THE RISE AND FALL OF RENTAL RATES

That, on average, one-bedroom rental prices are down more than on other properties?  There are several reasons for this, starting with a larger inventory of one-bedroom rentals.  Demand is down because some tenants are moving out of one-bedrooms into two-bedrooms to save money; half of a two-bedroom is less expensive than all of a one-bedroom.  Others are moving out of one-bedrooms into two-bedrooms because they are working from home and want a separation between work and home or because there are two or more residents working from home and need separate work areas.

According to Zumper, rents for one-bedroom apartments in Seattle are down 17% year-over-year.  Two-bedroom apartments are down an overage of 11%.

While the rental market stayed strong through the summer, the impact of the pandemic has been increasingly felt this fall.  Some apartments are offering as much as twelve weeks of free rent.

The inventory of single-family home and condo rentals has also increased significantly.  There are currently 346 rentals advertised in Seattle on the NWMLS with an average DOM of 64.  In the period from 10/15/19 to 11/15/19, 111 properties rented in an average of 49 days.

Traditionally the rental market improves after the first of the year.  Whether that will be true this year, we just don’t know.

We are here to help you and your clients with all aspects of the rental market. Please contact us for further assistance!

Nothing found herein should be construed as an attempt to offer or render a legal opinion or otherwise engage in the practice of law. You should not rely solely on this information. We encourage our clients to work with a lawyer experienced in commercial and/or residential real estate matters as they can be complicated and confusing.