Dupre + Scott Sounds the Alarm for Investors
Dupre + Scott, a rental research firm, sounds an alarm for apartment investors through the PSBJ, A warning to apartment investors: Seattle market not as hot as it seems:
This is according to a new report by Seattle research firm Dupre + Scott Apartment Advisors, which forecasts rents at older buildings will increase only 1.5 percent by next spring when job growth is expected to start slowing significantly.
A 1.5 percent increase seems extraordinarily low for the region, where rents are 8.3 percent higher than a year ago. But in actuality, rents didn’t increase that much, according to Dupre + Scott. The company found that the thousands of new apartments that have opened in 2015 distort market reality because new units typically garner a rent premium of more than 40 percent.
Update: you should also check out this Capitol Hill Seattle post on raising rents, Capitol Hill rents still rising but relief — and a new idea — arriving for tenants in older buildings.