Yesterday, the Seattle Times published an article that sheds light on the Belltown and Greater Seattle rental market in the coming months. It suggested that Belltown apartment residents will see a stabilized rental market, with a possibility of lower rental rates.
Over the last several years since the recession, Belltown and Greater Seattle apartments have been steadily increasing in cost. In 2014, real estate and rental agencies expect the Belltown apartment market to stabilize.
This information comes from Apartment Insights Washington, a Seattle-based firm that partnered with RealData in Phoenix last November to survey nearly 1,200 apartment properties for the report. They found that although Bellevue has the most expensive rent for a one-bedroom apartment ($1,434 per month), the Belltown apartment market is within the most expensive sub-market of the Greater Seattle Region.
“Downtown Seattle — including Belltown, Denny Triangle and South Lake Union — is the priciest submarket, at $1,624,” the firm reported.
Seattle Curbed also got in on the discussion, noting that in 2013, King County renters saw rent rise 6.5%, with the average rent in Seattle at $1,371 per month.
However, while rents rose in the early three quarters of 2013, Apartment Insights Washington found that the average monthly rent in the Seattle apartment market dipped in the fourth quarter. Only by $5 per month, but that is a dip! Vacancy also rose up from 4.4 percent in the third quarter to 4.6 percent in the fourth, meaning properties will offer more concessions to potential renters in order to get their units leased.
“It’s a clear signal of the market softening,” said Tom Cain, who is a principal at Apartment Insights Washington. According to Cain, 2014 will offer more choices and the disappearance of rent hikes seen in 2013.
According to the Seattle Times, “The Seattle metro area is in the middle of the biggest apartment building boom in two decades. Robust job growth has pushed vacancy rates to historic lows, placing Seattle among the worst U.S. cities for recent rent increases.”
Look for a better Belltown apartment market in 2014!
Featured photo from SeattleTimes.com, credit Mark Nowlin. Source: American Insights Washington.