2023 Real Estate Observations (Boston: activity, farm, toddler)

[charolastra00]

I'm trying to find an apartment for June and it's really wild out there. In the past two weeks I've reached out to 30-40 apartments. I only got tours with 5 of them over this long weekend. 1 was already rented by the time I got there (and the listing neglected to mention the 2nd bedroom meant there was no living/dining room), another (the one I really want) had 75 inquiries in 2 days and I was one of 5 people who got a showing. I hear back today or tomorrow if I got it... but those odds aren't good.

I went into this thinking I could get a 2 bedroom inside 95 (mostly looking in Waltham, Quincy near the red line, Medford, and Malden) for under $2800 all-in (including parking and pet fees) but now it's looking closer to $3200. Big complexes have the most availability, but they go up every day and nail you with all kinds of fees. For a dog and a cat, we're looking at $100 additional a month minimum. I toured another complex where parking was $100/mo for the first car and $200/mo for the second - and that was outside in a lot! There are apartments listed on places like Zillow, Apartments.com, Craigslist, and various realty company sites, but they either don't take pets, don't respond back, or are gone under 24 hours. I'm to the point where I'm offering to take places site-unseen if I know the area well!

It's rough out there.

[matrix5k]

Originally Posted by AtkinsonDan

First off, it is a coop, not a condo. Let's look at all the possible elements that may make up this $1,028 monthly fee.

• Real estate taxes on the unit
• All utilities excluding electric and cable for the unit
• Snow removal
• Landscaping
• Trash removal
• Common area lighting
• Common area heat
• Common area cleaning
• Municipal inspection fees
• Master insurance
• Management fee
• Reserves for major repairs to the building and parking lot

Plus we do not know the history of the building. They could have had a near catastrophic problem with the building that required remediation and is being paid off after the fact.

It is very possible for a HOA fee to get that high. It will certainly be a rare occurrence but not unrealistic.

A normal HOA includes all of that except taxes and heat.

[AtkinsonDan]

Originally Posted by matrix5k

A normal HOA includes all of that except taxes and heat.

Unless someone has lived in the complex for decades, there is no way to know exactly what has led up to a HOA fee of $1,028. Decades of deferred maintenance could be a major contributing factor. Don't underestimate the cumulative influence of cheap owners that fight HOA fee increases.

[redplum33]

Originally Posted by charolastra00

It's rough out there.

If I were in your shoes, I'd consider increasing my housing budget. I'd justify it by thinking to myself "Would I be happy if my income was $15k less than it currently is?" And if the answer is yes, why not add $1k a month to the housing budget and make things much easier.

I say this because you've said you're making good money now.

[matrix5k]

Originally Posted by AtkinsonDan

Unless someone has lived in the complex for decades, there is no way to know exactly what has led up to a HOA fee of $1,028. Decades of deferred maintenance could be a major contributing factor. Don't underestimate the cumulative influence of cheap owners that fight HOA fee increases.

So don't you agree that $1028 is absurd? The new owner has to pay for decades of deferred fees.

[yesmaybe]

Originally Posted by matrix5k

So don't you agree that $1028 is absurd? The new owner has to pay for decades of deferred fees.

That's why it's 250k instead of 400 something.

[charolastra00]

Originally Posted by redplum33

If I were in your shoes, I'd consider increasing my housing budget. I'd justify it by thinking to myself "Would I be happy if my income was $15k less than it currently is?" And if the answer is yes, why not add $1k a month to the housing budget and make things much easier.

I say this because you've said you're making good money now.

I have increased my budget, but that eats away at savings. It's why I can make good money but be nowhere near affording a house. It's also more than half of my monthly take-home currently, though I'm lucky that I can cut my ESPP contributions (but, again, that impacts my ability to buy).

Forget about having kids at these rent prices.

[newenglandgal123]

Originally Posted by charolastra00

I'm trying to find an apartment for June and it's really wild out there. In the past two weeks I've reached out to 30-40 apartments. I only got tours with 5 of them over this long weekend. 1 was already rented by the time I got there (and the listing neglected to mention the 2nd bedroom meant there was no living/dining room), another (the one I really want) had 75 inquiries in 2 days and I was one of 5 people who got a showing. I hear back today or tomorrow if I got it... but those odds aren't good.

I went into this thinking I could get a 2 bedroom inside 95 (mostly looking in Waltham, Quincy near the red line, Medford, and Malden) for under $2800 all-in (including parking and pet fees) but now it's looking closer to $3200. Big complexes have the most availability, but they go up every day and nail you with all kinds of fees. For a dog and a cat, we're looking at $100 additional a month minimum. I toured another complex where parking was $100/mo for the first car and $200/mo for the second - and that was outside in a lot! There are apartments listed on places like Zillow, Apartments.com, Craigslist, and various realty company sites, but they either don't take pets, don't respond back, or are gone under 24 hours. I'm to the point where I'm offering to take places site-unseen if I know the area well!

It's rough out there.

So $3200 a month is like you might as well buy a $500K property somewhere and at least you're building equity for yourself. I get that it may be the going rate, but those rental prices are absurd.

[AtkinsonDan]

Originally Posted by matrix5k

So don't you agree that $1028 is absurd? The new owner has to pay for decades of deferred fees.

If it is the result decades of deferred maintenance then that is simply the reality of the situation, so no not absurd. Actions of those in the past have consequences for those in the future.

[charolastra00]

Originally Posted by newenglandgal123

So $3200 a month is like you might as well buy a $500K property somewhere and at least you're building equity for yourself. I get that it may be the going rate, but those rental prices are absurd.

With current interest rates at 10% down, that's only about 400K. Since buying means I'd be locked in for a few years, I'd need to be both close enough to work and at least have 3 bedrooms because if I'm going to have kids, I'll need to do it during that time period. There's nothing at that price point within an hour of work. Obviously lots of people do it smaller, but with two people who work partially from home and a 165 lb dog, a 2 bedroom with a baby or toddler really isn't feasible.


Not to mention if I wanted to extend my lease at this point to wait for a closing even if I bought something tomorrow, they'd charge $5K a month for a short term lease.