New SF Apartments in mid-Market, 1 bedroom for $4300+ (Oakland: lawyer, employment)

[bmw335xi]

Originally Posted by 04kL4nD

Because they are probably the only ones who could reasonably afford a $4300 a month apartment?

And most tech guys do not make $250k or even close to that amount.

These kinds of projects are good for rent prices in my opinion. If they didn't build these high end units, then you potentially would be competing with them in your own building. More housing whether it is cheap units or high end units helpstabilize rent prices. It won't fix the problem because there are more factors involved, one being lack of space, but it still helps.

You have more people wanting to move to San Francisco than supply allows (essentially). Rejecting developments will increase the rate of rent hikes. Approving developments will decrease the rate of rent hikes. If this development wasn't approved, there would be that many more executives etc with better credit and income than the average joe competing for housing.

If you think companies like Google, Facebook, Zynga, Wells Fargo etc are the enemy, well then without them we would probably be like Detroit. Sure rent would be cheap, but out city would suck and would most likely be forced to file for bankruptcy considering our massive spending habits. These companies provide good wages, yet people complain their employees are the reason why rents are so high. These same people then condemn companies like Walmart because they don't pay their employees enough. Well, what do you want! LOL (I'm not speaking to you directly)

[peninsular]

Originally Posted by felinius

Is the top 1.25% considered middle class now? I guess I don't understand those who make a nice amount of $$$ desiring to classify themselves as middle class if they are, in reality, upper class.

Just so we are clear on the numbers. A household income of 250K/year puts one in top 3 percent of the households in the US and top 10% in something called "SF-Oakland-Vallejo" by the NYT, which, I take it, is not the classic SF-Oakland-Fremont MSA (source). I suspect that in SF it's probably even lower percentile, something like 18%. It would be nice to see some real stats on this. Regardless, earning at the level of top 18%, and even 10% does not put you in an upper class in my book.

[zombocom]

Originally Posted by pch1013

If you use the benchmark that 1/3 of your income (max) should be spent on rent, then someone earning $121K could afford to spend $3388 on rent.

That ratio seems to creep ever higher as time goes on... also, is that pre tax income, or after tax?

[mysticaltyger]

Originally Posted by bmw335xi

These kinds of projects are good for rent prices in my opinion. If they didn't build these high end units, then you potentially would be competing with them in your own building. More housing whether it is cheap units or high end units help stabilize rent prices. It won't fix the problem because there are more factors involved, one being lack of space, but it still helps.

You have more people wanting to move to San Francisco than supply allows (essentially). Rejecting developments will increase the rate of rent hikes. Approving developments will decrease the rate of rent hikes. If this development wasn't approved, there would be that many more executives etc with better credit and income than the Average Joe competing for housing.

If you think companies like Google, Facebook, Zynga, Wells Fargo etc are the enemy, well then without them we would probably be like Detroit. Sure rent would be cheap, but our city would suck and would most likely be forced to file for bankruptcy considering our massive spending habits. These companies provide good wages, yet people complain their employees are the reason why rents are so high. These same people then condemn companies like Walmart because they don't pay their employees enough. Well, what do you want! LOL (I'm not speaking to you directly)

This. All of it. X 100

[Larry Siegel]

Originally Posted by pch1013

No it's not, unless you happen to be Mitt Romney. Not even in SF or Manhattan.

Only 1.5% of households in the US have an income exceeding $250,000. If you really think that's "middle class," then you've just redefined the term out of existence.

In Manhattan I had to demonstrate an income of $132,000 to rent a studio apartment.

$250,000 is middle-middle class for a family with children in Manhattan. Half goes to various governments; half of the rest goes to the landlord. My boss, who made about $750,000 when I retired, is considered upper-middle class even in Manhattan, but he could only afford to buy a 3-bedroom coop in a mixed-income area and then he had to wait until his late 40s. He doesn't have a car, or a second home, and has never been on a private plane. School (not college, school) costs him $30,000 a year, per kid.

Different parts of the country have different costs of living in case you haven't noticed.

[04kL4nD]

What the most common jobs in San Francisco area pay - Get To Work

Interesting read. Looks like a lot of tech workers are making more than 40-50k like some people were claiming...

[branh0913]

Originally Posted by 04kL4nD

What the most common jobs in San Francisco area pay - Get To Work

Interesting read. Looks like a lot of tech workers are making more than 40-50k like some people were claiming...

Everyone who works in IT is NOT a developer. That's the most common (and incorrect) perception out there. That's just flat out wrong.

[wooliemonster]

I think 100k-150k is the meat of the curve for competent software engineers. I don't know about other positions. However, even making 150k, you shouldn't budget more than 25% of gross for rent so that you can save for a downpayment, retirement, etc. That leaves $3125 for rent, which is on the low side for a decent apartment anywhere in the city. A more conservative 20% is $2500. I found a place (with some trade offs) at 15% so I can save quickly to buy another place.

[Ultrarunner]

This is the reason nearby cities are seeing an influx of SF refugees.

All of my new renters in Oakland are families that left SF.

Most recent rented a 3 bedroom 2 bath house with lots of storage in Laurel for $1650 including water and garbage.

I'm glad SF is there for people that have to have it... for the rest of us there are plenty of options in the East Bay and we have the SF skyline to as a backdrop whereas a lot of SF has Oakland as a backdrop.

[04kL4nD]

Originally Posted by branh0913

Everyone who works in IT is NOT a developer. That's the most common (and incorrect) perception out there. That's just flat out wrong.

I never said they were.