Seattle’s real estate market is on fire, and if you own rental properties you may have noticed that the Seattle rental market is moving just as quickly. According to the Seattle Times, “the greater Seattle real estate market — already the hottest in the country — somehow keeps picking up even more steam.” What is the status of the current rental market, and how will this impact your choices as an owner of Seattle rentals?
Trends in the Seattle Rental Market
According to Curbed, “a new report by Zillow on March 2017 rental data showed a 6.7 percent increase in rent in the Seattle metro area, which includes King, Pierce, and Snohomish County, compared to March 2016.” This increase is down slightly from a past increase of 8 percent, but rents are still steadily rising. While cities like San Francisco clocked in with a zero rental increase, Seattle’s rental costs are still growing.
While increasing rents put tenants in a pinch, they’re a boon to real estate owners. Not only have your Seattle assets appreciated, your month-to-month income has also increased.
What Does This Hot Real Estate Market Mean for Owners?
For property investors, this means that you have a large pool of tenants who may be permanent renters, since they need to or want to live in the Seattle area but feel like they’re priced out of the real estate market. High prices have combined with a housing shortage to make the rental market just as hot as the real estate market. If you have property to rent, you will have no shortage of tenants.
Higher rents have their downsides as well. Since Seattle’s rental market is so hot, Seattle’s Millennials are one of the fastest-moving generations in history. According to the Seattle Times, “in a hyper-competitive rental market, the city’s young people are on the move, looking for cheaper rent, a nicer place or somewhere close to work.” Millennials are slowly trying to move to the best location or find the most amenities for rentals in their price range.
As an owner, this means that you’ll expect higher turnover even as your rents increase and interest in your property increases as well. Prepare to make your homes as rich in amenities as possible to keep your tenants a little longer, but be ready for a lot of move-in and move-out activity.
What Are the Prospects for Home Buyers?
If you’re an owner, you’ve been a buyer. For owners considering a new home purchase, Seattle’s rising market rates can make this purchase a significant investment. It’s hard to find properties that are less than half a million dollars, even if they’re a smaller home in a less-popular neighborhood. Buyers are bidding up prices, and buyers may choose to waive inspections and contingencies in this fast-moving market. If it’s time for you to sell one of your investment properties, this will place you in good stead. If you’re adding to your housing stock, take a look at the emerging but less-expensive suburbs to find the best deals.
At Lori Gill and Associates, we’re here to help you grow your rental business. We’ll support you as you manage your properties. From marketing to the management of the day to day details of your Seattle rentals, turn to Lori Gill and Associates to make sure that your property business is running smoothly. Connect with us today.