In This Unpredictable Market, Is Renting a Better Option Than Buying?

I must say I am a bit perplexed as to why there are over 19 leases in Sierra Madre, not including 2 rooms for rent.  I counted the listings on the MLS and Craigslist, and didn’t even include Westside Rentals.  It seems there is a “For Rent” sign in just about every corner.  I would say most of the vacancies are due to renters taking advantage of the down market and buying homes, however, the market does not support the increase in sales to justify the vacancies.  

Where is everyone going? 

I did recently learn of a tenant who relocated due to the high cost of living in the area and 2 other couples, which I assisted in locating a lease in Sierra Madre, about a year ago, followed their jobs out of state.  It is possible, the cost of living and, most recent increase in water cost is causing some to rethink the “plusses” of staying in Sierra Madre.

Through my research on the web, I was inundated by data, advice, predictions, and explanations about what the market will do, and the house-price-to-rent ratio.  With so much data, advice, and opinions about renting vs. buying, it is no wonder potential buyers are staying by the wayside trying to gauge what the market will do next.

Supposedly, we may be due for another dip in prices and in some cases, it is still more advantageous to rent. However, sometimes the merits of renting vs. buying are not easily distinguishable and then you have to look most closely at your lifestyle and short and long term plans. Those considerations are easy to list out and a quick Google search or a look at articles by the likes of David Leonardt of the NY Times, “Rent or Buy, A Matter of Lifestyle” breaks it down very simply.

The one thing I can say for sure about Sierra Madre is that it requires a certain commitment to stay – renting or owning.  The rents have stayed continually high similarly to certain distinct areas of Pasadena while rents had plunged low in many nearby areas.  The house prices to have not gone down as deeply and the decision to relocate to or from Sierra Madre seems to be a fairly substantial one in people’s lives. 

Why?  

It is a commitment and perhaps the little extra that is required to come here makes for a resident that has a little more at stake in their community. For those that are trying to decide whether to leave or stay then, I say – think about why you are here, what you get out of being part of this community or what you would lose by relocating.  If you still have a choice (that is you haven’t been priced out by rising water costs, job loss or other change in circumstances), then maybe there are substantial reasons to justify renting where you can’t afford to buy or staying in a smaller home but in a community you love.

Yes, it may be that those have us who live in areas that have not dipped as low as others, have greater depths to plummet up ahead.   But sometimes the old adage of timing and the best time to buy or rent is when “you are ready” may be more relevant then any clear maneuvering trying to buy, sell or rent at the exact right moment.

As for those who either own properties that have recently become vacant when renters left or those who have recently left the area, I’d love to hear from you as to what caused this “large inventory” of rentals on the market or what factors played into your decision to move.

- Photos by Ivonne Durant