I actually miss my 700 some odd square feet one bedroom apartment in Campbell. It was the greatest but I had Peanut there and the Eastern Morning Sun would come thru the Bathroom window and make me feel special especially because Peanut would knowingly bang his tail against a hallway ( 15 ft long but its a hallway ) door and wake me up in the morning too.
Now I do appreciate my abode but its got a lot of to be wanton for. Like 700 square feet versus 150 square feet and there is no Peanut here to wake me up in the morning.
So I venture out and look and see all these great new places being built like the Mosaic Apartments but a slight problem is well $2200 problem a monthly kind of problem that well that is as bad as dealing with an HOA like AXIS plus whatever the expenses could be to maintain your sanity, I mean I think those airplanes are WAY too close and I like airplanes.
One reason I did not want Facebook to make its Headquarters here in the Bay area is exactly because of the housing issue. Realtors now use such information ( ie how many Millionaires are in the neighborhood ) to base their property value on and including the numerous headquarters of some of the Millionaire Maker Companies make the real estate prices climb and not just for them but for the lowly dishwasher at the newest faux family style eatery that opened up.
So higher real estate prices are good, No the higher the real estate prices means property values and TAXES goes up. Next, densely built new properties mean that lesser dense properties can charge more because I mean we are talking about space here.
I scour the internet and the streets for an abode and that 700 square foot apartment in Campbell it is now going for over $1500 a month.
Still you say didn't you just pass a wage increase to make the minimum hourly rate $10. Okay I will bite, how much does a person making $10 an hour have to spend on housing
Let's for argument sake say this person works a full time job so 80 hours at $10 equals $800 gross pay every two weeks so their monthly gross is $1600.
Again for argument sake the person is single and deduction is one so the tax rate ( forgoing the fiscalclifffiasco -say that 3x fast ) is 18.5% and there is a $20 per paycheck deduction for health insurance so that $800 check becomes $652 really fast then the actual monthly total is $1304 a month.
Technically only 50% of the monthly net income should go to rent but with the need for say privacy our single person decides to take the dive and get an apartment on their own.
What is there for them ...well
For $985 they can find a place in Santa Clara that is Pet Friendly. Great Problem solved right !
Wrong that $985 is not including the deposit or first month rent which in most cases are one in the same so $1970 is needed just to get into said place.
Stop and do the math after rent is taken out of the after taxes part that leaves $319 I haven't mentioned the Internet or PG&E bill. Plus did you notice that nearly 75% of the persons monthly income is going to their rent. What about Food, transportation, entertainment, medical expenses, dental?
Yes, the other option is to rent a room so let's go back to Craigslist and see what we can find for someone who can spend roughly $700 a month there is certainly choices but for the sake of proving a point I am going to let you do the search and get back to me on what you find. Not to mention the numerous requirements just to find a said room there are cooking hours, there are laundry hours, and you need to do stuff like clean up a lot. I personally love the ones that ask me to take care of their children while they work nights um yeah I don't have children for a reason.
Now I am using the hourly wage as an example and the location could really be anywhere but in my recent travels I have found it is expensive to live here so don't bust my butt just because I take Public Transit that is only $70 a month.
Oh and that one bedroom I had in Campbell the rent was $850 in 2004.
Tell me inflation hasn't increased and I will sell you a beautiful three bedroom located on the Farallon Islands.