August 19th, 2010
The flood of next generation renters could mark the beginning of a new form of the American Dream.
The economic recession, paired with more stringent loan requirements and a smaller population of people in the age demographic of home owners, is serving to help expand a burgeoning rental market.
This switch from home owning to renting represents a subtle shift in the manifestation of the American Dream.
Inman News reports:
“Most renters who plan to become homeowners say it will be at least two years before they make the leap, and more than one out of four renters say they’ll never buy a home, according to an online survey by Harris Interactive”.
And why would they want to leave the rental market?
Owning a home requires stability and ties up cash. There are maintenance costs on top of monthly payments and ultimately (as many people are unfortunately finding out) there is no guarantee that a home will increase in value.
Furthermore, while the reasons for staying in the rental market increase, the ability to leave is actually declining.
An article by Gene Epstein for Barron’s (a member of the Wall Street Journal Digital Network) states,
“According to the Federal Housing Finance Agency, the share of new mortgages requiring a down payment of less than a 10th of the house price was 8% last year, down from 29% in 2007.” (emphasis added)
For current renters looking to buy this can represent a major hurdle to overcome. Epstein goes on to further explain that last year the average down payment on mortgages exceeded 25%.
The housing market will also likely continue to decline in part due simply to a smaller demographic of individuals in the age range of home buyers. In the next five years there will be more 20-to-34-year-olds than 35-to-49-year-olds, which will likely continue to spur on the growing rental market while simultaneously slowing the already flagging owning market.
Policymakers will likely consider these factors as they reevaluate the $230 billion spent on government subsidies for homeowners spent last year in relation to the $60 billion in tax breaks and federal spending in the rental market.
A boom in the housing market now would not represent the balanced economic growth it did in the fifties, as the things that now fill homes across America are largely imported from foreign markets. Growth in the housing market does not translate to growth in other economic sectors as it once would have.
Perhaps this shift from owning to renting, slow though it may be, does not represent the dramatic swing away from the American Dream that it appears to.
It may represent the beginning of the end of the idealized white-picket-fence-in-the-suburbs for some Americans, but surely that is not the only manifestation of the American Dream.
After all, the American Dream is ultimately to live a more prosperous life than our parents and to provide for our children a better life than we were given.
The gradual move from owning to renting may just be the 21st century manifestation of the American Dream, as renting could allow for greater prosperity in our time than owning could.
Posted in real estate news | No Comments »
August 18th, 2010
Olive 8 will be the next Seattle condo building to hit the auction block, and the prices look incredible.
The event will happen on Sunday September 19th, and starting bids on 1 bedrooms are as low as $160,000! There are 34 units up for grabs out of the 228-unit project.
Amenities at the sustainable condo-hotel include a pool, fitness center, yoga studio, room service, housekeeping services, 24-hour concierge, a dog run and more.
There's more information available at their Auction Info Office, open every day from 11AM to 6PM at the property in unit 2702.
Click here to see a full list of the units available with pricing!
Posted in Condo Auctions, real estate news | 1 Comment »
July 15th, 2010
The Wall Street Journal is reporting that apartment vacancy rates fell just a bit in the 2nd quarter of this year nation-wide -- down to 7.8%:
The national apartment vacancy rate stood at 7.8% at the end of June, according to Reis Inc., a New York real-estate research firm. That was down from the 8% vacancy rate during the first quarter, which was the highest vacancy rate in 30 years.
It's just a slight increase, but it's good news for property owners. Why is this happening right now? One of the key reasons is that we're not adding as many new apartments as we used to:
The lack of financing for new apartment construction over the past two years has constrained the pipeline of new supply that should hit the market in the next two years. The apartment sector, which added between 100,000 and 150,000 units annually over the past decade, is on pace to deliver just 60,000 units in 2011 and 2012, according to Marcus & Millichap.
As our job market keeps getting better, it shouldn't be too long before rental rates start climbing back up!
Posted in Rental Market News | No Comments »
July 12th, 2010
Here's just a handful of the new properties we have just listed for rent --you can of course view plenty more by clicking Current Listings above.
Capitol Hill Townhome -- 3 bed/3.5 bath townhome for $2395 per month
Trio Condo -- Belltown 1 bed + den for $1695
Maple Leaf Charmer -- Remodeled 1 bedroom with washer & dryer for $995
Posted in New Listings | No Comments »
July 12th, 2010
Linkroll time -- here's a list of our blogs and sites that you should know about:
Posted in Rental Market News | No Comments »
July 7th, 2010
The Puget Sound Business Journal is reporting that Gramor Development Washington has bought 11,800SF in the 4300 block of Linden Ave -- eight townhomes -- for $2.5 million:
“The lender and guarantor were looking for an exit strategy and we were able to negotiate terms and close this transaction in a handful of days,” said Kelly Baker, acquisitions manager for Gramor Development, in a statement.
The project is located just a few blocks from our offices, so we'll be watching it with interest. Read more at bizjournals.com.
Fremont town homes sell for $2.5M
Puget Sound Business Journal (Seattle)
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Gramor Development photo
Gramor Development paid $2.52 million for this townhome project in Fremont.
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A Seattle buyer of distressed properties said it’s purchased another: an eight-unit, town home complex in Seattle’s Fremont neighborhood for $2.5 million.
Gramor Development Washington said it bought the 11,800-square-foot development in the 4300 block of Linden Avenue North from the project’s lender, Viking Bank, and the project’s developer and guarantor, Seattle Signature Homes.
“The lender and guarantor were looking for an exit strategy and we were able to negotiate terms and close this transaction in a handful of days,” said Kelly Baker, acquisitions manager for Gramor Development, in a statement.
In February, Gramor bought another distressed Seattle property — at the site of the former Twin Teepees restaurant in Seattle’s Green Lake neighborhood.
Tags: real estate news, sales, townhomes
Posted in real estate news | No Comments »
May 28th, 2010
The city of Seattle has adopted a proposal requiring inspections for every single rental unit in the city. Right now WMFHA is in the process of attempting to amend it. Here’s a summary of what will happen:
· Beginning April 1, 2012 all rental housing owners or operators will have to be licensed and to get that license the rental property must be inspected.
· The only rental housing that will be exempt will be: owner-occupied rental units; rental units owned or operated by a government unit of agency; rental units that receive federal funding and that are inspected as part of the funding program. If the property has more than 20 rental units, no more than 20% of the units need inspection up to a maximum of 50 units in each building.
· Inspectors will be required to certify that the building and units meet certain standards set for in the Seattle Housing Code and there are no conditions that impair or endanger the health or safety of the tenant.
This means that in two years time, every owner that we work with will need to have their property inspected and they will have to get a license. We’ll find out in the next couple of months whether the amendments get through.
We will keep you posted!
Posted in Rental Market News | No Comments »
March 15th, 2010
Here you’ll find up to date information about our rental market, condo and development news, ongoing politics that might effect landlords, and much more. We’d also love to hear feedback from YOU.
To see our current vacancies, click here. Thanks for reading and check back for more posts soon!
Posted in Uncategorized | No Comments »
