Curious Who Can Afford Inner Loop Rent? (Houston, Howe: real estate, apartments)

[redant34]

All the new apartments are approximately $1500 and up for a one bedroom. I imagine young people in their 20's and 30's are living in these places.

I know college educated people who are not making enough to afford this type of apartment. I am wondering what jobs people have to afford rent in Houston?

Any help is appreciated!

[cheryjohns]

Engineers, etc.

Supply/demand. They wouldn't be charging this much if they weren't renting them. Space is limited within the loop.

[jerbear30]

I've read that this price jump is in part attributable to companies paying rent for their employees at whatever the going rate is. They get a contract worker into town for a year or more and they just rent a place for them. If the rate is 3k per month, so be it. This is just something I've read and I don't know where. It may have been here, or on swamplot.com.

Anecdotally, I can tell you that I'm as surprised as you are. My wife and I are, according to the WSJ income calculator, in the 83rd percentile of earners in the US. I can't really afford 2k per month, much less the 3k a really decent place would cost. I don't get it. It's either unsustainable or Houston is just flush with really high wage earners.

[stop-go]

I moved here in 2002 and rented inside the loop until 2012, I think my lowest rent was $1200, right by the galleria. I'm a CPA. My husband always rented as well and he's an engineer. I think Houston has a large share of high wage earners due to our oil & gas and medical industries.

[Rip808]

A lot of them get a roomate and live in a 2 bed/2 bath and split rent. Others make enough to pay it, others are just 50-60k millionaires... in my opinion throwing away so much money in rent is beyond asinine. I would rather put it into something that is appreciating.

[jerbear30]

Originally Posted by Rip808

A lot of them get a roomate and live in a 2 bed/2 bath and split rent. Others make enough to pay it, others are just 50-60k millionaires... in my opinion throwing away so much money in rent is beyond asinine. I would rather put it into something that is appreciating.

I tend to agree with you when I start thinking about what the monthly payments add up to. 2k per month over four years and you're looking at half a nice house already paid. However, then I realize that house payments also include interest--a 200k house is several hundreds of thousands more than that in interest, taxes, etc... Home ownership is still a bit more cost effective, but when you factor in the freedom of being a renter, I guess that's the appeal for a lot of people (myself included). It's a tough call.

[PedroMartinez]

Originally Posted by jerbear30

I tend to agree with you when I start thinking about what the monthly payments add up to. 2k per month over four years and you're looking at half a nice house already paid. However, then I realize that house payments also include interest--a 200k house is several hundreds of thousands more than that in interest, taxes, etc... Home ownership is still a bit more cost effective, but when you factor in the freedom of being a renter, I guess that's the appeal for a lot of people (myself included). It's a tough call.

Additionally, when you rent, you are not responsible for replacing an air-conditioner or a roof.

[Oildog]

I've told some youngins, to live in a cheaper place for 5 years so you can save a down payment for a townhome. Cab to the party spots, don't be the one who pays so all your friends can party at the pool at your complex. You won't get a 3 br/ba right away, but you'll get something. The amount you'll pay on the mortgage will be less than what you pay for rent.

Maybe that's just a cranky old guy talking. From the times when getting married meant living in a small apartment, saving up for a starter home (1200 sqft), living there for 5+ years until you saved enough for the burbs. As opposed to current folks who get a 300k 2500 sqft house right out of college.

[PedroMartinez]

Originally Posted by Oildog

I've told some youngins, to live in a cheaper place for 5 years so you can save a down payment for a townhome. Cab to the party spots, don't be the one who pays so all your friends can party at the pool at your complex. You won't get a 3 br/ba right away, but you'll get something. The amount you'll pay on the mortgage will be less than what you pay for rent.

Maybe that's just a cranky old guy talking. From the times when getting married meant living in a small apartment, saving up for a starter home (1200 sqft), living there for 5+ years until you saved enough for the burbs. As opposed to current folks who get a 300k 2500 sqft house right out of college.

With a BMW in the garage.

[eastontracks]

every time this topic is posted i check my old apt which i left a year ago when they wanted $1040/mo from previously $928 in 2012. I thought at the time it was outrageous and now it's at $1281/mo lol.

imo, a combination of what many have said: the medical, oil, and engineering field plus those that make a decent wage of 50-60k but think theyre making millions and spend over their head with rent, and a luxury car, etc.

even with the good economy houston has, i think its a bubble that will go down some. i just cant possibly seeing it rising much more as there's not that much money floating around to be spent on rent or real estate for that matter. all my opinion but i think some are spending over their head.