According to Bloomberg.com, U.S. apartment and rental vacancies have decreased over the last few months, which have allowed landlords and apartment buildings to increase rental rates. There have been a large amount of families relocating to Seattle with companies such as Amazon, Fred Hutchinson, local hospitals, and other companies going through hiring frenzies. Many of these families are in no rush to purchase since they aren’t sure which Seattle neighborhoods they would prefer to live in and most have the luxury of temporary housing. Larger companies tend to offer temporary housing which allows tenants the time to learn more about which neighborhoods they would prefer to live in and at the same time leads to a decrease in Seattle apartment vacancies. Owners of single family rental homes throughout the Puget Sound area have benefited from those tenants looking for the perfect home for their family and preferring a house over an apartment. These owners benefit due to a lack of inventory and a large amount of families searching, which consequently has allowed landlords to obtain higher rental rates. To read more about a decrease in vacancies and an increase in the Seattle rental rates, please read the article here.
I typically blog about Luxury Seattle rentals, but I came across this article in the Seattle Times today regarding a local landlord, Hugh Sisley, that I found very interesting. Hugh Sisley and his wife Martha had $600,000 in fines upheld recently in an appellate court for several city housing code violations. The city of Seattle is aggressively enforcing building and housing codes. To read this article, please click on the Seattle Times.
It’s great news if you are landlord and not if you are in the market for a Seattle rental. The article, Hot Apartment Market Settles in For a While, in the Seattle Times gives the details about what is going on with the Seattle apartment market. Basically with less people owning their homes, whether they are scared to buy (debatable per the article), they lost their home, or if they are just moving here and do not want to commit until the experience Seattle, the demand is going up for Seattle apartments. And that applies to the luxury rental market as well. For example, The Bravern, the Bellevue 440+ unit building that was converted from condos to apartments, is already half full even though not all the units were on the market until this past October. In addition, the supply of rentals is increasing slowly since there are not as many apartments being built as there were in the past. According to the graphs on the article (see picture 3 of 3) vacancy in King county apartments is down to 4.3% from 6.8% two years ago. In the same time period, average rent has gone from $1,015 to $1,045.
To get more details, read the article by clicking the link above. It is interesting article if you are looking for a Seattle apartment or if you are a landlord.