Just got more expensive??? Just = ??? Compare to few months ago or 2009-2012? Confused.
The article talks about high increase in the lower end. Minimum wage increases and low unemployment are driving rents up on cheaper housing that can’t be replaced with today’s high construction costs.
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Falling rents means falling home prices?
Rents and prices were divorced in the BA 40 years ago.
This house is cheaper than a tear down in PA . What would it rent for?
Rents and Bay area prices were never divorced. This is my rough equation for ROE from SFBA over long run…
ROE ( assuming 0 loan ) 10% = 3-4% from Rent + 6-8% from appreciation
You don’t understand BA RE. I am an expert on the subject. Starting with my grandfather who bought rental properties in the 1930s, I have the benefit of over 80 years of accumulated first hand knowledge.
The mantra in other areas us cap rate. In the BA it is appreciation.
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I defer to your authority on this matter.