/prweb9160781.htm

Article source: http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2012/02/02/prweb9160781.DTL

Bay Area leads nation in rental price increases

Sun, 22 Jan 2012 05:54:29 +0000

Bay Area cities topped the nation for rising apartment rental prices in 2011, according to a new report.

In the greater San Francisco and San Jose markets, average rental prices increased by 10.4 and 12.2 percent, respectively, making the two areas the markets with the greatest rent appreciation in the country, according to a report by RealFacts, a company that analyzes rental data. The S.F. region includes parts of the East Bay, and San Jose includes other parts of Santa Clara County.

Click on the photo at right to see how rents have increased in the Bay Area.

Over the past four years, according to the survey, rental prices have climbed 13.7 percent in San Francisco, while occupancy rose only 1.3 percent. The City’s high apartment occupancy rate is one of the factors contributing to its rising prices, real estate experts agree.

“We’ve reached a point where there’s nothing out there,” said Craig Berendt, a broker with Berendt Properties. “People are knocking down my door to get an apartment.”

Renters now have to compete for apartments, sometimes creating a bidding war. Vacancies are filled quickly, and for above-average prices. Berendt recently rented a client an 800-square-foot Hayes Valley apartment with an outdated 1950s kitchen and without parking for $2,100 a month. About a year ago he would have been lucky to get $1,700, he said.

The tech industry, which is credited with contributing to the boom in both residential and commercial real estate, has created a renter profile of young, well-paid professionals who can afford the cream of the crop.

“Current renters moving in are pickier about what they want,” said Janan New, executive director of San Francisco Apartment Association. “They are willing to pay high rents, but don’t want to compromise on amenities.”

She said that means landlords have to deliver — by installing granite countertops, track lighting and other new features that also can drive up asking rates. The trend has made San Francisco a city that is increasingly unaffordable to middle-class residents, both New and Berendt said.

“I see our middle class really starting to dissipate,” Berendt said. “Obviously we don’t want that. We want a well-balanced class system, but the rents are just going through the roof.”

RealFacts’ report analyzes detailed data for 47 market survey areas in the country, including Los Angeles, Dallas, Denver and Tampa. Although the report omitted detailed information on major metropolises such as New York City and Washington, D.C., RealFacts spokeswoman Linda Burke said the company’s data on those cities supports its findings about San Francisco and San Jose.

sgantz@sfexaminer.com

Article source: http://www.sfexaminer.com/local/2012/01/bay-area-leads-nation-rental-price-increases

homesmillbrae.com » Renter

Bay Area Rally Sends Rents Soaring

The Bay Area’s Building Boom

Related Articles

Apartments reap rewards of rising rates

San Francisco stats like you’ve never seen them

Looking back at San Francisco’s amazing real estate year

21-Story 475 Sansome St. Changes Hands

America’s Emptiest Cities

Renter Nation Rages On

Despite High Affordability, Renter Nation Reigns

Bay Area Property Management Company, Stokley Properties Inc., Offers Renters …

Bay Area leads nation in rental price increases