When Donna Jones and her husband looked to rent a home in Northern Virginia in February, they often received the same response: Sorry, but someone else offered to pay more rent.
“We didn’t even know you could do that,” Ms. Jones said.
An increasing number of white-collar professionals—some of whom recently sold homes—are reluctant to buy because of record-high home prices, rising mortgage rates and limited supply. They are renting instead, helping to drive a frenzy for leased properties of all kinds, and helping fuel the trend of offering above asking rents, real-estate agents said.
I’ve always thought that Google engineer living in the box truck outside of company headquarters was the smartest guy in Silicon Valley. See link:
I’ve always thought that Google engineer living in the box truck outside of company headquarters was the smartest guy in Silicon Valley. See link:
I’m surprised the city would let him get away with that. Some cities start hyperventilating and sending “ordinance enforcement” around if you have someone living in a motor home in your driveway.
I may have mentioned my conversation with a member of the condo board several weeks ago. The buildings are 40 years old, and we are looking at a $40,000/unit CAPEX budget over the next few years. I checked the rent on a 2 bedroom apartment in the complex across the street: $1500/mo. Another complex down the street: $1600/mo. That is so far above what I pay in condo fees, I would pay that $40k in three years, just from the extra rent expense.
The buildings are 40 years old, and we are looking at a $40,000/unit CAPEX budget over the next few years
Many people don’t understand that about home ownership. Over 30 to 40 years, you’re going to replace almost everything above the foundation (wood, wiring, plumbing, etc.)
And if you live in an area like Houston TX with poor quality soils, you’ll likely be replacing the foundation, too.
Many people don’t understand that about home ownership. Over 30 to 40 years, you’re going to replace almost everything above the foundation (wood, wiring, plumbing, etc.)
Link to your assertation?
Plenty of homes 30-40 years old with original wiring, plumbing and especially wall studs and floor joists (wood above foundation).
Our last home was about 90 years old. I think the electrical boxes and some of the wiring had been replaced, and the roof. The rest of it was original. The previous owners had partially finished the basement. We added a basement bathtub and heater and replaced the chimney liner.
Our current house is about 50 years old. We’ve upgraded the electricity, rebuilt the balcony, and added solar panels and a ground-floor shower, and added tile to the basement floor. As far as I know, the rest is original, although those cheap hollow doors need some repair.
Appliances always need replacing, of course. We had a water heater absolutely implode.
But yeah, owning a home costs a lot more than the mortgage payments. It’s always something.
Many people don’t understand that about home ownership. Over 30 to 40 years, you’re going to replace almost everything above the foundation (wood, wiring, plumbing, etc.)
Not if you build out of brick like the Third Piggy. Still, there is a lot of maintenance. My Caracas condo is part of an over 60 year old building. We have replaced a lot of the plumbing, elevators, roofing, telephone cables, water pumps, and the pneumatic pressure tank. In my apartment I replaced part of the flooring, the windows, the electric outlets and switches, and installed a new circuit breaker to accommodate new equipment. But relatively speaking the condo fees have been rather moderate.
Plenty of homes 30-40 years old with original wiring, plumbing and especially wall studs and floor joists (wood above foundation).
True. But many also get remodeled in a variety ways–which means a wide range of changes to the actual structure of the home. Original owners may make far fewer such major changes, but new buyers do so far more frequently because the house needs those changes for them–so they do it.
Most common remodeling are kitchens and bathrooms. Soon, the need for better electrical service within the house (to the garage for EVs and perhaps the basement for battery backup source for temporary home power when the electricity goes out due to storms, etc). Maybe solar panels, maybe not–depends on the siting of the house and availability of good direct sunlight much of the year).
<<Many people don’t understand that about home ownership. Over 30 to 40 years, you’re going to replace almost everything above the foundation (wood, wiring, plumbing, etc.)>>
Link to your assertation?
Plenty of homes 30-40 years old with original wiring, plumbing and especially wall studs and floor joists (wood above foundation).
It’s certainly possible to build a high quality home, but that’s not the kind of product the American home building industry typically delivers. You can increase Executive Compensation by using low quality materials and less expensive, less skilled labor.
If you live in a dry, temperate climate like Utah, your home is going to need less maintenance and replacement than one on the Florida Coast or the Pacific Northwest.
Here’s a guide to maintenance costs. 1.5% per year in Utah. 2.5% or more on the Florida coast. 40 x 2.5% = 100%. That means that you’re going to basically be rebuilding your home over 40 years.
1.5% per year in Utah. 2.5% or more on the Florida coast. 40 x 2.5% = 100%. That means that you’re going to basically be rebuilding your home over 40 years.
It means no such thing. If you repaint some walls, for example, you haven’t rebuilt you’ve just done maintenance…you didn’t tear down the walls, replace all the wiring, 2x4s and drywall. Maybe you wanted a different color or maybe you took poor care of something. And if you did the work yourself it might cost $50 to repaint a room and if you paid someone it might cost 10x that…but you didn’t “rebuild” the room.
Note: are your percentage numbers based on the initial purchase price? Because doing some routine maintenance today might seem like a lot compared to the price paid 40 years ago to purchase.
Soon, the need for better electrical service within the house (to the garage for EVs and perhaps the basement for battery backup source for temporary home power when the electricity goes out due to storms, etc). Maybe solar panels, maybe not–depends on the siting of the house and availability of good direct sunlight much of the year).
It is a misnomer to assert that better electric service is required to charge an EV. Because of the way EVs are charged, the vast majority of single-family homes in the USA can handle it without any electric service upgrades. That’s because the EV charges at night while the other high current appliances are off. Basically, all you need to do, if you don’t have one already, is to add a 240V outlet somewhere near where the car will be parked at night. It costs between $0 (if you already have one) and $1000 in most cases. There are rare cases where the parking spot is too far from the electric source, and then it’ll cost a little more to add a trench and conduit to extend power to that location.
As far as backup systems, they range in price VERY widely, from $300 for a small gasoline generator that you connect extension wires manually. To whole-home backup systems with a 600 lb or 1200 lb buried gas canister for $50k. Soon there will also be ways to connect an EV to the home to be used as a backup power source when electricity goes out. I think I’ve seen that they cost $1000 to $3000.
Solar panels in most places are still not economical. The upfront cost is just too high in most places. But there are some places where it’s VERY economical and even profitable some months. While looking for homes in Southern CA with a family member, many of the houses touted having solar as an advantage, and a bunch of them had a year’s worth of electric bills in the kitchen on display. One that I glanced at appeared to show that their ANNUAL cost for electricity was $9.37 or something absurd like that.
It is a misnomer to assert that better electric service is required to charge an EV. Because of the way EVs are charged, the vast majority of single-family homes in the USA can handle it without any electric service upgrades.
Actually, I am well aware of the problem because many of the houses/properties I used to look at NEEDED major electrical upgrades at the time (early 1980s). Pretty much ALL of them would have needed a new electrical panel and new wiring throughout because most of it was sub-100A service. Great for the 1930s and 1940s, but a total problem when you needed minimum 100A (I wanted 200A minimum) AND I needed a huge number of outlets (3-prong/grounded) in most rooms. Yeah, this was back in the 1980s. Think about what the number of outlets needed TODAY would be–and where they would need to be located.
intercst:“Here’s a guide to maintenance costs. 1.5% per year in Utah. 2.5% or more on the Florida coast. 40 x 2.5% = 100%. That means that you’re going to basically be rebuilding your home over 40 years.”
Yeah, things wear out. Appliances. Hot water heaters. Heating/cooling systems. Sprinkler systems. Not counting lawn mowers…
Like cars… any car.
You’re also going to be living in it for 40 years. Carpets wear out. Luckily my fridge is 32 years old and still going. Dishwasher replaced once in 30 years. Stove/oven original. Second blender. Most of furniture 30 years old. HOt water heater twice replaced.
Someday will replace the metal frame thermopane windows.
Second home alarm system in 32 years
Painted the 1/4 house that is wood sided. Twice. rest brick.
Pool pump once. Filter once.
Replaced fence around yard once. Had some repairs along the way.
Note: are your percentage numbers based on the initial purchase price? Because doing some routine maintenance today might seem like a lot compared to the price paid 40 years ago to purchase.
For a person who complains a lot of innumeracy, it’s surprising intercst would use 40 x 2.5% in his argument.
My mother’s house was built for $17k in 1957. She could possibly exceed her purchase cost with a new roof today.
Actually, I am well aware of the problem because many of the houses/properties I used to look at NEEDED major electrical upgrades at the time (early 1980s). Pretty much ALL of them would have needed a new electrical panel and new wiring throughout because most of it was sub-100A service. Great for the 1930s and 1940s, but a total problem when you needed minimum 100A (I wanted 200A minimum) AND I needed a huge number of outlets (3-prong/grounded) in most rooms. Yeah, this was back in the 1980s. Think about what the number of outlets needed TODAY would be–and where they would need to be located.
Heck, I only did a renovation with zero added square footage and no upgrade from my existing 200A service, and had an entirely new panel added because I wanted more breakers.
But for an EV, you only need to add a single outlet somewhere near the place where the car will be parked. And even if you only have 100A service, it’ll work fine. A level 2 charger works very well at 32A, so you simply charge overnight while you’re not using your stove and dryer. If you don’t have 2 phase (240V) service, then you begin to have issues with an EV charger.
Note: are your percentage numbers based on the initial purchase price? Because doing some routine maintenance today might seem like a lot compared to the price paid 40 years ago to purchase.
For a person who complains a lot of innumeracy, it’s surprising intercst would use 40 x 2.5% in his argument.
My mother’s house was built for $17k in 1957. She could possibly exceed her purchase cost with a new roof today.
Talk about innumeracy – you’re making my argument for me.
People often ignore maintenance when considering the cost of a single-family home. But the odds are very good that you’re going to spend the purchase price of your home on maintenance and replacement costs over 40 years in most parts of the country.
Homes tend to last longer in the arid parts of the West, but few people want to live there.
“People often ignore maintenance when considering the cost of a single-family home. But the odds are very good that you’re going to spend the purchase price of your home on maintenance and replacement costs over 40 years in most parts of the country.”
So what? That house bought for $17K in the 1950s is probably worth $400,000 today. So you spend $17K in repairs…probably a lot more at 1.5 to 2% a year.
If you live in apartment, you pay all that maintenance anyway…through rent. The landlord isn’t going to be ‘absorbing’ those costs without charging tenants an appropriate amount. Plus, if you want reasonable rent in a lot of places , you’ll be living in 20-30-40 year old rental housing. Some good, some not so great.
But for an EV, you only need to add a single outlet somewhere near the place where the car will be parked. And even if you only have 100A service, it’ll work fine. A level 2 charger works very well at 32A, so you simply charge overnight while you’re not using your stove and dryer. If you don’t have 2 phase (240V) service, then you begin to have issues with an EV charger.
I assume you don’t want to use the same circuit as the stove and dryer. For some people, it won’t be so simple if there isn’t any more room in the panel for another breaker.
If you live in apartment, you pay all that maintenance anyway…through rent. The landlord isn’t going to be ‘absorbing’ those costs without charging tenants an appropriate amount. Plus, if you want reasonable rent in a lot of places , you’ll be living in 20-30-40 year old rental housing. Some good, some not so great.
I’m glad you brought that up. There are major economies of scale if you live in a large, professionally-managed apartment complex with a dedicated maintenance staff. They can do stuff a lot cheaper than you calling out an individual tradesman to your single family home.
Saw a video last week on why Germans prefer to rent rather than buy a home. Apparently the Gov’t closely regulates rental housing quality and there are strong tenant protection laws. You’d be hard pressed to duplicate that in a single-family home for there same price.
People often ignore maintenance when considering the cost of a single-family home. But the odds are very good that you’re going to spend the purchase price of your home on maintenance and replacement costs over 40 years in most parts of the country.
I’m only making your argument if you want to base everything on purchase price. Why not use current price? Or put everything in a certain year dollars such as 1982 dollars for your 40 year house or in today’s dollars?
Also as someone already mentioned, don’t included non-necessary renovations. Painting a room is usually decorative and not necessary. Replacing a vinyl floor with hardwood or tile is often not necessary. It is your choice of words that you need to replace almost everything above the foundation is not accurate since most of the structure of the house is not changed.
intercst:“There are major economies of scale if you live in a large, professionally-managed apartment complex with a dedicated maintenance staff. They can do stuff a lot cheaper than you calling out an individual tradesman to your single family home.”
True but I’d bet renters for the most part don’t give a hoot about being careful, working carpets to death, slamming doors and windows, banging into and taking care of cabinets, and anything else they might if they owned the property. Landlords will be replacing carpets a lot sooner, and in some places having to paint all walls between renters (by code) even if a year rental. The don’t worry about landscaping.
If you have a couple kids and two parents…apartments are not the ideal place to be…