{"id":285,"date":"2006-07-09T12:14:00","date_gmt":"2006-07-09T19:14:00","guid":{"rendered":"http:\/\/seattlebubble.com\/blog\/?p=285"},"modified":"2006-07-09T12:14:00","modified_gmt":"2006-07-09T19:14:00","slug":"rents-predicted-to-rise-still","status":"publish","type":"post","link":"https:\/\/seattlebubble.com\/blog\/2006\/07\/09\/rents-predicted-to-rise-still\/","title":{"rendered":"Rents Predicted To Rise… Still"},"content":{"rendered":"

A number of readers pointed out an article in yesterday’s Seattle Times about “multifamily housing” (apartments) that’s full of the usual pep-talk and rah-rah-speak<\/a> claiming that prices have nowhere to go but up, up, up, and isn’t that just wonderful<\/a>!<\/p>\n

With apartment vacancy rates declining and job growth increasing, real-estate investors are snapping up properties in anticipation of a three-year boom in the multifamily market around Seattle.<\/p>\n

Local investors are beefing up holdings, and out-of-state investors are buying large buildings, even as developers take more apartments off the rental market and convert them to condominiums.
…
Dupre + Scott Apartment Advisors, a research firm in Seattle, reports apartment vacancies were 4.6 percent as of April, down from 6.5 percent a year ago. This is the first time the rate has fallen below 5 percent since 2001, the firm said.<\/p>\n

Starting next spring, rates are predicted to dip below 4 percent and stay there through the end of 2008. Dupre + Scott expects rents will rise about 5.2 percent a year.<\/p>\n

Condo conversions play into the dipping vacancy rate, Bosl said.<\/p>\n

He cited Dupre + Scott data that indicate that in 2005, more apartments were converted to condos and taken off the rental market than new apartments were built and added to the market.<\/p>\n

“Seattle is a favorite of the investment community now,” said Peter Larsen, a principal with Paragon Real Estate Advisors in Seattle, a firm that sells buildings with 10 to 100 units and typically priced from $1 million to $12 million. “People’s expectation of rising rents is outpacing their fear of rising interest rates.”<\/p>\n

Larsen said mid-sized buildings his firm represents are selling faster, with some properties moving in only 30 days.<\/p><\/blockquote>\n

Of course, one thing this article doesn’t mention is how many condo conversion apartments have come back on the market as rentals as the “investors” try to turn a buck… That’s the kind of real investigative reporting I can only dream about in Seattle.<\/p>\n

However, even if the claims made in this article are 100% true, I would still be convinced that renting is by far the better deal right now. You can get a pretty darn nice apartment for $1,250 per month—far less than even most interest-only mortgages on condos around here. Even if rents go up 5%, you’re only looking at an increase of $62.50 per month, barely pushing you over the $1,300 mark, and still a far cry from the cost of a mortgage.<\/p>\n

So maybe mildly rents really is a win-win situation for everyone. Renters still pay far less than they would owning, and apartment owners turn a greater profit.<\/p>\n

(Jane Hodges, Seattle Times<\/a>, 07.08.2006<\/i>)<\/p>\n

Please read the rules<\/a> before posting a comment.<\/div>\n
\n
Seattle Bubble Tip Jar<\/a><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

A number of readers pointed out an article in yesterday’s Seattle Times about “multifamily housing” (apartments) that’s full of the usual pep-talk and rah-rah-speak claiming that prices have nowhere to go but up, up, up, and isn’t that just wonderful! With apartment vacancy rates declining and job growth increasing, real-estate investors are snapping up properties…<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[1],"tags":[1113],"coauthors":[],"class_list":["post-285","post","type-post","status-publish","format-standard","hentry","category-uncategorized","tag-uncategorized"],"yoast_head":"\nRents Predicted To Rise... 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