Puget Sound Business Journal recently published a report about the current state of King and Pierce County’s Rental Market. Below is a summary of what’s happening now!
The rate of rent started increasing again in January in the Seattle-Bellevue-Everett market after five months of decline. Overall, rent prices in Seattle are still going up, but at a slower pace, a recent report by a national company that tracks rental markets found. It’s a different story in the Tacoma-Lakewood market, where the rent growth rate has really gone up.
Year-over-year, the rate of rent growth in Seattle was 7.3% in January. That was down from December’s 7.9% annual increase, but higher than the 7% rise that was logged in January 2015. This January, the average apartment rent was $1,649.
Tacoma’s year-over-year rate of rent growth was 9% in January, up a bit from December’s 8.8%t increase but way ahead of the 5.5% increase from January 2015. This January, the average apartment rent was $1,171.
Increasing Demand the Cause of Rising Rates
A likely reason Tacoma’s rental rates are climbing is increasing demand. As people get priced out of Seattle, they’re moving to lower-cost markets. Apartment investors are responding by buying suburban properties.
Strong job growth has driven up rent prices in Seattle and Tacoma. At the beginning of December, Seattle-based Conway Pedersen said job growth for 2015 would be 3.2%.
But tenants may see some rental relief because the region’s red-hot job growth is forecast to cool off, according to the December issue of Conway Pedersen’s Puget Sound Economic Forecaster. It called for job growth of 2.3 percent this year, and 1.5 percent in 2017.
Are you looking to lease out your home or need help finding a new rental home? Contact us at 206-315-4628 today!