4 ms·

I live on 22 block Valencia.. I've had 4 neighbors move out in the past month. So as far as price.. I can't say. But as far as folks moving out. I can.

jedberg 6y ago
People are moving out but not in. Move-ins determine the rental market price.
- foxtr0t 6y ago
  This is an oversimplification of already simple market dynamics. What sets the market is the supply and demand. If demand drops sharply after an event like covid-19 and supply is held constant, prices will go down except in extremely distorted markets like the ones ISPs and telcos play in.
  - jedberg 6y ago
    There are two parties to the transaction. The market clearing rate is set when the two parties agree. When one party is not showing up, there is no market clearing rate. The intrinsic value may in fact be down, but there is no way to know for sure without two parties in the transaction.
    - pascalxus 6y ago
      Over time, he's right in principle. But maybe, there just hasn't been enough time yet for it to play out. if we're seeing price declines, then it's already playing out.
tedivm 6y ago
My coworkers in Berkeley are all telling their property managers that they need to either lower the rent or they're not going to renew. Once the UC system said they weren't opening back up for physical classes in the fall demand for places near campus dropped considerably. My landlord hasn't lowered rent, but to incentivize us to stay he replaced our washing machine and upgraded some stuff around the property. That being said if my company ends up going fully remote (which looks likely) I'll probably be leaving the bay area anyways.
- jedberg 6y ago
  > Once the UC system said they weren't opening back up for physical classes in the fall demand for places near campus dropped considerably. You've been given bad info. The UC President said all campuses will be open in the fall, in a hybrid mode. Berkeley's Chancellor has said that labs will be open with restrictions, but most likely lectures will not. That of course could change. One of the properties I manage is in Berkeley. I just renewed the lease in May, but I put in a clause that allows the tenants to cancel if classes are cancelled. They wanted to make sure they had housing secured in case classes came back. I also told them we would reduce the rent in the Fall if necessary. As a landlord, I'd much rather have renters at a reduced rate than none at all, even if that rent is near zero, just to keep the place occupied to reduce crime.
  - tylerhou 6y ago
    UC Berkeley has not yet made a decision on whether classes will open in the fall. There are three possible plans for the fall at the moment [1]. The UC President has said that they expect a hybrid mode of instruction, but it's not clear whether there will be in person classes. It seems like each school themselves have a say in the decision. > Napolitano indicated that each UC campus would be required to “meet system-wide thresholds” for Covid-19 testing, contact tracing and isolation before being allowed to open. > Once the standards are met, campuses “can consider whether to maintain fully remote instruction in the fall or return some portion of their students to campus.” > A decision is expected in the middle of June. [2] A Berkeley CS professor also posted that he thinks the fall term will (and should) be online-only: https://www.reddit.com/r/berkeley/comments/g9vxb0/why_i_think_fall_will_be_online_only_nick_weaver/ https://www.reddit.com/r/berkeley/comments/g9vxb0/why_i_thin... [1] https://news.berkeley.edu/2020/05/06/an-update-on-uc-berkeleys-plans-for-the-fall-semester/ https://news.berkeley.edu/2020/05/06/an-update-on-uc-berkele... [2] https://www.mercurynews.com/2020/05/20/coronavirus-university-of-california-campuses-will-open-in-the-fall-napolitano-says/ https://www.mercurynews.com/2020/05/20/coronavirus-universit...
    - jedberg 6y ago
      I think you just said the same thing I did.

jedberg 6y ago

People are moving out but not in. Move-ins determine the rental market price.

foxtr0t 6y ago
This is an oversimplification of already simple market dynamics. What sets the market is the supply and demand. If demand drops sharply after an event like covid-19 and supply is held constant, prices will go down except in extremely distorted markets like the ones ISPs and telcos play in.
- jedberg 6y ago
  There are two parties to the transaction. The market clearing rate is set when the two parties agree. When one party is not showing up, there is no market clearing rate. The intrinsic value may in fact be down, but there is no way to know for sure without two parties in the transaction.
  - pascalxus 6y ago
    Over time, he's right in principle. But maybe, there just hasn't been enough time yet for it to play out. if we're seeing price declines, then it's already playing out.

tedivm 6y ago

My coworkers in Berkeley are all telling their property managers that they need to either lower the rent or they're not going to renew. Once the UC system said they weren't opening back up for physical classes in the fall demand for places near campus dropped considerably. My landlord hasn't lowered rent, but to incentivize us to stay he replaced our washing machine and upgraded some stuff around the property. That being said if my company ends up going fully remote (which looks likely) I'll probably be leaving the bay area anyways.

jedberg 6y ago
> Once the UC system said they weren't opening back up for physical classes in the fall demand for places near campus dropped considerably. You've been given bad info. The UC President said all campuses will be open in the fall, in a hybrid mode. Berkeley's Chancellor has said that labs will be open with restrictions, but most likely lectures will not. That of course could change. One of the properties I manage is in Berkeley. I just renewed the lease in May, but I put in a clause that allows the tenants to cancel if classes are cancelled. They wanted to make sure they had housing secured in case classes came back. I also told them we would reduce the rent in the Fall if necessary. As a landlord, I'd much rather have renters at a reduced rate than none at all, even if that rent is near zero, just to keep the place occupied to reduce crime.
- tylerhou 6y ago
  UC Berkeley has not yet made a decision on whether classes will open in the fall. There are three possible plans for the fall at the moment [1]. The UC President has said that they expect a hybrid mode of instruction, but it's not clear whether there will be in person classes. It seems like each school themselves have a say in the decision. > Napolitano indicated that each UC campus would be required to “meet system-wide thresholds” for Covid-19 testing, contact tracing and isolation before being allowed to open. > Once the standards are met, campuses “can consider whether to maintain fully remote instruction in the fall or return some portion of their students to campus.” > A decision is expected in the middle of June. [2] A Berkeley CS professor also posted that he thinks the fall term will (and should) be online-only: https://www.reddit.com/r/berkeley/comments/g9vxb0/why_i_think_fall_will_be_online_only_nick_weaver/ https://www.reddit.com/r/berkeley/comments/g9vxb0/why_i_thin... [1] https://news.berkeley.edu/2020/05/06/an-update-on-uc-berkeleys-plans-for-the-fall-semester/ https://news.berkeley.edu/2020/05/06/an-update-on-uc-berkele... [2] https://www.mercurynews.com/2020/05/20/coronavirus-university-of-california-campuses-will-open-in-the-fall-napolitano-says/ https://www.mercurynews.com/2020/05/20/coronavirus-universit...
  - jedberg 6y ago
    I think you just said the same thing I did.