Rentals Archives - Green Escrow Services, Inc

Bay Area rents are down … or up …or …

September 14, 2020 By Geoffrey Disch Leave a Comment

Depending on where you look Bay Area rents continue to decline, while a few cities are up slightly. According to a report by Zumper, 27 of 31 Bay Area cities showed a decrease in rental prices. By and large, more expensive areas saw decreases while the increases were in less-expensive cities.

San Francisco saw median 2-bedroom rentals dip below $3000 for the first time in six years. On the other hand, Livermore (plus 9.7 percent), Concord (plus 3.4 percent), and Vallejo (plus 4.3 percent) all saw increases.

Analysts predict both trends will continue in the foreseeable future.

NAR calls for help for struggling landlords

September 8, 2020 By Geoffrey Disch Leave a Comment

While much has been made about the extension of the eviction moratorium, the National Association of Realtors (NAR) is calling for emergency rental assistance for property owners who are facing their own financial crisis.

The NAR points out that landlords must still make payments on their property but will have no source of income under the moratorium extension. The vast majority of these property owners are mom-and-pop investors who are in danger of losing their properties.

Leaving the City

August 31, 2020 By Geoffrey Disch Leave a Comment

As has been mentioned, one of the major effects on the national real estate market of the pandemic – and, to some extent, social unrest – is that many city dwellers are looking to move to the suburbs. The New York Times recently reported that one listing in the suburbs near New York had 97 showings and 24 offers!

In fact, New York City leads with the number of homeowners looking elsewhere, followed by Chicago, Washington, DC, St. Louis, and Miami.

Analysts warn that, while city living is particularly attractive right now, panic buying is not a good idea. Moreover, trying to sell your city home during the current conditions will certainly not bring top dollar.

Renters moving to the suburbs

August 6, 2020 By Geoffrey Disch Leave a Comment

According to Zillow, while home sales have improved since the spring, rentals in urban areas have slowed suggesting that many are choosing to live in the suburbs. Certainly, remote working makes the suburbs more attractive for some as does the fact that city dwellers are unable to enjoy many of the amenities of urban living.

So far, Sacramento and San Francisco, along with Dallas-Forth Worth and the New York metro area are seeing the largest split between urban and suburban rent growth.

Bay Area renters the most stressed in the country

July 23, 2020 By Geoffrey Disch Leave a Comment

The current pandemic and economic upheaval combined with the ongoing housing crisis has created a situation for all bay Area renters, with low to moderate-income families suffering the most.

To afford a median-priced, two-bedroom apartment a Bay Area worker needs to earn $43 an hour in Alameda and Contra Costa counties, $57 an hour in Santa Clara County, and $64 an hour in San Francisco, and Marin and San Mateo counties. Conversely, a minimum-wage worker ($13/hr) would need to work 114 hours per week just to meet ends meet.

It is estimated that 45 percent of California residents are renters.

Up to 23 million renters at risk of eviction by September

July 20, 2020 By Geoffrey Disch Leave a Comment

As the number of unemployment claims keeps rising – 44 million since mid-March – the Aspen Institute estimates that 23 million renters could be evicted by September.

Evictions are expected to increase dramatically in the coming months as financial support and prohibitions on evictions come to an end.

Black and Latinx renters are likely to be at higher risk according to analysts.

Bay Area rents (mostly) lower

July 16, 2020 By Geoffrey Disch Leave a Comment

As the economy shifts, many Bay Area communities – particularly those near tech centers – are seeing rents dropping. San Francisco (11.8 percent), Mountain View (15.1 percent), Menlo Park (13.5 percent), Cupertino (15.7 percent), and San Jose (8 percent) all saw significant decreases on one-bedroom rentals.

On the other hand, communities a bit farther out saw modest increases – Oakland (4.5 percent), Walnut Creek (1.3 percent), and Concord (2.3 percent).

As more employees are able to work remotely and commuting is no longer a hugely significant factor, analysts expect more migration to the suburbs.

Bay Area renters still paying

June 15, 2020 By Geoffrey Disch Leave a Comment

Despite all that’s going on in the Bay Area and the world – the coronavirus, high unemployment, social unrest – approximately 90 percent of Bay Area renters made their June payments or at least a partial payment. With nearly 5 million Californians out of work, stimulus payments, supplemental unemployment benefits and simply prioritizing rent seem to have gone a long way.

However, with some federal benefits due to end in July, there is considerable concern over what’s ahead. Currently, California lawmakers are considering allowing landlords to receive tax credits in exchange for forgiving rent. Tenants would have years to repay the debt and some may be eligible for debt forgiveness.

While many cities and counties have enacted eviction moratoriums to protect the most vulnerable, many of these measures are scheduled to end soon.

Rental challenges for people of color

February 20, 2020 By Geoffrey Disch Leave a Comment

A new analysis by Zillow reports that people of color are more likely to be charged an application fee than white prospective renters regardless of factors such as income etc.

In very tight housing markets such as the Bay Area, this can become very problematic as application fees are typically not returned and can drive up the costs for many of finding a suitable place to live.

A few states such as Massachusetts have banned application fees altogether in an effort to level the playing field for all.

Rents are up but evictions are down

December 30, 2019 By Geoffrey Disch Leave a Comment

The San Francisco Chroniclereports that even as rents continue to rise in California – 23 percent from 2011 to 2018 – evictions have dropped nearly 40 percent in the same time period. Closer to the Bay Area, rents in San Mateo County have increased 55 percent since 2010 but the number of eviction lawsuits dropped by 50 percent.

Eviction researchers are not sure why but point to a number of possible reasons. Renters who move out due to a rent increase or a “cash for keys” arrangement are not counted as evictions. Landlords often employ a “no-fault” notice that tenancy will end in two months. Moreover, many landlords avoid eviction notices due to the potential cost, particularly if the renter requests a jury trial which can cost from $10,000 to $15,000, with the potential that the landlord may lose the case.

Finally, landlords now do a much better job at screening applicants so the possibility of the need for an eviction notice is greatly decreased from the start.