Rents rising rapidly in Santa Monica
Santa Monica, CA -- (SBWIRE) -- 10/05/2015 -- The news for the rental market in Santa Monica is getting grimmer for people looking for a place to live. Rising rents mean people who can buy a home should, say a pair of Realtors in San Mo.
Andy Agle, the Director of Housing and Economic Development for Santa Monica, said the city is losing some 400 to 500 rental units a year. That's a net loss. What property is left is rented and what becomes available goes up in price. That's despite the city's Affordable Housing Production Program.
"Now is the time to buy a house in Santa Monica. It lets you do tow things at once," said Kristine Halverson, one of the sisters at Berkshire Hathaway Home Services. "One, you quit putting money in someone else's pocket so they can build equity in the building where you live. Two, you build equity in the place where you live."
Economists say that buying a home is one of the wisest decisions a family can make.
"If you are moving here to stay, buying a house is the right thing to do," Kim Halverson said. "It lets you become an integral part of the community and you eliminate an ever-rising rent. Your house payment is fixed. Rent is going to go up regularly. Buy a house."
The demand for rental units is rising as well. When demand goes up and supply drops or stays the same, prices will rise according to the laws of economics. Santa Monica is experiencing that right now.
A recent check of several apartment websites showed rents for 2 bedrooms as high as $6,000 a month. That's for less than 1,200 square feet.
"That is a lot of money to spend on an apartment. You could get a bigger home for less money with a mortgage rate of 4.5 percent," Kristine said.
"Even a home for $1 million, a 4.5 percent is going to be about the same one of those small apartments. You get the added benefit of your payment not going up, with a fixed rate, and you can capitalize on rising home values," Kim said.
For more information about the Santa Monica housing and rental market, visit kimandkristine.tv or call 310-737-8173.
Kim and Kristine Halverson
3130 Wilshire Blvd. Suite 100
Santa Monica, CA 90403