Sunday, October 21, 2012

Newport Beach, California Rents Jump 7.6%

Here's another reason the housing market is picking up steam. Rents are climbing and investors can make many purchases that are cash flow positive.

Jonathan Lansner and Phil Collins report from Orange County, California:

Newport Beach, home to the Orange County’s priciest apartment complexes, just got way pricier. 
The city had the county’s biggest rent hike in the 12-month period ending last summer, with rent jumping by $156 a month, according to apartment tracker RealFacts.
The average rent for a unit there was $2,212 a month during the summer quarter, up 7.6 percent from $2,056 a month in the summer of 2011. 
It’s the only city in the county where the typical apartment rents for at least two grand a month — more than the typical Orange County mortgage payment.

 Here's the full Orange County story:

CityAvg. Rent1 yr ch
Newport Beach$2,212$156
Placentia$1,526$120
Huntington Beach$1,543$99
Costa Mesa$1,677$93
Aliso Viejo$1,702$89
Cypress$1,413$74
Fullerton$1,380$61
Anaheim$1,365$60
Fountain Valley$1,433$60
Tustin$1,561$59
Mission Viejo$1,490$59
Dana Point$1,880$58
Santa Ana$1,463$53
Rancho Santa Margarita$1,467$52
Irvine$1,933$51
Lake Forest$1,516$48
Laguna Niguel$1,607$42
Orange$1,619$35
Buena Park$1,299$34
La Habra$1,308$34
Westminster$1,338$28
Garden Grove$1,336$26
Brea$1,418$17
Stanton$1,246$10

5 comments:

  1. Who said those Bernanke dollars weren't producing inflation? Oh, yeah--Paul Krugman.

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  2. Mmm...

    "Here's another reason the housing market is picking up steam. Rents are climbing and investors can make many purchases that are cash flow positive."

    ...Yeeeeahh, right. Aren't rents (like house prices) a function of the prevailing wage?

    This seems like similar logic supporting the idea that "HFT provides liquidity". XD

    ReplyDelete
    Replies
    1. Houses cannot be purchased at the prevailing wage, but investors with access to Fiat Federal Reserve cash can.

      Delete
  3. I hardly thinks this counts as any kind of inflation or housing boom - Orange County is one of the priciest areas in the US...if anything this just shows that the upper classes have hardly been hit the economic downtown.

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  4. Dale, I'm afraid you missed my point.

    As new supply comes on the market, it will lower the cost of rentals.

    Also, the rental market will eventually be constrained by wages. If people can't afford a bigger place, they take a smaller place. If they can't afford to get their own place, they get a roommate.

    Wages must rise for housing to recover. Easy money ain't gonna do it.

    Just like HFT churn isn't liquidity, a temporary increase in rents is not an indication of recovery, or a trend.

    ReplyDelete