It’s about NYC suburbs but the price points are comparable to ours. Holy cow their rent is much higher than ours.
In a real estate market tinged with so much uncertainty, renting at more than $5,000, $8,000 or even $10,000 a month feels like a safer bet these days to a number of people who could well afford to buy in the suburban counties of Fairfield and Westchester, where median sale prices in many towns are above $1 million. Indeed, demand for high-end single-family rentals is up significantly, a trend that dovetails with a decline in sales in New York and across portions of the region.
Many would-be buyers are adopting a wait-and-see attitude toward a market softened by uncertainty over the new federal tax law and general uneasiness about the economy, even as mortgage interest rates continue to rise. They are less concerned about shelling out so much money for monthly rent than about making a costly purchase they may later regret.
I think many potential buyers here in the Bay share the same calculus:
The growing demand for single-family rentals is sparked in part by concern about the financial impact of the new federal tax law, which caps income-tax deductions for property, state and local taxes at $10,000, said Jonathan Miller, the president of Miller Samuel. Further fueling anxiety, he said, are the effect of rising interest rates and the “unclear economic policy” coming out of Washington.
“We’re going through this era of uncertainty,” Mr. Miller said. “And what do buyers do when the near-term seems uncertain? They pause.”
Glance through the article, where did you get this impression?
Anecdotally, it seems for the same house price, rent in East Bay e.g. Fremont, is higher than in South Bay. Didn’t do any rigorous verification, my suspicion is because the house is bigger in square footage for the same house price.
Their house prices seem to be mostly between 1 and 2M and yet they regularly mention rents north of 5k. So let’s say their house price is 1.5m and rents for 5k. That sure is higher than Bay Area don’t you think? Outside of SF say in Sunnyvale or Cupertino my impression is that rent would be 3.5 to 4K for similarly priced properties? Because you can’t really buy a house with 1.5m in those towns.
Probably referring to apartments where you need to pay HOA (or what is the name for that?)
NYC suburbs’ rent to price ratio seems to be higher than the valley, let me put it this way. And their RE price is falling.
No comparison. NY is a region in decline whereas SF is a growing region.
What is their property tax? My recollection is that in some of these municipalities it is ~4% of assessed value, and there is no cap on assessed value from year to year. So the PITI on a $1.5M house might be $72k (1.2M mortgage) + $60k (prop tax) + $2k (insurance). That’s over $11k/month.