People are opting out. I redirected my career away from a tech mega-corp for precisely the reason that eventually I'd have to relocate to the bay area to continue advancing. There's absolutely no way I'm doing that to my family.
Why the hell do they push this so hard? Is it just some ponzi scheme to prop up the housing market or something?
The fact that rents are still higher than that is pretty good evidence that a large number of people continue to opt in.
It’s the same situation as in New York.
Plenty of landlords can afford keeping their prices high hoping for the eventual bite. If they lower their prices further they do a bigger damage to their portfolio for years to come once you factor in rent control.
They hope to ride out the lows.
EDIT: of course if you mess up, that mistake is now set in stone and backed by legal resource of your city, so it’s not risk free.
this assumes the returns set out by the rent control is appropriate in all future situations. Even with the allowance for increases, there are still situations where such an increase is insufficient.
Unfortunately, the proverbial cat is out of the bag and we will likely see repeats of such “subsidies”. It’s unclear how it will change the calculations long-term. Short-term, it has already driven the unlucky small landlords out of business and forced surviving to keep greater reserves. This increased reserves need will definitely hamper future development and probably will drive rents up even more due to lack of supply. Large corporate landlords tend to focus on the higher end of the market, but the shortage is in the more affordable price range…
I didn't read the article, and assumed the opposite of its actual conclusions.
Rents are way down from pre-2020 times.
Which makes it even more fun to read the responses that argue rents will not drop even when demand declines.
Demand for some things is elastic only down to a point. That's the point where customers are hostages.
People stop getting papers delivered in favor of online news, so prices have to go up to cover fixed costs, pushing more people to stop getting papers delivered and so on.
I notice, walking around the 'hood, that some people still get the San Jose Mercury-News delivered. Why?
I think they just have to get a morning paper, and if it's getting shittier by the year, well, so be it. You're right, lots of readers have already cancelled, but there's a core of readers who won't. The Merc can raise the price and they'll just pay it.
The rent being higher feels more like collusion than actual demand.
And if you dig into the data you'll also notice that there's "asking rent" and "effective rent" (rent after concessions)
That is a very odd choice. I get that the bay has a crime/homeless/CoL problem but fleeing to a place with much of the same issues in its own cities while also being one of the worst parts of the country culturally outside of then isn’t any better, IMO.
Like I’m not even sure what language you’re supposed to use.
Economic migrant, most of the people 'fleeing' venezuela are elites, not people who were actually victims of the economy collapsing.
FWIW, I’ve lived in 8 states - TN, MS, GA, AK, CO, NY, NJ, and FL. Every one of them has pros and cons, and you find all sorts of people everywhere. This idea that a particular state is somehow culturally worse, reflects a lack of either depth or life experience.
You explicitly said the state which has laws on the books banning teaching that chattel slavery was a bad thing is a good place to raise a child in.
You have never lived there, if I understand correctly. Why wouldn't you move there? Is there some experience you have with it? Housing prices? Internet rumors?
1. Get a full time nanny.
2. Buy a home at a desirable neighbourhood.
I wouldn't mind being there as opposed to this winter in the bay...
Do what?