Riverside Rental Prices

[David]

Hello, as a Riverside expat who still works and plays in the area, I'm curious about what the rental prices are like these days. It's been about 4 years since I've lived in the area full time.

To give you an idea of what I paid in the past, a 1 bedroom was had in the mid 2000's for about 550 a month

A two bedroom in 2008 on Myra st cost me about 720 a month. Another two bedroom town-home on Downing near Lee was around 895 a  month in 2010. All were fairly spacious.

The reason I bring this up is I've been hearing a lot of talk in the various Riverside haunts about rent prices increasingly drastically over the past few years and this rental listing on tradionsjax seems to prove it:

http://traditionsjax.com/mls/2055-HERSCHEL-ST-3-JACKSONVILLE-FL-32204-mls_797677/?SavedSearch=20140327174232174000000000&PropertyType=D&pg=1&My=office&OrderBy=-ListPrice&p=y&n=y

1500 a month for two bedroom (from my old landlord on Myra actually) And yes, I know other larger cities are way more expensive, and that's something I don't envy. Seems like the area continues to grow in popularity and inventory is lower than ever.

Is Riverside getting "Brooklynized" finally?

I know there are still some deals to be had, but I'm curious as to what everyone else's experience is with the rentals in the area.

[fsquid]

you are paying for that great location, plus that unit looks well maintained.

[David]

Oh I know, just seems like quiet a spike over the past few years. Even as recent as 2012 it seems like a unit like that would go for under 1,000 easily. From what i'm seeing there's a large swing between rental prices for equivalent apartments. Some of the landlords are keeping their prices stuck in 2005 whereas others are wising up and charging more because they know people will pay it.

That same landlord in the traditionsjax listing charged about 720 a month for 1000 sq ft two bedroom on Myra st years ago. It was newly renovated as well.  it's interesting to see the area take off like it has. It's definitely way more lively now than even the few short years ago that I lived there.

[ProjectMaximus]

Yes it has spiked. And Murray Hill is reaping the benefits...seems to be approx what Riverside was about a decade ago.

[thelakelander]

That unit looks pretty nice. I'm sure you can still find cheaper similar sized properties in the area. They just won't be as well maintained.

[lowlyplanner]

I've showed that unit before (back around 2010) - it is very nicely renovated and in an incredible location - less than a block from Mossfire, Black Sheep, etc.  I believe it was renting for around $1,200 per month 5 years ago.

High rents make it possible for new housing and commercial spaces to be build and old ones renovated...  And also hopefully lead to improvements in other similar but cheaper areas like Murray Hill and Springfield.

[David]

I've showed that unit before (back around 2010) - it is very nicely renovated and in an incredible location - less than a block from Mossfire, Black Sheep, etc.  I believe it was renting for around $1,200 per month 5 years ago.

High rents make it possible for new housing and commercial spaces to be build and old ones renovated...  And also hopefully lead to improvements in other similar but cheaper areas like Murray Hill and Springfield.

Ah, yes. This one's within a stone's throw of 5 points, I do recall apartments in that area being a little more pricey.  So 1500 for a two bedroom still isn't the norm for a decent apartment in other areas of Riverside it sounds like.  The ones I mentioned earlier were a good walk from 5 points, but i'm sure even those are pulling in 300 or more a month now.

Just curious about the current Riverside rental market, supply and demand etc. (And kicking myself for not buying an investment property 4 years ago when prices were low!)

[InnerCityPressure]

Just curious about the current Riverside rental market, supply and demand etc. (And kicking myself for not buying an investment property 4 years ago when prices were low!)

I bought one 5 years ago and it's killing

Max is right.  If you don't want to miss the next wave, buy one in Murray Hill.  We've renovated two houses there in the past four months and they both rented very quickly with a fantastic ROI.

[simms3]

Sounds like rents are essentially moving to market, as market is defined in much of the Sunbelt, for premium location, views, and/or space.  This rental seems to have 2 of the 3 ingredients for higher rents relative to market (location and space), and at ~$1.50psf is still considered top of the market for Jacksonville.  The only places you'll find these $1.50psf rents, or slightly slightly higher, are new apartments in Brooklyn (but not even all of those), Strand, new luxury apartments right next to SJTC, and right around 5 Points (as this one is).

Put in perspective, premium intown rentals in Charlotte, Nashville, and Atlanta are all around $2.50psf now.  Austin has exceeded $3psf to be downtown.  Even the tippy top rents of Birmingham, AL for the best locations are a bit above those found in Jax, so perhaps relative to local incomes or what locals are used to, the relatively few "hip", walkable, or active areas in town near amenities and restaurants and jobs (i.e. Riverside 5 Points, beaches, and SJTC) are seeing high rents.

The rent increases are catching everyone off guard.  I saw Jax listed near the top of cities recently in a ranking of YoY rent increases.  The actual rents listed were by far the lowest, but the rent increases were up there behind only a few cities like Oakland, SF, Denver, etc.  Cost of living increases are catching up with all cities.  It's probably part of the reason why more companies in NYC and SF aren't actually packing their bags...there's even more of a quality of life imbalance in places like Jacksonville where yea, wages are super low, but quality of life features are severely lacking and all of a sudden in 2-3 years time, relative to itself, it has gotten expensive to live there.

You can't go from $900 avg rent to $1200 avg rent in 2-3 years, no pay increases, and no new amazing features or qualities in the city and justify snagging a ton of employees/companies going through the same thing on a different scale in cities that already have everything everyone wants.

[MusicMan]

Very limited inventory plus strong demand equals high rent. Two people sharing it splits out to a good deal for both. They pay $750 each plus utilities/cable/ etc...........  Works out to be a good deal since you can leave your car parked for much of your "down time." And it's even better if you work in the neighborhood.   

I have listed and sold several multi-family buildings in Riverside-Avondale, many of them to repeat customers. 

I have one coming up soon 2 blocks from Kickbacks. Feel free to PM me if you are a serious Buyer prospect.

[ProjectMaximus]

I have one coming up soon 2 blocks from Kickbacks. Feel free to PM me if you are a serious Buyer prospect.

Um, when were you going to tell me about it? 

[MusicMan]

I just did

[finehoe]

This is a nationwide phenomenon.

It's not your imagination. Rent really is too high.

The cost of renting a home in the U.S. has risen to its least affordable levels ever, taking up a record proportion of income in most major cities, according to a study from property website Zillow.

"Rents are crazy right now," Dr. Svenja Gudell, chief economist at Zillow, said in a statement. "Unaffordable rents are making it hard for people to save for a down payment and retirement."

http://www.cnbc.com/2015/08/16/rents-rise-to-crazy-levels-zillow.html

[simms3]

That it is.  Very few cities are escaping the wrath as FHA limits are out of whack, young people can't take on new mortgages and lenders are still not so willing to lend, home construction prices are out of whack and have raised the price of new homes, and many cities in this country have taken a turn for the better/worse depending on how you look at it as more people have realized they cannot and will not live 20-30-40 minutes outside of a city only to sit in traffic, become obese, and have fewer things to do around them, which leaves living in the city in much higher demand...with nowhere to move to within the city due to lack of construction, etc.

Jax is becoming expensive in some small parts, relative to itself.  But here's what I'm dealing with (and I've been contemplating a move to be closer to subways, my friends, and the places I go out to at night...$600-800/mo on ride/cab services).

http://sf.curbed.com/archives/2015/10/09/the_median_rent_for_an_sf_twobedroom_hits_5000month.php

$3,620 is median 1 BR rent in the city now.  And that is no exaggeration.  2 BR tops $5K.

In individual neighborhoods, it gets extreme.  To live right downtown a 1 BR is a median of $4,270.  In my neighborhood it's between $3,650 and $3,850.  As evidence of this, the 1 BR next to mine (I live in a 2) just rented for $3,700.  I live in a 5-floor walk-up apartment building with 16 units and no amenities.

Let's say the median 1 BR in Riverside-5 Points is ~$1200.  My salary is not necessarily 3x that of a salary of someone living in 5 Points or wanting to live there.  Not to mention everything else in my life is anywhere from 1.5-10x as expensive as what the equivalent would cost in 5 Points (I guess going back to the "men's cut" fiasco that everyone makes fun of me for...I found a guy who will cut my hair for $55, which is pretty much in line with what the apparent average is for a men's cut here...so that is down from where I was before).

Anyway, I digress.  I've long ago given up on homeownership prospects.  Wish I had some money to pick up some stuff in Atlanta or Miami or Denver.  I do have some friends who got lucky with timing or are able to do this even now.  Pretty jealous.  My last friend who bought a place in SF had his French father assist him financially with the purchase of a $1.3M one bedroom loft in the mission.  Here you're competing with cash buyers for this kind of stuff, so even if you can get a mortgage, doesn't guarantee you the property.  And are we still going to go up, or will this potential bubble burst and how badly?

Same general storyline across the country nowadays at different scales.  I would think Jax is still affordable for a smaller city compared to some really really in demand places like Austin, or even Salt Lake City these days.

I think the thing to worry about in a Jax is the fact that there is not much volatility or demand generation (if you are an investor).  Great if you want to own a home for 10+ years to live in, though!

My friend bought a condo in Atlanta for ~$250K a few years back.  Now worth at least $350K, maybe even closer to $400K.  I think that's the level of "pop" Jax is still missing, which is a good thing for many many people trying to get in, but maybe not so entertaining for others view real estate more as an investment and bought something in Jax hoping for that very storyline.  Are there any cases out there like that?  Miami is even more extreme.  Similar condo at Miami's trough would have cost $150K ($0.50 on dollar) and could be worth $450+K by now.

[finehoe]

simms, have you watched this?  http://www.hbo.com/documentaries/san-francisco-2-0

Thoughts?