Yesterday, we found out that some more close friends of ours--also with a young child at home--were told that their rent was going to go up. A lot. Two years ago they moved into a two-bedroom house just before their son was born. It's a nice little place in a fairly non-descript San Francisco neighborhood. Until a few years ago, the area was mainly home to working class folks and their families. They have been paying $3,600 a month in rent, which I already thought was pretty insane. But the landlord has told them they have to cough up more, much much more, if they want to stay.
How much? 10 percent? 20 percent? Hell no, the landlord want $1,600 A MONTH more. This is happening all over. We are already making plans to leave, because the Twitter IPO is about to create another 1,000 millionaires. The median house price in Oakland is up 72 percent in the last YEAR (about $15,000 per month). There is an ocean of money out there, and a lot of people are drowning in it.