OT: California Dreamin': Density is the Future.

[prototoast]

Originally Posted by Likes2ridefar

I read it’s more like 30% now.

I believe the ~30% refers to all single family homes that are owned by "investors"--which includes small landlords who might own only 1 or 2 properties, and ~5% refers to the single family homes that are owned by large, multi-investor investment funds.

[AngryScientist]

Originally Posted by makoti

I've lived in my house in Northern Va a LOOOONG time. Never gave serious thought to moving, so never thought about if I would sell or rent it out if I did move. Well, talking to a neighbor, I just found out that the rent for my townhouse is currently at around $3200 a month. I was floored. No idea. That is damn near triple what my highest mortgage payment was to buy the place.
How? How do people afford that? If that's just to rent, what is the mortgage?

What are you paying (if i may ask) in property taxes/year?

[Likes2ridefar]

Originally Posted by prototoast

I believe the ~30% refers to all single family homes that are owned by "investors"--which includes small landlords who might own only 1 or 2 properties, and ~5% refers to the single family homes that are owned by large, multi-investor investment funds.

From a first time buyers perspective being priced out of the market this difference probably doesn’t matter to them.

[.RJ]

Originally Posted by AngryScientist

What are you paying (if i may ask) in property taxes/year?

Probably $6k at that rental cost.

Mine just went up $1000 in Reston, Va.

[rothwem]

Originally Posted by XXtwindad

On a related note: https://www.nytimes.com/2024/02/23/u...lar%20measures.

“As housing costs soar, Washington State wants to limit annual rent increases to 7 percent. Oregon and California have passed similar measures.“

Rent control has shown to be counterproductive time after time, if landlords can't make money they'll dump the property, reducing rental inventory. With less incentive to build, the total housing stock is reduced, and that puts upward pressure on purchase prices.

Trying to lower prices by any way other than building more units is destined to fail.

FWIW, I'm onboard with densification. I own a duplex, and I used to live in one side and rent the other, it was awesome. I got to choose my neighbor and my mortgage was $300 after the rent was paid. Win-win. I've got kids now and needed a bit more space, so I moved out and rented both sides. Its been a solid investment. I've found that most people I rent to aren't people that would have bought a house instead of renting given the opportunity. Each unit is 720 square feet, so its cheap and in a great location--most of the tenants I've had have been grad students or recent grads, they live in my place long enough to save money and then move out after a year or two to buy a house.

I'm considering doing an ADU at our current place to make it effectively a duplex. Biggest issue I'm encountering is that the cost of construction is HIGH. At ~$300/square foot, a 720 square foot building that's similar size to one of the duplex units would run $216,000, which is a $1500 mortgage payment (assuming a cashout of some kind) and a 0$ cashflow situation, aka, not worth doing.

[OtayBW]

"Blow up your TV
Throw away your paper
Go to the country
Build you a home
Plant a little garden
Eat a lot of peaches
Try an' find Jesus on your own"

John Prine
Spanish Pipedream

[jimcav]

I was 1st out in San Diego in 1997, and since then, the population has really grown, the number of HWY lanes has grown, there is a dedicated HOV lane, but when I drive I5, I8, I15, 78, 52, and the major secondary roads (which now is for retail purchases or to take my kid to some event), I see the same or even lower ratio of cars with 2+ people as I did when I 1st came out here.

what is missing is better mass transit and/or the willingness to use it, or, god forbid, the same people bitching would carpool.

It is one of the main reasons I commuted by bike when we came to San Diego in '97, and I continued that until I retired from active duty--such a waste of time in traffic' and I'd feel bad driving just myself to the base (we lived in areas with no other military near us going to my base, and by 2008, most of my military coworkers lived way out in Fallbrook, El Cajon, or Temecula).

[pdonk]

Originally Posted by OtayBW

"Blow up your TV
Throw away your paper
Go to the country
Build you a home
Plant a little garden
Eat a lot of peaches
Try an' find Jesus on your own"

John Prine
Spanish Pipedream

But then you'll want to pave gravel roads, cause urban sprawl and become an entitled BANANA.

Prine was the first real concert I every went to when I was about 9 years old. Saw him a few more times throughout his life, great performer.

[OtayBW]

Originally Posted by pdonk

But then you'll want to pave gravel roads, cause urban sprawl and become an entitled BANANA.

Prine was the first real concert I every went to when I was about 9 years old. Saw him a few more times throughout his life, great performer.

Indeed. Some of his songs - actually nearly ALL songs on his first album - just about stop me in my tracks.

[makoti]

Originally Posted by AngryScientist

What are you paying (if i may ask) in property taxes/year?

About $6300/yr it looks like

[benb]

Originally Posted by OtayBW

Indeed. Some of his songs - actually nearly ALL songs on his first album - just about stop me in my tracks.

Yep. I gave his first album to my parents for Christmas. I had heard his later stuff but hadn't heard the first album.

That first album is just incredible for someone right at the start of their career.

[pdonk]

Originally Posted by benb

Yep. I gave his first album to my parents for Christmas. I had heard his later stuff but hadn't heard the first album.

That first album is just incredible for someone right at the start of their career.

If you want a real treat, find the Singing postman Delivers, it is a series of demos and other tracks from before the first album and has most of the first album on it.

now back to complaining about housing affordability.....

[Alistair]

Originally Posted by .RJ

Institutional investing makes up less than 5% of the single family home market.

5% of a really big number is usually still a big number. I'm assuming 5% of the housing market is more than enough to make a dent in pricing (one way or the other).

[Alistair]

Originally Posted by makoti

How? How do people afford that? If that's just to rent, what is the mortgage?

7% loan, 30 years, on a $600k home with 15% down is going to be close to $4000/month (including tax/PMI/insurance, but not HOA dues).

[jimcav]

Originally Posted by Alistair

7% loan, 30 years, on a $600k home with 15% down is going to be close to $4000/month (including tax/PMI/insurance, but not HOA dues).

there are no longer any homes in a 10-mile radius near me anywhere near that, except a few mobile home communities, but then you don't really own the address. When the boys are both out of college, if we sell, we won't be able to buy anywhere near our current neighborhood. I really have no idea how current families are moving in--I assume they have huge down payment help.