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Actually, some of those shipping containers can make some very nice homes at a fraction of what a stick built house would cost you. The problem would be zoning.
What I'm wondering is how expensive houses and renting can get before no one making even $10 or more over minimum wage will be able to afford to live there. The high tech jobs will be there, the high salaries in tech will be there, the people will be there and the houses will be there, but what happens when there are no more service people?
Sure, there's a boom economy and people with lots of money living in San Jose, but what happens when you can't find people to work in grocery stores or fast food places, or teachers or garbage collectors or tellers? The next time you're in San Francisco or San Jose and you're waiting in a long line where there's only one or two people helping everyone, maybe there's a reason for that. Where's the breaking point for people when they want to eat out and there's a line around the block because there's only one waiter serving people, or when their library is only open one day a week because librarians can't afford to live within 50 miles of where they work anymore? How long will people put up with that and what can - or will - they do to keep that from happening?
Maybe it would make more economic sense for Bay Area professionals to move to places like LA and OC. Housing is expensive down here, but it's nothing like what you are describing.
The problem is that the tech salaries in SoCal are often much lower compared to the Bay Area, so it kinda balances out to some degree.
Maybe it would make more economic sense for Bay Area professionals to move to places like LA and OC. Housing is expensive down here, but it's nothing like what you are describing.
There are no tech jobs, I don't consider IT jobs tech jobs, there are more headquarters in the Bay Area, therefore there are more opportunities. I've worked at all places before moving to Bay Area.
There are no tech jobs, I don't consider IT jobs tech jobs, there are more headquarters in the Bay Area, therefore there are more opportunities. I've worked at all places before moving to Bay Area.
It's definitely not my field, and forgive my possible lack of knowledge, but I always assumed that IT was a "tech" field. We all know that the Bay Area is by far the lead player in this, but doesn't Irvine have plenty of tech jobs?
One of the major themes in Mayor Steven Choi’s 2014 State of the City address was his desire to turn Irvine into a new “center of technology.” Choi’s dream of Irvine as a “Tech Valley” isn’t a dream. The mayor is clearly trying to take credit for a technology economy that already exists in Irvine.
The problem is that the tech salaries in SoCal are often much lower compared to the Bay Area, so it kinda balances out to some degree.
I know that tech salaries are far lower in LA and OC, but I imagine that even average-salaried tech workers have at least a shot at buying a home in this general area. I could be wrong.
In part, aren't Bay Area salaries so high because of sky-high housing costs; and don't the two feed into one another in an ever escalating manner?
BTW, I really wonder if things would just balance out? I never hear of anyone in OC living in a shipping container.
You do read about poor immigrant families doubled-up, or living in garages in Santa Ana, but that's it. LA/OC professionals just don't have that problem.
I know that tech salaries are far lower in LA and OC, but I imagine that even average-salaried tech workers have at least a shot at buying a home in this general area. I could be wrong.
In part, aren't Bay Area salaries so high because of sky-high housing costs; and don't the two feed into one another in an ever escalating manner?
BTW, I really wonder if things would just balance out? I never hear of anyone in OC living in a shipping container.
You do read about poor immigrant families doubled-up, or living in garages in Santa Ana, but that's it. LA/OC professionals just don't have that problem.
Even in South OC, there are reports (admittedly anectodal) of overcrowding and families doubling up to cope with the rent burden/cost of living.
"Chris-in-OC
January 17, 2016 at 11:30 am
It’s not just Los Angeles, it is happening in unexpected area such as South Orange County. I live in Laguna Niguel and there is open class warfare between SFH “Owners” vs Apartment dwellers in my area and it is over street parking.
I live in a moderately priced apartment complex (Hidden Hills Condominium Rentals). There are very few affordable options in this area… but plenty of low pay jobs at the Resorts (Ritz-Carlton, St Regis and Montage are all nearby) as well as low-pay retail jobs are the nearby Malls. In the last 5 years, I’ve seen my complex go from singles and small families to doubled up families with 8-10+ people living in 1,000 sqf 2 bedroom apartments. The management has done their best to handle it… they have evicted tenants breaking the lease through overcrowding (one apartment had 16 people living in it!).
Back to the original point… all these people have cars but no permit to park in the complex, thus spilling out onto the surrounding streets. The adjacent homeowners had made headway on requiring a permit for street parking. Didn’t we all move down here to escape LA? And we brought it with us!
REPLY
soners22
January 17, 2016 at 4:15 pm
Amazing, we are practically neighbors. I live in the apartments between Hidden Hills and Marina Hills and have experienced the same thing. A few months back I received a notice that the homeowners living on Springwood near the park were petitioning for permitted parking. Speaking with the Civil Engineer in charge of the request, it was clear that they understand that population density is rising as more people are living in each household and therefore more cars on the streets. I agree that this is class warfare and voiced my opinion that if homeowners want to privatize parking, they can pay for it with a gated community to keep us out."
"Chris-in-OC
January 17, 2016 at 11:30 am
It’s not just Los Angeles, it is happening in unexpected area such as South Orange County. I live in Laguna Niguel and there is open class warfare between SFH “Owners” vs Apartment dwellers in my area and it is over street parking.
I live in a moderately priced apartment complex (Hidden Hills Condominium Rentals). There are very few affordable options in this area… but plenty of low pay jobs at the Resorts (Ritz-Carlton, St Regis and Montage are all nearby) as well as low-pay retail jobs are the nearby Malls. In the last 5 years, I’ve seen my complex go from singles and small families to doubled up families with 8-10+ people living in 1,000 sqf 2 bedroom apartments. The management has done their best to handle it… they have evicted tenants breaking the lease through overcrowding (one apartment had 16 people living in it!).
Back to the original point… all these people have cars but no permit to park in the complex, thus spilling out onto the surrounding streets. The adjacent homeowners had made headway on requiring a permit for street parking. Didn’t we all move down here to escape LA? And we brought it with us!
REPLY
soners22
January 17, 2016 at 4:15 pm
Amazing, we are practically neighbors. I live in the apartments between Hidden Hills and Marina Hills and have experienced the same thing. A few months back I received a notice that the homeowners living on Springwood near the park were petitioning for permitted parking. Speaking with the Civil Engineer in charge of the request, it was clear that they understand that population density is rising as more people are living in each household and therefore more cars on the streets. I agree that this is class warfare and voiced my opinion that if homeowners want to privatize parking, they can pay for it with a gated community to keep us out."
How many of the families who live doubled up in South OC are professionals? I'm willing to bet that none of them fall into that category.
As "Chris" noted, there are plenty of low wage-earners who work at the hotels, etc. They also work retail jobs, at car washes, and whatever.They can't afford OC rents. So, they crowd together into apartments. They aren't tech workers.
Laguna Niguel and other South OC home owners tend to be professionals, business owners and retirees.
That doesn't mean, of course, that there are no young South OC professionals sharing apartments in order to save money. You won't find them living in garages, tens and shipping containers.
The average OC rent in July, 2015 was $1848. That's easily handled by most professionals, but not by low-income workers.
It's definitely not my field, and forgive my possible lack of knowledge, but I always assumed that IT was a "tech" field. We all know that the Bay Area is by far the lead player in this, but doesn't Irvine have plenty of tech jobs?
One of the major themes in Mayor Steven Choi’s 2014 State of the City address was his desire to turn Irvine into a new “center of technology.” Choi’s dream of Irvine as a “Tech Valley” isn’t a dream. The mayor is clearly trying to take credit for a technology economy that already exists in Irvine.
Not in my book, IT is IT, you don't even need a degree for IT, but tech jobs are like working for companies like Occulus Rift, Broadcom, which has been sold, Western Digital, all have headquarters in Irvine.
Of course Mayer will say otherwise. Two biggest employers for Irvine are UCI and Irvine company. My kid's friend is studying at a community college in psychology and he is doing IT for Irvine Pacific. You dont need a tech degree.
So I see people are paying almost a million dollars now for very modest (but detached) homes in places like LA and SF. Is this really sustainable? We have had a big influx of foreign wealth...which...who knows if it will continue or not? Even if we ignore the most extreme cases like Baltimore and Detroit, "momentum" in RE prices is far from consistent especially over periods of more than a few years.
It really strikes me as weird that people are so eager to stretch into the crazy overpriced market there as if there is zero chance (or nearly so) of a real correction happening. What am I missing?
Real estate in cities like San Francisco, LA and NYC have skyrocketed. Why? A lot of people want to live there. The world has changed in the past couple of years. These three cities, as well as others in the US, are no longer just US cities, they are World Cities. They are comparable to London, Paris or Rome. The single family concept of a resident is being eliminated in favor of high-rise condo's. There are too many people from other countries that are really rich. They have lots and lots of money. That property you wanted in SF has the attention of people from around the globe, who want it, too. Then throw in the developers that want to buy everything and tear it down and build high-rise condo's.
To answer you question, I do not see prices ever going down in any of these cities. There is too much money behind them. If you can swing it, get something sooner than later, or it could be Bakersfield, Fresno or Sacramento that fall into your budget. Good luck!
Real estate in cities like San Francisco, LA and NYC have skyrocketed. Why? A lot of people want to live there. The world has changed in the past couple of years. These three cities, as well as others in the US, are no longer just US cities, they are World Cities. They are comparable to London, Paris or Rome. The single family concept of a resident is being eliminated in favor of high-rise condo's. There are too many people from other countries that are really rich. They have lots and lots of money. That property you wanted in SF has the attention of people from around the globe, who want it, too. Then throw in the developers that want to buy everything and tear it down and build high-rise condo's.
To answer you question, I do not see prices ever going down in any of these cities. There is too much money behind them. If you can swing it, get something sooner than later, or it could be Bakersfield, Fresno or Sacramento that fall into your budget. Good luck!
I LOL-ed
SF is a **** and poop ridden dump. Yes I've been there and would never buy or rent a home there.
LA might as well be Sacramento with quick access to a beach.
NYC outside of pizza is over-rated. The only thing you do here is exist to pay rent.
It's only going to take one large earthquake to straighten out the real estate market in SF.
We're living in real estate bubble 3.0 and the denial is much stronger this time around. That's why I said this time it will be soul crushing when when it does pop.
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The game has changed
