recommendations of cities for biotech and IT (San Diego, Long Beach: apartment, to rent)

[ecreinfr]

Hi- my husband and I are wanting to move out of the midwest in the next 12-18 months. One of the places we are considering is the LA/OC/San Diego area. I want some input from people familiar with the area. We are also taking a trip there in a few weeks to see if we like the area.

We are both professionals with master degrees, I am in biotech, he is in IT systems admin (meaning he can work in most industries) and in our late 20s, early 30s. We have no kids, and would estimate we would be making 120-140K/yr. I'm ok renting for a while, though we do have some equity currently to (eventually) put back into a house. We will not be moving until at least one of us has a job lined up.

So, what areas are particularly good places to see when we visit in a few weeks? I guess I'd like to see areas where there are lots of biotech jobs, and places that are still a little fun for young couples. I heard Huntington Beach was decent, and Irvine has good employment? I would want to live by my work.

Like I said, this is just one of the areas we are considering, though all of them have warm climates. I can't take many more winters!

thanks for the input!

[Arik B]

Hey, I just read your post and im also loosing my head with the winters, im here in Toronto Canada and I hate the long winters.

Im also trying to get down to Cali...

[angelab]

I work in biotech in Irvine-adjacent Laguna Hills. My BF works in biotech in Bellflower. He lives in Long Beach and I live in Fullerton. Get out a map, those cities aren't really far away, but because of traffic, we only see each other on weekends and I spend a good chunk of my day commuting (2 hours to 6 hours total, depending on the day, season, and time).

We don't live together to that impacts a lot, but we have a combined salary of about 160k and we cannot afford to buy anything in a decent neighborhood that is convenient to both our jobs. I'm not even factoring in our desire for more than 2 feet separating our house from the neighbors' and a yard big enough for the dog. On your salary it's definitely feasible to rent something near your job, but buying something is another story altogether.

I have known people who have moved here in recent years and bought a house. In some cases they even made less than us, but they had some equity in their previous home or a substantial savings/401k/whatever, something that we do not. I would definitely advise you to save, save, save before you move here so you can put as much money down as possible.

As for "fun" areas (I'm in my late 20s as well), you'll find that a lot of neighborhoods have a lot of little niche fun areas. I chose my apartment because it's a short distance from downtown Fullerton, which is more than enough nightlife for me. Coastal cities can be a little on the young side when it comes nightlife, but there are definitely exceptions, you just have to explore a bit.

[Humanoid]

I would definitely advise you to save, save, save before you move here so you can put as much money down as possible.

Or just wait util the market hits bottom and buy homes with 30-50% haircuts.

[zootytown]

Or just wait util the market hits bottom and buy homes with 30-50% haircuts.

Do you guys really think a 30-50% drop is realistic? I mean I just can't imagine this huge population of people having mortgages for $500,000 with a house worth $275,000. That seems like a spectacular crash that would cause an entire region's economy to come to a screeching halt.

I'm not located in CA, but so you guys would know best...is it really that out of control?

[Humanoid]

Do you guys really think a 30-50% drop is realistic? I mean I just can't imagine this huge population of people having mortgages for $500,000 with a house worth $275,000. That seems like a spectacular crash that would cause an entire region's economy to come to a screeching halt.

Its very realistic and there isn't much that can keep the prices up at this point. Also, 30~50% haircuts will bring prices back to their 2000~2001 level so its only the people that purchased homes after 2001 or so that will get hit (of course some pre-2001 folks are in trouble too since they took out home equity loans to purchase a bunch of junk).

is it really that out of control?

Yes. In roughly 5 years the price of a home doubled. No fundamental justified the increase in price. Families making 100k+ a year now can't even purchase a basic single family home. The only reason folks were able to purchase them in the past is exotic loans (Alt-a, ARM, IO etc), but the lenders have largely cut these loans off as they are losing massive money on them (Many lenders have gone out of business in Orange County). Anyhow, all these idiotic loans will reset over the next 5 years forcing homes on the market at reduced prices (they usually reset in 3-5 years, so we are just starting to see the loans from 2004 reset).

[zootytown]

That would be amazing, however, history tells us that kind of massive shift is rare. I wonder if things will just stay stagnant for the next 10 years.

[Humanoid]

That would be amazing, however, history tells us that kind of massive shift is rare.

Bubbles like this aren't that rare, there was even a little one in the US during the 1990's the appreciation between 1992-96 was negative. Also if the prices stagnant for the next 10 years that means a price drop of about 25% (assuming inflation is on average 2.5%)

[Jonah1979]

Actuallythis housing bubble is VERY unique. It's the first time we've had "alternative" loans mixed in and with this who knows now bad it will get. Interest rates rising, loan ARMs resetting, lenders cutting back...I see another roughly 10% decline over the next 2 years and then very stagnate prices for years to come...

[fg2]

Think about Bay Area as well. Great for biotech/IT. Housing is roughly similarly priced to OC though (meaning either very expensive or a long commute).