Friday, January 05, 2007

"Slight Increase" in Rental Rates for 2007?

From the Sacramento Business Journal:

Sacramento has one of the nation's top 10 multi-family rental housing markets, according to a Grubb & Ellis Co. report released Tuesday. The company's Investment Opportunity Monitor listed population growth, a high percentage of likely renters according to age, strong job creation and expensive housing as factors that will benefit the residential rental market in the coming year. Landlords can expect a slight increase in rental rates, the report said, and the vacancy rate should remain steady due to new construction.
From Bloomberg:
Rents in the fourth quarter fell from third-quarter levels in six metropolitan areas: Sacramento, California; Charleston, South Carolina; Indianapolis; Birmingham, Alabama; Dayton, Ohio; and Omaha, Nebraska [according to a report by Reis Inc., a New York-based research firm.]
Also, the local NPR station interviews Bee housing reporter Jim Wasserman, among others.

10 comments:

Sacramento Printing said...

The real estate market in Sacramento looks pretty good to me. I do lots of printing for real estate agents and it seem as if they are increasing their business. What do you think is next for the market? I know a few customers that are in the market for buying a house.

Sacramento Printing

Anonymous said...

Sounds more like they are increasing their ADVERTISING to me in the hopes of generating more business in a declining market. The two don't necessarily go hand in hand.

patient renter said...

"Sounds more like they are increasing their ADVERTISING to me in the hopes of generating more business in a declining market"

EXACTLY what I was going to say.

drwende said...

How can rents edge up when there's a clear over-supply of rental homes? There was an over-supply 18 months ago. More houses have been built since then. More people have decided to "rent out for a while" houses that aren't selling. Population is not growing substantially. So where will all this rental demand come from?

kxmpn said...

How?

The Sacramento Business Journal is a phoney baloney "news" organization...

The Sacramento Business Journal is nothing more than a shill for the local business community...

The Sacramento Business Journals relationship to journalism and as an honest reporting of the news is like Bush's relationship to truth and knowledge

dan said...

How?

The Sacramento Business Journal is a phoney baloney "news" organization...

The Sacramento Business Journal is nothing more than a shill for the local business community...

The Sacramento Business Journals relationship to journalism and as an honest reporting of the news is like Bush's relationship to truth and knowledge

Gwynster said...

As I had said previously, we were looking to rent a much large home. After looking around, we decided to stay put.

In the last week, I've had at least 6 calls from people I spoke with who weren't willing to negoticate on rents and lease durations. They are all now willing except my terms and 2 offered even lower rents to try to get me to leave my current rental.

The asking prices for rentals are rising slightly and then the owners are coming back down to earth once the home sits vacant or they have to evict their first round of sub-prime renters.

Perfect Storm said...

I know the Sacramento home rental market is dead. Cannot point to specific media released documentation, but my inquiries of fellow locals has resulted in this opinion. Flippers are losing their axx out there and I mean bad.

Anonymous said...

The people who are renting out their property now that they can't sell it are going to find that they are bringing down the value of their neghiborhood and home.
As a person who provides repair services to private homes, I see amazing damage to the homes from renters. Not all renters are bad, but many could not care less. Pitt bull dogs chewing up the carpet ect. I am in the newer Natomas area and I see it going downhill really fast due to the renters that dont work or care. I belive they are now rentingthe houses to section 8, as many of the renters dont seem to work, but just hang out all day. Damm those slum lord bay area absentee landlords and the evil investors! May their equity plumge and their BMW break down on the bay bridge at noon!

drwende said...

Anonymous, the Section 8 scenario is exactly what I was predicting 18 months ago -- and the former neighbor who's a Bay Area investor scoffed. I saw photos of the interior of his rental when he briefly listed it for sale in the fall, and the difference from when he bought it was disturbing, even though his revolving door of renters hadn't out-and-out trashed it. But it had gone from being a cute house to being an indifferently maintained rental. I'd wonder what the neighbors think, but the entire cul-de-sac is rentals of the same sort.

Within three days of the Wall Street Journal announcing that prices would rebound in the spring, he took it off the market - a total True Believer about how real estate in California never goes down, and being incredibly wealthy is just around the corner.

These are the people who have wrecked neighborhoods throughout the Central Valley.