The Puget Sound Business Journal published an article late last week about the tightening of the apartment market in the Seattle-Tacoma area and the projected rise in rent prices this year. The information referenced in the article is from Marcus & Millichap’s Apartment Research 2011 Market Outlook.
On vacancy rates and rent prices:
Vacancy rates will slide downward to 4.9 percent, and rents will go up an average of 3.9 percent to an average of $1,026 per month.
On expected completion of apartments:
Construction will slow to just 915 new apartment units this year, down from 4,800 apartments delivered last year.
And the hot spots of job activity that will fuel leasing activity:
“…Leading job creation through 2011 will be tech firms such as Amazon, Isilon and Salesforce.com, which will fuel apartment leasing activity primarily in the Downtown/Capitol Hill/Queen Anne submarket. Expanding head counts at Google, meanwhile, will drive renter demand for Class A units in both Fremont and Kirkland, especially with soft housing conditions marketwide encouraging many residents to consider rentals,” the report noted.
And you know what else is going up? Light rail fares to the airport are increasing by $.25 starting June 1 (plus some other Sound Transit express bus fares).