The Seattle PI reported last week on the downturn in the local real estate market, and how that’s driving the rental market.
Vacancy rates, which are at 4.6% right now, are dropping and are predicted to continue to drop throughout the rest of the year. While vacancy rates are falling, rental rates are rising. Rates have risen about 2.5% recently and will continue to grow.
Not only will rental rates go up, but fewer concessions will be offered to entice renters.
The rental market is being driven by simple supply and demand, with the number of apartment buildings unable to match the increasing stream of renters. The supply of units will likely not match the demand for at least another, as apartment projects beginning construction now will take that long to be completed.