some relief in housing v2.0 (Los Angeles, San Jose: real estate, apartments, rentals)

[ggcd951]

Posted same thread earlier. So I named this one v2.0
Here is another new article. This time growth not slowing but price has been reduced. Hope the trend will continue for sometime.
Bay Area home sales, prices drop in September - San Jose Mercury News

[cardinal2007]

I remember reading a similar article about rent, particularly that the new apartments coming online now:
Bay Area apartment rent increases slowing, report says - San Jose Mercury News

I saw a different one specifically mentioning all the new apartment construction in North SJ, I doubt either will really go down significantly short of a recession. I think the bad part is that the housing is not being built close to jobs, but more offices are, like the Mayfield Mall project in MV.

[ggcd951]

saw that article too. it helps although a little. Uncontrolled rise rent and housing is especially unsettling.

[countofmc]

Seems like there was not much building in 2008-2009 for obvious reasons, and the construction since then has mostly been rentals as a result of skyrocketing rents.

I wouldn't be surprised if this leads to a glut of rentals when the next recession hits. I know that sounds crazy because of the overall housing shortage here, but during the last recession rents fell by double digits, and landlords basically had to beg tenants to stay. I wish I could dig up some old news articles I read during that time, landlords giving away free TVs and stuff. Rentals generally are more susceptible to falls during recession since it's much easier for people to leave a rental to move somewhere cheaper, move in with parents, to another city to find a job, etc.

[ggcd951]

that is explanation however bay area, surrounded by two mountains from both sides expansion seems to be challenge and there is always shortage of land to build, the one argues. Just compare it to texas cities where austin, houstin and dallas can expand infinitely without limitation. My guess is it is also one of the strong factors driving the price of real estate upward.

[fashionguy]

I don't think bay area, especially the south bay is in lack of land at all. Look around. There are waste land and empty parking lots everywhere. Compared to most cities in the east coast and Asia, the south bay looks like a giant village. The density is laughable for any true big city, well, except for the cities in Texas and the south in general. It has more to do with tight regulations, backwards zoning laws, and also because current owners oppose any construction fearing it would lower their home value in which they already paid a huge chunk of money.

I would buy that San Francisco and part of the Peninsula is in lack of land. South bay, no way.

Originally Posted by guyencd000

that is explanation however bay area, surrounded by two mountains from both sides expansion seems to be challenge and there is always shortage of land to build, the one argues. Just compare it to texas cities where austin, houstin and dallas can expand infinitely without limitation. My guess is it is also one of the strong factors driving the price of real estate upward.

[sonarrat]

Originally Posted by fashionguy

I would buy that San Francisco and part of the Peninsula is in lack of land. South bay, no way.

The South Bay has no lack of land. What we lack is good transportation infrastructure to handle the pressure that more housing units will put on our roads. Just look at Los Angeles to see what results from unchecked expansion and infill.

[neutrino78x]

In Downtown what we want is housing density, buildings that hold more people for the same plot of land. Not single family homes sprawling outward.

[JenniferBowman]

I like bay for life, want some tour and see some beautiful place

[ggcd951]

Sure it is relative notion. Certainly bay area may not be as good as Texas in terms of space and expandability but not as bad as big Apple.