Rental Market: Vacancy Down, Rent Prices Up

Demand for rental properties in King and Snohomish counties does not seem to be waning, despite average rents having risen 10 percent over the year. Apartment vacancy rates are at their lowest point in at least 10 years, at 4.05 percent, according to Apartment Insights Washington, though in some neighborhoods the rate is much higher. Ballard has the highest vacancy rate in the area at 17.3 percent (though this is down from a vacancy rate of 45 percent for the first quarter of 2015), and as of June 4 there were 600 apartment units under construction in the neighborhood and 450 more permitted, according to the Puget Sound Business Journal. In the King/Snohomish county area as a whole, there are 22,948 rental units under construction, up 42 percent from last year. Predictably, average rent in the King/Snohomish region is highest in Seattle, at $2,226 per month, followed closely by Bellevue, where the average is $2,000 per month. For the region as a whole, the average rent is up to $1,408.

If you are looking for a rental home in the Seattle area, contact your local real estate agent today!

Average Rent In Seattle Area Nearing $1,300 Per Month

98121After rising by 6.8 percent in the first quarter of this year, the average rent for an apartment in the Seattle area is continuing to rise as the year progresses, and the average now stands at $1,284 per month, according to a report in The Seattle Times. Since this statistic includes not just the city of Seattle but the surrounding cities, as well, there is quite a bit of variation in the average price when broken down by city, and even by neighborhood. The average in West Bellevue tops the list at $1,912 per month, while the average in SeaTac is more than $1,000 cheaper at $901 per month. In the city of Seattle alone, the average is $1,445. There is also a significant difference in rental costs depending on when the unit was built. For units built after 2010, the average is $1,754, whereas the average for a building built in the 1970’s is $1,019.

Among Seattle neighborhoods, rents in Ballard have gone up by the highest percentage, having risen 12.3 percent over the quarter to $1,628. For a neighborhood that has historically been home to mostly single-family homes, the apartment-building boom is significantly changing the residential face of the neighborhood, and while rents are high, Ballard also posted the city’s highest vacancy rate of 8.6 percent in the second quarter. There are many units still under construction, and when they are complete apartment inventory will have quadrupled over the past six years. To go along with that, vacancy rates are expected to rise to 18 percent.

If you are interested in renting in the Seattle area, contact your local real estate agent today.

 

 

 

Seattle Rental Rates Continue to Rise

Over the past year, there has been more new construction for apartments than over the past two decades, but rental rates in Seattle seem to be unaffected. According to the Seattle Times, vacancy rates continues to remain low, and while the price retention doesn’t sit well with renters, the nearly 2,000 new apartments that filled quickly over the past year indicates a healthy rental market. Over the past few months the average rental rate rose to $1,190, and the vacancy rate in the city is set at 4.41%. Many are concerned that the overbuilding will affect rates, as a percentage of current renters are expected to become home buyers in the near future, but that didn’t seem to happen this year.

Photo credit: www.third-estate.com

Photo credit: www.third-estate.com

Many attribute this to the influx of employment opportunities in the city with Amazon Microsoft, and Google, setting the bar higher for an increase in employee housing, thus creating a greater need in Seattle’s rental market. The influx of new employees, combined with homes being taken off the market and put up for lease, has created a very healthy, thriving market, and it will be interesting to see where this next year takes us. For more information on Seattle rentals, contact your local real estate agent today.

How is Your Cost of Rent Determined?

There are several factors that come into play when owners, landlords, and housing boards decide how much to rent a particular space for. In Seattle it can be assumed that since inventory is low, the cost of rent is rising and will continue to do so for the next few years. The Seattle Transit Blog has an interesting take on how your rental price is determined, and why that price was decided maybe even before your apartment was built!

According to Seattle Transit, construction costs, and debt accumulated are taken into consideration, as well as what the market will hold when determining the set rent. They suggest that the cost of rent is decided before the unit is finished being built. There is a supply and demand factor in the housing price decision. If inventory is low, rent is high, but if there is a surge in construction maybe the quality of housing will decrease and renters will wind up eating extra costs. Seattle Transit suggests that if all goes well in the construction process, and attracts prospective tenants, we should be seeing an increase in supply and lower costs in housing production. Read the full story to gain a better understand of all the bells and whistles that come into play when deciding that final rental rate. Understanding that there are many factors at hand and wrapping your head around what those factors are should open the flood gates for new ideas to cut costs for renters and builders alike.

Seattle Rental Rates Continue to Rise Through 2012

Are you currently a renter who believes you’re paying too much for your rental house on Queen Anne, your Ballard apartment, or your West Seattle condo? If you are not then consider yourself lucky because the cost of rent continues to rise as vacancies around Seattle continue to shrink. While rates are predicted to continue steadily rising through 2012, next year real estate analysts say the trend may come to a halt. 

Rent is continuing to rise in the King and Snohomish counties and according to the Seattle Times, several experts suggest these rates will continue to rise until next year, when a surge of current projects are scheduled to be completed, creating more vacancies around the city. According to the Apartment Insights Washington, the average monthly cost of rent in Seattle is currently $1,094, up 1.7% from last quarter. Our region is in the largest apartment construction boom we’ve seen in over two decades, and should expect rental rates to drop, or at least begin to rise more modestly after this year. For more information, please visit the Seattle Times.

Seattle Rental Rates Continue to Rise Through 2012

Are you currently a renter who believes you’re paying too much for your rental house on Queen Anne, your Ballard apartment, or your West Seattle condo? If you are not then consider yourself lucky because the cost of rent continues to rise as vacancies around Seattle continue to shrink. While rates are predicted to continue steadily rising through 2012, next year real estate analysts say the trend may come to a halt. 

Rent is continuing to rise in the King and Snohomish counties and according to the Seattle Times, several experts suggest these rates will continue to rise until next year, when a surge of current projects are scheduled to be completed, creating more vacancies around the city. According to the Apartment Insights Washington, the average monthly cost of rent in Seattle is currently $1,094, up 1.7% from last quarter. Our region is in the largest apartment construction boom we’ve seen in over two decades, and should expect rental rates to drop, or at least begin to rise more modestly after this year. For more information, please visit the Seattle Times.

Seattle Rental Scene Heats Up

Seattle ApartmentAccording 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.