Friday, July 28, 2006

Rent hikes

I have a coworker who is hunting for home. He is sort of lay in ambush, but actively researching and comparing home prices. He just informed me that the 30-year mortgages rate has been declining since middle of July. Originally his mortgage broker could lock around 6.8%, now he could get 6.2% or something. The short term mortgage rates are also dropping. Looks like some financial forces out there are attempting to make the housing bubble last much longer.

He started to look for house after the management of his apartment complex in Sunnyvale started renovating program and going to hike up rent by $200 for crappy two bedroom apartment. He looked around and found out that not long ago, there seemed to be more vacancies, much lower rents and no apartments are offering specials. The rents are going up every where. Sometimes he thinks that may be he made a mistake not buying a few years back. I can attest to the rent increases. I myself, being a former Bay Area apartment renter, did not see anymore street signs "one month free rent" in apartment where I lived before.

2 comments:

Anonymous said...

i have been apt searching for the past 3 months, and most complexes increased rents by 10% or more vs 1yr ago -- cupertino is more like 15%+. Forge Homestead went up from 1,375 (w/ 1mo free) to 1,600 (no specials) for 700 sq ft 1 bed / 1 bath. they are by far the worst offenders.

most stop giving away free month rent or move-in specials early '06. and rents started to pick up in May.

not sure what caused the recent spike though, but many apts like Prometheus (http://www.prometheusreg.com) are remodeling many of their apartment complexes (adding granit counter tops, wooden floors, ac units, etc), then increase prices from $150 to $300 a month.

san jose is the only reasonable place to rent now as they have rent control (max increase 8%/yr).

Anonymous said...

I'm looking for apartment too and today first time since 2000 I've seen in the apartment advertisement on craigslist the following "NOTE: You must make at least $5000 a month to qualify". They asking $1600 for 2 bedrooms.