Seattle-area apartment rents may stabilize, even dip in 2014

Originally published January 1, 2014 at 8:08 PM | Page modified January 2, 2014 at 5:49 PM

Apartment rents jumped 6.5 percent during 2013 to $1,214 a month in King and Snohomish counties, but tenants should see market rents stay level or even decline this year, a new report suggests.

After climbing 3 percent in 2013s second quarter and 2.4 percent in the third, the average monthly rent in the Seattle metro market actually dipped in the fourth quarter by $5, according to Seattle-based Apartment Insights Washington, which tracks rents, vacancies and concessions in the Puget Sound region.

Meanwhile, the vacancy rate rose to 4.6 percent in the fourth quarter, up from 4.4 percent in the third quarter, and more properties offered fatter concessions, said Tom Cain, principal of the Seattle firm.

Its a clear signal of the market softening, Cain said. Renters in 2014 will have more choices, he said, and shouldnt expect the big hikes of recent quarters.

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.

The 6.5 percent growth in rent in 2013 was the highest annual increase since the last job boom. Average apartment rents jumped 8.6 percent in 2007 and 9.6 percent in 2006, Cain said.

The firm, which partners with Phoenix-based RealData, in November surveyed 1,173 apartment properties with at least 50 units in King and Snohomish counties.

Bellevue is the regions most expensive city for a one-bedroom apartment, with rent at $1,434 a month. But downtown Seattle including Belltown, Denny Triangle and South Lake Union is the priciest submarket, at $1,624, according to Apartment Insights.

Beyond downtown, Seattles most expensive neighborhoods for a one-bedroom apartment were Fremont/Wallingford ($1,514), Capitol Hill ($1,449) and First Hill ($1,421). The lowest rent was in North Seattle ($957).

Follow this link:
Seattle-area apartment rents may stabilize, even dip in 2014