SF Rental Market - Dec 2017 - Jan 2018?

How are you gettng “price history” to show on trulia? For example I am looking at a listing below that I suspect is overpriced at $7200 … but I do not see “price history “…?

Since 2016 Silicon Valley rentals have been slowing down. Campbell Harker neighborhood SFH took 2 months to rent out in 2016. A lady came in looked at it said a year earlier I would have 18 visitors and being rented first day. Same house came on the market last summer reduced the rent to $3800 from $4000 a year earlier. 44 days later it was not rented. Had a bad experience in Saratoga last summer. Asked 4600-way too high. That took 39 days. An out of state sucker moved in. Ditto in North San Jose taking two months.
Have one in Morgan Hill a brand modern nice home. Viewers did not have $6000(PITI) with 20% down but asked where is the nice landscaped backyard? It went for $4K in 10 days.

Unless it is near MV, Sunnyvale near job centers at competitive price it is not easy to rent out to. Fewer people come for jobs often citing affordability being the key reason. In fact I sense the home price will not hold up much 2nd half of the year. It takes two interest rate increases to hear the wake up call.

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Last year I rented a unit at reduced rent after previous tenant moves out. That was in May and June, supposed to be best time. Rental market definitely has slowed and rent has dropped

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Two images, the format of this blog makes it look like one. One is from Trulia, second from Zillow.

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Hi Sam - interesting to relate your experiences about rental slowing down in SV since 2016. I had a vacancy in NE San Francisco (2 bedroom condo w parking) in March of that year and I was able to rent it out for mid 5K two weeks after the previous tenant gave 30-days notice (meaning before the previous tenant even moved out). That’s only one data point but I feel like 2016 in SF was still super strong.

I wonder how much of this is related to SF and SV competing against each other to attract businesses (and subsequently renters).

While you guys have been sitting on a flat rental market, rents are way up in Sacramento and Tahoe. My apartments net rents has gone from $50-85k since July 2016…The property value has almost doubled because in addition cap rates are dropping.
Same in Sacramento

Why are you bragging so much about Sacramento and Tahoe? I haven’t even begun bragging about the East Bay. You think rental values there stayed flat like Silicon Valley or shot up like a rocket like your area? :wink:

Been bragging for 3 years. No one on this forum acknowledged it. Although a few probably took my advice

I think it’s because Tahoe is too far away. You want people to be envious just buy a couple houses in Palo Alto paid with all cash :smile:

Don’t care about envy just customers. Come up and buy one. Flipped 6 houses in Stockton in 2016. There should have been buyers from here.

I have houses in both Sac and Stockton.

Net worth estimate increases…

We have had same tenants for the last 10+ years. Under market for sure but we don’t care.

I don’t care for Sacramento, but I’m ok with Folsom east areas.

How much rent increase have you seen?

It seems most investors here have been focused on the stock market. Now may the time to look east at real estate.
Still room for rent increases in the exburbs.

Didn’t raise rent much as it’s the same set of tenants. But the strongest rent increase for me is actually in Santa Rosa. Even before the fire rent is on strong uptrend. Frankly I don’t know what’s going on up there. Is economy doing very well there?

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Anti growth people are fierce up there. Extreme housing shortage even before the fire. My wife had an agent flipping in Napa, can’t find any deals now.

By Sac, he meant Roseville. So accounted for.

Austin is hot, can increase rent every year, see chart below:

Looks like a ten percent increase in Austin in 3 years. Tahoe has gone up 30-50% in three years.
Studios and SROs have gone from $500-$1000
Three bedrooms house1300-2200
Two bedroom apts from 750-1350
I bedrooms from $600-1200

Not in my book, that is when students end and leave so many vacancies. July and August I feel is good because you have students looking as well. I have had no issues with graduate students renting from me.