The Coachella Valley of Southern California has been hurt tremendously by the real estate and credit crisis meltdown. Now a rental crisis is coming to cities such as Palm Springs, Palm Desert, Cathedral City, Rancho Mirage, Desert Hot Springs, Indian Wells, Indio, Coachella, Thermal, Yucca Valley, Joshua Tree, Twentynine Palms and Salton City which have all seen construction of new homes virtually grind to a halt after years of over-building.
It doesn’t take a Palm Desert real estate lawyer or a Palm Springs Realtor to know there is a rental crisis coming to these cities at the same time as real estate agents find themselves with few homes anyone wants to buy. Just in early October 2008, the area’s biggest Realtor in the valley announced it was closing its doors and letting all of it’s agents go to other real estate agencies. Rental homes in some areas such as Salton Sea, however, are difficult for renters to find.
Just when you thought you had heard enough about the economic crisis, the credit crisis, the real estate crisis, the foreclosure crisis or the construction crisis, add one more as fallout from the others. A rental crisis is coming to cities in California, just as sure as the heat comes to the desert every summer.
The number of households looking to rent is going up every month as foreclosures take away their homes. While homes sit empty either not for rent or at rents higher than these households can afford, the demand for cheap apartments is on the rise.
What makes this a crisis, is that construction of affordable rental property is declining significantly, rents are going up, unemployment is going up, and those who are employed are seeing their real income fall. That, adds up to a crisis.
Have you seen a tent city in your town? You may have one or more, but they simply may not be on the roads you travel.
As rents go higher and renters get poorer, despite the demand for cheap rentals, landlords are likely to be faced with potential renters that either fail credit checks or whose credit scores are far lower than they would like.
Estimates of when the real estate crisis will end are now being extended farther and farther out. When it was estimated that the real estate market in California would not recover until 2009, people thought such estimates were crazy. Now experts are predicting a turn around won’t occur until 2011 and no one is calling these experts crazy anymore.
This situation may have one silver lining. If demand for rental properties continue, and land values continue to decline, this may be the next area of growth for California’s construction industry.
But now, just when you thought you had seen the worst of the real estate crisis, it seems to have become worse again with the stock market crash. Whatever month or year people thought the real estate market would recover, we can probably push that date another six months to a year farther out.
If you have a landlord-tenant, real estate, mortgage or finance issue, our experienced attorneys can serve as your Palm Springs Landlord-Tenant Lawyer or your real estate attorney anywhere in Southern California. We have nearly thirty years of experience and have represented clients from San Diego to Orange County, from Newport Beach and Laguna Beach to San Luis Obispo, from Anaheim and Irvine to Carlsbad and La Jolla, from Ontario to Victorville, and from Temecula and Yorba Linda to Palm Springs, Palm Desert, Indian Wells and throughout the Coachella Valley.