4 ms·

200k in the Bay, maybe. SF city population is 800k-odd, no way there's 25% churn in two years… The message I got was that the new housing is aimed at top of ma

200k in the Bay, maybe. SF city population is 800k-odd, no way there's 25% churn in two years… The message I got was that the new housing is aimed at top of market when mid & low end is where it's really needed.

ufo 10y ago
That said, if someone moves from an older (and therefore cheaper) apartment into one of the new and expensive apartments it frees up some mid&low end housing.
- seanp2k2 10y ago
  Most rent-control laws allow re-pricing to market prices when someone moves out, so someone moving out doesn't typically open up that same price point. You end up with situations where your next-door neighbor is paying half as much for the same apartment. Property owners and real estate developers aren't going to price units lower out of the goodness of their hearts, or due to "supply and demand"...they're happy to let $3k/month 1bedrooms sit empty until some sucker comes along to pay their ransom. By colluding to create a situation where one can't get a studio below $2600/month in SF proper, they can ensure slow but steady growth. It'd be a great experiment if someone had the cash to do it: open an apartment tower with units priced much closer to their actual cost in SF. It'd probably be around 30% of what they currently go for.
  - m0llusk 10y ago
    No they are not happy. This is why there are deals on apartments in many buildings with vacancies. A great example of this is the big "L7" complex that just started renting the first finished units at 8th and Harrison. Those studios are advertised as $3000/mo but with two free months now given to those who lease for a year which means they are actually $2500/mo units. This kind of gaming is going on all over the market and there will probably be some property owners slash bag holders selling off assets and being restructured in order to get through this. Much of the recent construction was based on the idea that the market could support any amount of luxury units that were built. The current slump is testing that.
falsedan 10y ago
Hi downvoters, I don't understand what's negative about this post. Please leave a comment so I can improve my posting style. Ok thx --falsedan

ufo 10y ago

That said, if someone moves from an older (and therefore cheaper) apartment into one of the new and expensive apartments it frees up some mid&low end housing.

seanp2k2 10y ago
Most rent-control laws allow re-pricing to market prices when someone moves out, so someone moving out doesn't typically open up that same price point. You end up with situations where your next-door neighbor is paying half as much for the same apartment. Property owners and real estate developers aren't going to price units lower out of the goodness of their hearts, or due to "supply and demand"...they're happy to let $3k/month 1bedrooms sit empty until some sucker comes along to pay their ransom. By colluding to create a situation where one can't get a studio below $2600/month in SF proper, they can ensure slow but steady growth. It'd be a great experiment if someone had the cash to do it: open an apartment tower with units priced much closer to their actual cost in SF. It'd probably be around 30% of what they currently go for.
- m0llusk 10y ago
  No they are not happy. This is why there are deals on apartments in many buildings with vacancies. A great example of this is the big "L7" complex that just started renting the first finished units at 8th and Harrison. Those studios are advertised as $3000/mo but with two free months now given to those who lease for a year which means they are actually $2500/mo units. This kind of gaming is going on all over the market and there will probably be some property owners slash bag holders selling off assets and being restructured in order to get through this. Much of the recent construction was based on the idea that the market could support any amount of luxury units that were built. The current slump is testing that.

falsedan 10y ago

Hi downvoters, I don't understand what's negative about this post. Please leave a comment so I can improve my posting style. Ok thx --falsedan