The affordable housing situation right now is desperate.
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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
4yThat's a pretty nice apartment for a D-class neighborhood.
It is tough. I am working with a friend's daughter who is looking for her first home to purchase. She's qualified for $275,000 and there's only one house on the market for under $300,000. Three years ago, $275,000 would buy a pretty nice house in a nice neighborhood.
The thing is, people are acting like this is new or unique to their area. That just isn't true. My grandpa came home from WWII, got a job, and couldn't find an affordable place to live so he rented a chicken coop from a friend, cleaned it out, and moved in. They washed in a creek and cooked on a campfire. He was a wounded combat vet with more than a few demons to fight (we call it PTSD now) but he got his butt up and worked hard to save up and find an apartment in time for my mom to be born.
It may sound harsh, but most people could fix their situation with some effort, but it's easier to complain about how hard life is. People want to keep working a 40-hour week (or less) and spend their money on $1,000 iPhones, car payments, and other unnecessary purchases while watching TV or taking selfies all day and complaining. I can't even advertise a vacant apartment on facebook because the masses bombard my post with complaints about evil Landlords or how this town used to be compassionate. I'm in a small town and know a lot of the posters personally; they aren't making any effort to improve their situation. The truth is, two people working at a fast-food joint can easily make enough to afford any apartment in this town or even a decent house. Every employer is hiring, and they have been for two years. Most our restaurants are closed 1-2 days a week and working shorter hours and using smaller menus because they are short-staffed, even in the winter without tourists!
There are some tough situations, but most people could improve their situation if they just put in the effort.
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- 4yBjorn AhlbladPro MemberInvestor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
@Jill F. That's a beautiful apartment Jill. Clean, great appliances, floor and paint are really nice. All the best!
- Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes4y
That's a pretty nice apartment for a D-class neighborhood.
It is tough. I am working with a friend's daughter who is looking for her first home to purchase. She's qualified for $275,000 and there's only one house on the market for under $300,000. Three years ago, $275,000 would buy a pretty nice house in a nice neighborhood.
The thing is, people are acting like this is new or unique to their area. That just isn't true. My grandpa came home from WWII, got a job, and couldn't find an affordable place to live so he rented a chicken coop from a friend, cleaned it out, and moved in. They washed in a creek and cooked on a campfire. He was a wounded combat vet with more than a few demons to fight (we call it PTSD now) but he got his butt up and worked hard to save up and find an apartment in time for my mom to be born.
It may sound harsh, but most people could fix their situation with some effort, but it's easier to complain about how hard life is. People want to keep working a 40-hour week (or less) and spend their money on $1,000 iPhones, car payments, and other unnecessary purchases while watching TV or taking selfies all day and complaining. I can't even advertise a vacant apartment on facebook because the masses bombard my post with complaints about evil Landlords or how this town used to be compassionate. I'm in a small town and know a lot of the posters personally; they aren't making any effort to improve their situation. The truth is, two people working at a fast-food joint can easily make enough to afford any apartment in this town or even a decent house. Every employer is hiring, and they have been for two years. Most our restaurants are closed 1-2 days a week and working shorter hours and using smaller menus because they are short-staffed, even in the winter without tourists!
There are some tough situations, but most people could improve their situation if they just put in the effort.
The DIY Landlord Book4.7247 Reviews - 4yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
@Nathan Gesner you have affordable housing as in cheap rent and then you have affordable housing for first time homebuyers who have done what is necessary to buy something and not be life long renters.
the issue is complex when it comes to affordable housing.
out in the West coast government red tape has increased the cost of a new home by at least 100k per house.
land prices are very high cant buy a building lot for much less than 100 to 150k within in commute or metro area.
then U have cost to construct which is at 100 to 300 a foot.. nice apartments are costing 200k a foot and up to build in the metro area. and houses pretty much cost 400k to build.
But if people wanted to move to other areas of the country there is plenty of houses to buy at 150k and under many under 100k and some right at 50k.. but most homeowners wont accept the neighborhoods that have sub 100k housing its all the province of Landlords and rentals. And all the social issues that come along with it.
- Investor · Rochester, NY · Member since 2016 · 576 posts · 358 votes4y
I appreciate your story. I had a similar experience a few months ago with a simple 3 bedroom house. Many qualified and somewhat desperate applicants, only one house to rent. "I feel really bad. . . . It's really heartbreaking." I understand those emotions. I had them too. Wish you the best.
Have a great 2022.
You have a nice, affordable clean apartment including heat and sewer-- you better believe people will be lining up! If you don't rent it within a week, your applications will likely be over 30, with like 150-200 inquiries-- just be ready!
That being said, I feel for anyone looking on the market for a rental. The market has changed, it's VERY competitive. It's the perfect crap storm for tenants.. everyone who wanted to move in 2020/2021 is moving, plus regular people now in 2022. The eviction moratorium screwed a lot of landlords-- so they just sold their houses completely because of bad tenants, and even good tenants-- landlords are selling now because the market is so hot! You throw a huge pool of people into the prospective tenant mix, and add a housing shortage, it's very uneven. People are moving, thinking it will be easy/smooth, but it's absolutely not!
That being said, pick what makes most sense. Good people might be in a hotel because they didn't expect it to be this hard.. they might be in a hotel because they just started working again, it's a slippery slope. They might also be in a hotel because they were a tenant from h*ll and trashed the last place, you gotta figure out who is who. Hope this helps!
- Real Estate Agent · Southington, CT · Member since 2008 · 5k+ posts · 3k+ votes4y
Well when you make it harder to evict people, the people who haven't been paying rent stay where they are and the people who are good tenants only move if they have to because the rents on the open market are much higher than they are paying. So they stay.
So now that leaves only the people who have to move are looking to rent right now, and they need a place to live so they get squeezed. Leads to landlords getting better quality tenants in units they may not have been able to a couple years ago.
Also, who would take a chance on a so so tenant right now when the local, state and feds have shown they can take away any consequences for not paying rent in a moments notice and as a landlord you have no recourse? All you can do is screen harder the next time which is what you are seeing.
Originally posted by @Nathan Gesner:
That's a pretty nice apartment for a D-class neighborhood.
Thanks Nathan, it is, but it is. I recently fixed a roof leak from a stray bullet (that took forever to find). The stairwells are always dirty and the tenants don't clean them (I would, I couldn't stand it). There is constant dumping and litter outside through-out the neighborhood. But the building is next to a grocery store and the inside looks pretty good. I bought it from a 95 year old lady that owned it 60 years. She bought it in the 1956; it was built around 1930. I still won't buy in that neighborhood again even though it stays rented to good tenants (even if they won't clean the stairs they have to use). I have 3 girls in there with Master's degrees now. Constant litter drives me nuts. At least the city finally closed down the homeless tent city they left open down the street for over 2 years.
I think at least partly the employment situation is waaaaaaay better than it was even a few years back. Three of my the applicants work for amazon which just opened last year making 16-18/hour. Plus all the STNAs (state certified nursing assistants) are making way more money than they use to in the last couple years. I don't own anything in North Hill (but I would buy there). I own 13 units up the hill in Chapel Hill which were built in the nineties that always rent like hotcakes. I"ve never had anything sit for a month; were you managing the property or was it under management? I wonder if you didn't have a property management company issue.
- Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes4y
I hear you, Jill. I've been active for 19 years and still don't have connections or answers for my 20 year old son and his friends as to moving out and paying rent. They are good kids so thankfully we have room to keep them home.
Something people may be able to do is attend development impact hearings in your towns. There is still so much NIMBY (not in my backyard) as to building and density at the local level. Be the voice of open-mindedness and reason at those.
Unforutnatley I too am in the process of selling an affordable rental community. I can't relate to the high costs of everything, especially labor, materials, utilities (water and sewer here are insane yet still rising) and above all, market rents that make me feel bad charging.
The regulatory environment in my area has many compassionate landlords selling. We had some of the longest and most tenant-protected covid moratoriums in the country. My future investments will be in assets nobody sleeps in.
- Real Estate Agent · Sisters, OR · Member since 2014 · 1k+ posts · 1k+ votes4y
Originally posted by @Steve Vaughan:
Come on Dad hook up some cosign action!
- Rental Property Investor · Red Bank, NJ · Member since 2017 · 1k+ posts · 1k+ votes4y
Each week I do a survey of my market it goes up. I am really astounded by a few of the same realtors that continue to set these high ceilings and sit on them for weeks.
They make me more money then they make their clients or bosses!
- 4yBruce WoodruffPro MemberContractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
@Nathan Gesner has a great perspective. This housing thing is cyclical. My dad was born in a tent. People used to move to where the jobs and housing were plentiful, nowadays everyone feels entitled and want to live where they want and work the job they got their degree in.
I would say the whole 'affordable housing crisis' thing is BS. It may be true that in 'City A' one cannot get a job or find housing, but a thousand miles away there are plenty of jobs and lots of available housing. That is not a 'housing crisis', sorry.
"I had 2 people with long term jobs submit applications both saying their buildings were recently sold and they'll be homeless if they can't find anything in a month"
People with long-term jobs who may soon be homeless....? Nah....move until you find a place, they're out there....
Just my .02....... - Real Estate Agent · Nashville, TN · Member since 2015 · 2k+ posts · 2k+ votes4y
I believe we are in an actual housing crisis right now. A full on housing crisis.
The biggest issue has been supply....due to new construction shortages.
In my market, home prices have gone up as high as 35% in ONE year. That has priced a ton of people out of the market, and not to mention that rent prices are going to follow shortly....
Wages and salaries will be the last to catch up too so people are going to be hurting for affordable housing for a long time to come....
I recently rented a vacated unit that the market rent had risen $1K in the last 3 years.
Until this year I would feel bad with providing tenants full market rate increases when market rent increased hundreds of dollars. What has changed? The risk of regulations that prohibit rent increases and eviction moratoriums. CA has passed statewide rent control. My market had the toughest COVID eviction moratorium in the country. I fear regulation that would rent control even on tenant turnover. This all leads to the necessity to keep the rent near market rate. For my tenants the prospect of rent control regulation and eviction moratoriums is leading to significantly higher rents this year, and likely the next few years, than they would have paid. Many of our tenants are getting 10% rent increases (approaching $400/month increase on our higher rent units).
I gave out some large rent increases and only one tenant gave notice. This reflects that the tenants recognize what is happening in the rental market and the challenges to find quality rental housing. It is shocking how prices have risen, but if you realize that the average property value has increased nearly $200K in the last year in my market and that there is new risks (eviction moratorium, rent control, etc.) it should not be surprising.
Affordable housing in my market is almost a unicorn find.
- Rental Property Investor · Chicago, IL · Member since 2021 · 32 posts · 32 votes4y
This is an area that more companies moving to Work From Home is fixing. As my career industry shifts to full WFH and knowing I could do that until I retire, I am now considering that I can live much further out from a city and get 2-3x ROV with my SFH.
With full WFH, as long as I have Internet, instead of spending $700k in Chicago, I can go purchase 50 acres of land and live in a mansion on the property in the middle of several states.
- Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes4y
Quote from @Jill F.:
I just listed an apartment on Friday. It's in a "D" neighborhood. It's my first turnover in over 3 years (39 months) in these buildings (2 side-by-side quads). I had **13** solid, completed applications (not just vague inquiries).
This is a clean, very basic apartment...
https://www.zillow.com/homedet...
I feel really bad for people looking now around here... I had 2 people with long term jobs submit applications both saying their buildings were recently sold and they'll be homeless if they can't find anything in a month or so. both said they've submitted many, many applications and heard crickets. It's been a while but I sure didn't have this kind of response when I last rented one of these apartments. In addition to actual applications I had many, many inquiries from people that sound so desperate . It's really heartbreaking.
Same in my market. Landlords are selling single family homes. People are commenting in Facebook groups that they are about to become homeless and can't find a place to rent. New apartment buildings are being leased before completion.
I have a vacancy coming in a beautiful home in an A class neighborhood and I think I can get $400-500 dollars a month more than a year ago. That is 25% increase.
Government spent two years treating landlords like crap and this is why people are getting out. Landlords are sick of being demonized. New landlords are buying at a higher cost basis and need to increase rents just to cover costs.
- Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes4y
Quote from @Luka Milicevic:
I believe we are in an actual housing crisis right now. A full on housing crisis.
The biggest issue has been supply....due to new construction shortages.
In my market, home prices have gone up as high as 35% in ONE year. That has priced a ton of people out of the market, and not to mention that rent prices are going to follow shortly....
Wages and salaries will be the last to catch up too so people are going to be hurting for affordable housing for a long time to come....
I assume you're referring to Nashville. Average rent: $1,600. Average income, $70,000. The average rent is less than 30% of the average income, which is affordable.
I just looked for rentals under $1,400 and there were over 100 available. That doesn't include rentals that aren't listed online. Two people working a waitress/waiter job could afford $1,400 a month. And if they're willing to work 50-60 hours a week, they could easily afford more than that.
I agree with @Bruce Woodruff that there are too many people thinking the world should never change unless they want it to. Sometimes, you have to move somewhere housing is more affordable or work is more available.
The DIY Landlord Book4.7247 Reviews - Member since 2021 · 98 posts · 53 votes4y
The challenge is everything is going up and wages are not keeping up. Rents have increased quicker then wages. Then you mix in gentrification and affordable housing is becoming more and more thin. I agree that people can improve their situation, but it is tough with the type of increase that have happened in the last few years. I own a home. My taxes increased 20% YoY. It is the highest level that my county bylaws allow. Granted I live in one of the fastest growing counties in the US (Denton County, TX). The prices have increased to reflect that as well. This will leave people behind. It is sad.
- Real Estate Agent · Shoreham, NY · Member since 2016 · 96 posts · 44 votes4y
On Long Island the tenants can afford rent working at a fast food restaurant. We are at $1800 for a 1 bed, $ 2250 for two beds , $2900 for a three bedroom. The NY Governor announced the eviction moratorium will end as planned on Dec 15th. Housing is in shortage now as you have folks who haven’t paid rent so inventory is very low. Sales and rentals prices are high. Landlords are also selling to cash in as NY also has changed many of the rental laws in favor of the tenants. I’ve thought about selling, but decided to Stay in the game. I have a vacancy coming up in May with the fear of not knowing the tenants who have played the system during Covid. Avoiding these folks are my largest concern.
- South Holland, IL · Member since 2017 · 376 posts · 432 votes4y
@Jill F.
I agree with @Jay Hinrichs . There is no affordable housing crisis at least in the Midwest. There is a shortage of $250K homes that sell for $150K. There are PLENTY of affordable decent rentals and homes, lower income buyers just believe it’s “beneath” them to live there. So they’ve opted to overspend on rentals and homes which cramp their ability to save and KEEP those homes. In my experience, buyers and renters who earn middle and lower middle class incomes expect luxury living on their marginal incomes. I operate rentals in mainly lower C and C Class areas. The showings I give to prospective tenants who “should” rent from me (based on their incomes) NEVER rent from me. Social media and HGTV has warped perceptions of how far your 50K a year takes you.
- 4yBruce WoodruffPro MemberContractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
Originally posted by @Eric Morel:
The challenge is everything is going up and wages are not keeping up. Rents have increased quicker then wages.
Wages never keep up with high inflation....let alone hyper-inflation....
Originally posted by @Jill F.:
I just listed an apartment on Friday. It's in a "D" neighborhood. It's my first turnover in over 3 years (39 months) in these buildings (2 side-by-side quads). I had **13** solid, completed applications (not just vague inquiries).
This is a clean, very basic apartment...
https://www.zillow.com/homedet...
I feel really bad for people looking now around here... I had 2 people with long term jobs submit applications both saying their buildings were recently sold and they'll be homeless if they can't find anything in a month or so. both said they've submitted many, many applications and heard crickets. It's been a while but I sure didn't have this kind of response when I last rented one of these apartments. In addition to actual applications I had many, many inquiries from people that sound so desperate . It's really heartbreaking.
Many cities have created this problem for themselves. A neighborhood Facebook group I'm in is having a big to-do over trying to get our councilperson to oppose new high density development. In a city. NIMBYism can never defeat the immutable law of supply and demand. Construction costs are high at is. That gets worse when you add a 2 year permitting and council approval process.
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