31 Mar Rent Trends for Seattle Rentals
What’s going on with Seattle rentals? As a property owner, you need to keep on top of the latest trends and watch for upcoming trends so that your properties can lead the pack. Unleash your properties’ potential and reach for rental success.
Rising Interest Rates
Interest rates are going up, according to Fortune Magazine. The Federal Reserve raised interest rates, and “these decisions will cause mortgage rates to rise, potentially making it more difficult for prospective homebuyers to be able to afford the home of their dreams.” What does this mean for your rental properties? While this is bad news for prospective home buyers, it’s good news for landlords. Higher potential mortgage payments could cause well-established tenants to stay in the rental market for now.
Smaller Cities Will See More Interest
Those who have invested in Seattle rentals know that the rental market has been hot. This poses a challenge for local housing markets, since it can be hard to build a lot more housing stock within a city. If you’re looking at new investments, you can also look outside the city itself to homes in Lynnwood, Edmonds, and other smaller, more suburban cities. With more room to expand, these cities can become stronger focal points for new home development and investment.
New Millennial Residents Need a Place to Live
According to Sammamish Mortgage, “the metro area’s robust job market is especially attractive to young, upwardly mobile Americans, many of whom enter the housing market soon after arriving.” However, as the housing market becomes tighter and property values rise, it gets more difficult for new homeowners to enter that housing market. Instead, they may look to high-quality rental properties. These young, highly-motivated tenants are looking for locations that are convenient to the lifestyle they want: close to parks, restaurants, and entertainment. They’re also seeking rentals that cater to their needs, such as pet-friendly spaces. Millennials are focusing more on work and delaying marriage and children, and many are adopting pets instead. Your younger tenants are also part of a generation that’s grown up with technology, and they value high-tech home elements such as keyless entry and home energy monitoring.
Rents May Be Leveling Off
After years of rent increases that fly upwards, the vacancy rate has been increasing in the Seattle area. According to the Seattle Times article from December 2016, “compared to this time last year, rents are still up 7.9 percent across King and Snohomish counties, but that’s down from the consistent double-digit annual hikes seen throughout the past few years.” Some landlords are beginning to offer incentives to renters who are interested in getting into the market, such as a month’s free rent. While the Times states that it appears that rents are simply leveling off rather than taking a dive down, landlords will need to be more mindful about creating an attractive rental listing and rental package, since tenants will have more choice on the rental market.
At Lori Gill and Associates, we help property owners like you stay in touch with the latest in rental market trends. Whether you’re new to owning Seattle rentals or you’re a seasoned property owner, we can help you meet the emerging needs and interests of your Seattle tenants. Connect with us today and see how we can help you create a rental property listing and manage properties that hold strong in Seattle’s rental market.