Posted by: phillipsre | September 16, 2014

Making Sense of Rental Rates

apt_for_rentThe rental market in Seattle is a growing industry. This is great news for developers building new apartment complexes, tenants looking for new places to live and owners that are getting their properties into the rental market. With the increased supply will also increase demand and with the newer buildings popping up, the rental rate will begin to increase to stay competitive. This article from the Seattle Times, written by Sean Martin with the Rental Housing Association of Washington, explains why the rental rate may increase and how local political candidates are prioritizing housing growth and affordability in the city. As mentioned in the article, “the other issue involved with new construction is that it typically rents at a premium of more than 40 percent above existing housing stock. This can skew the data when looking at how much rents have increased.”  This is the nature of business and a sign of the times in our market, but people looking for lower rental rates should rest assured that there will still be affordable housing, there will still be plenty of homes and apartments that are not new construction that will remain affordable, while still staying competitive.

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