What do you think will happen to the house/apartment rental market?

[Zeus-cat]

I am looking at this from the marketplace issues, not political. With the eviction moratorium now expired do you think we will see a huge rise in evictions? Do you think this will cause a drop in rental prices as the market will be flooded with rental properties and all the people who have been evicted will be basically blacklisted from renting?

I see this as a lose/lose situation. Renters who get evicted because they can't pay rent will have few options as they will have black marks on their credit reports. Clearly a loss for them. Landlords could have far fewer prospective tenants if they won't rent to people who have been evicted. Also a loss for them. This could be a huge mess. Any thoughts.

 

[rfjustin]

https://managecasa.com/articles/us-rental-property-market/

 

[tsmith1315]

There are plenty of people who need housing right now and can't find it because people that would normally have been evicted for non-payment are still in place. My adult daughter is one of those unable to find an open apartment, thus living with us.

It won't be lose/lose, the market will flourish, and maybe I'll finally get the rest of my house back.

 

[jderimig]

Property values are going up. Property taxes are going up. Landlord costs are going up. Rental costs will go up. Landlords will evict tenants only if the result is an increase in their cash flow.

 

[MClark]

A friend who rents told me today his rent went up $250 and the advertised price for same apartment is $225 more than that.
Rent prices never come down

 

[Funkworks]

The pandemic caused what I would call a "Big Shift": some industries got hit hard (like restaurants), some flourished more than they could ever hoped for (Iike bicycle manufacturing). So it all depends on how close to a pre-2020 economy we will get, or what the new normal is.

Gvts helped slow down drastic change. A high amount of evictions at once would not have been good. When things are gradual, it gives time for people to adapt and settle. Stable rising markets are better than wild unpredictable fluctuations.

If the market was a strut, events and people would be the spring, and the governement would be the shock absorber/damper.

 

[boomtube-mk2]

According to one source 6.4 million renters owe $21.3 billion in back rent.
That's roughly $3,300 each.

Is that an insurmountable amount for many people?
I can see where it could be, as I have also read that 40% of American workers couldn't cover a $400 emergency expense without using a CCD or taking out a loan.

Now if this is true . . .Yikes!

 

[tsmith1315]

If that's true, then what about the property owners who are owed $3300 from each of those 6.4 million tenants?

 

[jderimig]

Its only fair if there is a moratorium on rent there should be an equal moratorium on landlords taxes to local and state governments.

 

[tsmith1315]

And their mortgage payments, you can't assume the property is paid for.

But then... What about the bank that holds the mortgage? Somebody has to foot the bill.

 

[boomtube-mk2]

If that's true, then what about the property owners who are owed $3300 from each of those 6.4 million tenants?

The way things seem to be shaping up; I'm guessing they'll just get .

 

[KC3KNM]

I'm not sure what will happen, but I'm sick of paying 1250$ a month for one of the cheaper one bedroom apartments in my area. The housing market is absolutely absurd in the greater Burlington area.

 

[boomtube-mk2]

Its only fair if there is a moratorium on rent there should be an equal moratorium on landlords taxes to local and state governments.

HA HA HA HA HA HA HA!!

Oh, you're being serious.

 

[boomtube-mk2]

I'm not sure what will happen, but I'm sick of paying 1250$ a month for one of the cheaper one bedroom apartments in my area. The housing market is absolutely absurd in the greater Burlington area.

If you were living in San Francisco; $1,250 a month would get you a double wide cardboard box located in one of the better lit rat, infested allies.

 

[Sandy H.]

I obviously don't know what will happen, but I'm not sure that we didn't just have an 'adjustment' that now means a starter home will be $300k, a small step up will be $600k and a house like you grew up in will be $1m.

I can't comprehend how that will work, but I also have seen every time gas goes up a crazy amount (hurricane, OPEC, whatever the reason happens to be) it spikes and eventually comes back down, but higher than it was before.

At home, I'm putting off finishing my deck because of wood prices. I'm hopeful that it comes back down to a nominal number similar to what it was before COVID, but maybe it won't. I can say for fact that I would have done things differently if I knew prices would roughly double between the initial demolition and the time to rebuild.

As a reference point (similar for everyone I imagine), I know of 6 house transactions that have happened in the last 8-9 months. Absolutely every house went for 30-40% above what Zillow said they were back in the 2019 time-frame. Great for the sellers who are downsizing, but terrible for the people buying.

Sandy.

 

[KC3KNM]

If you were living in San Francisco; $1,250 a month would get you a double wide cardboard box located in one of the better lit rat, infested allies.

Good thing I'm not? The population density here is no where near that of SF, pretty silly parallel to draw... but whatever floats your boat I guess.

 

[Bill S]

According to one source 6.4 million renters owe $21.3 billion in back rent.
That's roughly $3,300 each.

Is that an insurmountable amount for many people?
I can see where it could be, as I have also read that 40% of American workers couldn't cover a $400 emergency expense without using a CCD or tacking out a loan.

Now if this is true . . .Yikes!

If they were smart, they would have saved that money from all the free stimulus money the .gov has been slinging around. But I bet most of them said yay, no rent for a while, and the .govt is giving us even more free money. Party time.... spend it on crap, save none of it for later.

 

[Cape Byron]

The rental market here in the Northern Rivers region of Oz is non-existent. A house I know of sold for 450K two years ago and it's an $800 per week rental now. Seriously? Who can afford that?

People being kicked out of long-term tenancies so the properties can be rented out to film crews. Locals with a 30+ year rental history living under bridges.

Sure, the burgeoning film industry brings money in for some, but it causes tragedy for others.

No houses available to buy in the local area under about 1.1 million. People loaded with cash from Sydney and Brisbane are buying up anything they can as investments.

People tell me the farm has doubled in value over the past five years. So what; I'm not selling so why would I care?

We have eight people living here, all extended family. The young ones may never leave as it is a financial impossibility to find anywhere else to live.

And don't get me started on the Hemsworths... Selling their Byron property so they can move to Lennox Head and drive those prices through the freakin' roof.

 

[Hobie1dog]

But then... What about the bank that holds the mortgage? Somebody has to foot the bill.

But the Bankers are 100% of the problem explained in this documentary. Every student in every school should be required to watch this all over the whole world to actually learn how bad they are getting Fu#^@ed by the system that threw them overboard years ago and being "Debt Slaves"



If they weren't in the business of putting everyone who walks in the door in DEBT, none of this would be an issue. Insatiable GREED is what the bankers thrive on.

 

[rfjustin]

More great info on lumber here: https://www.corelogic.com/intelligence/what-is-really-happening-with-lumber-pricing/

Imagine being an insurance carrier trying to figure out long term replacement cost methodology given the lumber spike up, now plummeting down.

 

[DaHabes]

The real estate market has been and always will be boom or bust, and you can't predict when it is going to boom and when the boom is going to bust. The fact that housing purchases went nuts because of Covid was not easily foreseen, especially as commodity prices (lumber) was skyrocketing.

As far as the banking industry goes, I do not put any money into major US banks and financial institutions. Greedy, conniving SOB's, one and all. Toxic.

 

[kuririn]

CDC has issued a new moratorium on evictions that extends until Oct. 3rd.

 

[jderimig]

CDC has issued a new moratorium on evictions that extends until Oct. 3rd.

Clearly unconstitutional. Will be injunctioned shortly.

 

[jderimig]

Unprecedented "stimulus" and money printing is all going into assets. The result is housing values skyrocketing along with commodities which will drive up property taxes and insurance replacement costs (premiums). What hasn't gone up are wages. Welcome to a 10-15% reduction in our standard of living thanks to government and the federal reserve.

 

[tsmith1315]

"Debt Slaves"

That ain't me!

 

[cerving]

Clearly unconstitutional. Will be injunctioned shortly.

They probably don't have the power to do that. However, CA does... they've extended theirs until Sept 30th, and the state is paying their rent out of the Covid relief funds. I know people that are seriously struggling, this is a big help for them but eventually the poop is going to hit the fan and they're going to have to find a way to pay or find some really cheap housing. Which doesn't exist in SoCal...

 

[teepot]

The housing market in Las Vegas is crazy. There is more demand than inventory. The same thing happened in the early 2000's. We bought a 2000 sq ft house in a new development for $160,000 in 2000 and sold it in 2004 for $335,000. Took the profit and moved to Pahrump. Paid $35k for an acre and built a 2700 sq ft house for $229,000. Our house is now worth about $400,000. The average house price in Vegas is $450,000 and in Pahrump a staggering $350,000. In Vegas the builders are putting houses up as mast as the can. Apartment complexes are going up as fast as well. Rents are skyrocketing. The lot sizes have shrunk dramatically. There are now 3 story houses popping up like mushrooms. They are so close together you can touch 2 houses at the same time. Traffic has gotten worse . In 1991 when we moved to Vegas there were 200,000 people in the valley. Now there is more than 2 million. At one point around 2003 there were 5k people moving here a month. The casinos were building new properties and hiring hundreds. When the bubble burst in 2007/8 the casinos were shedding hundreds a day. I worked for The Mirage's golf course Shadow Creek for 9 years. MGM Mirage was letting 100 people a day go at all 13 properties. I was one of them. The golf industry just about ceased to exist. As long as people keep moving here from California it's going to stay the same as it is now. California is a dirty word here. As soon as there is more inventory than buyers the bubble will burst and a lot of people will get hurt. I have friends in Eugene Or. and they tell me it is the same up there. I have no plans to sell or to move anywhere else. I like having no neighbors close.

 

[jderimig]

If a homeowner loses the right to decide who lives in his property if he doesn't live there, how long until he loses the right to decide who lives there if he does? No eviction means no ownership, and you need to realize that your house is next.

 

[TheTank]

According to one source 6.4 million renters owe $21.3 billion in back rent.
That's roughly $3,300 each.

Is that an insurmountable amount for many people?
I can see where it could be, as I have also read that 40% of American workers couldn't cover a $400 emergency expense without using a CCD or tacking out a loan.

Now if this is true . . .Yikes!

It’s pretty accurate. Been in the finance industry for 20 years. People are their own worst enemy. Always focusing on the “wants” rather than their needs. The amount of revolving debt people carry month to month is painful. Even when you help them get out from under one pile of debt to where they can breathe…. The quickly and willingly stick their head back under water.

 

[TheTank]

If they were smart, they would have saved that money from all the free stimulus money the .gov has been slinging around. But I bet most of them said yay, no rent for a while, and the .govt is giving us even more free money. Party time.... spend it on crap, save none of it for later.

100% accurate for a majority of cases.