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Rents fall sharply after the epidemic decline

When Bree Booz, a graduate student, was looking for a new home in North Seattle this year, he wondered what his money would buy. Or I did not buy.

“Having 200 square feet was more than $ 1,000,” said Boots, who was looking for an emergency when he needed to get out of a group housing contract. “The elections were very few, they had a high price.”

Interrupting the epidemic last spring, expensive cities like Seattle were named for an unusual trend. Rents were falling. Tenants were looking for lower rents or more space և Demand increased sharply in remote areas. Landlords in high-end neighborhoods like the South Lake Union were offering special deals, such as a free rental month, in an effort to attract new tenants.

Rents are now starting to duplicate. For the second month in a row, Seattle’s average rent for new leases rose from February to March, up 2.2%, according to Lease List, a leasing company.

And while Seattle rents have fallen by double-digit rates over the same period last year, the split between the most “less affordable apartments” continues. In neighborhoods like Central Seattle, including Capitol Hill, rents were falling for luxury apartments but remained unchanged for more affordable units.

“There were some pretty expensive options, I just can’t do it,” said Butz, who relies heavily on credit to study naturopathic medicine.

While searching, Boots said he was the victim of a Craigslist scam in which a prospective landlord interviewed him for a basement apartment, but said he could not personally walk through it because the tenants were vulnerable. for After Boots paid nearly $ 2,000, the interviewer said they had to leave the city. It turned out that the apartment was never really rented, Boots said.

Eventually, he found a studio for $ 1,095 a month.

Across the city, the average rent for a one-bedroom apartment in March was $ 1,397, according to the List of Apartments. The average price per room in the entire metro area, including Bellun և Tacoma, was $ 1,337.

Seattle is the third largest city in the world, with a year-on-year decline in rent, an increase of 6 per month, said Chris Salviati, an economist at the Housing List.

A similar return is taking place in other cities, such as San Francisco, which shows that “the days of falling rents in expensive coastal markets seem to be over,” according to the Housing List.

According to CoStar, another rental company, the biggest drop in rents in Seattle was in the most expensive apartments. New rental rates for more affordable units have remained unchanged, sharply reduced, or in some cases even increased, depending on the neighborhood.

In West Seattle և Rents for the lowest cost housing in North Seattle have risen in the range of 1 to 2%, while for the highest level units they have fallen by about 9%, according to another rental company, CoStar. The most affordable apartments in South Seattle were almost flat, up 0.2%, while the most expensive apartments were down 7%.

In downtown Seattle, including Capitol Hill, rents for the most affordable units were flat earlier this year than in the previous year, while mid-sized apartment rents fell by about 3% and prices for the most expensive flats fell by 10%.

Outside Seattle, rents are rising for even more expensive units such as Auburn & Everett. “This is a sign of ‘stronger demand in the suburbs during the epidemic,'” said AreS Ared Kadri, a CoStar analyst.

“To the extent that remote work is a factor that drives demand in markets like Seattle, it is something that is disproportionately driven by high-income people,” Salviati said. “At the same time, the economic downturn of the epidemic has disproportionately affected people in low-wage service professions. I suspect that the demand for affordable housing has not suffered the same blow.”

According to Seattle County A-Class apartments, which include most new homes, nearly a third of the property provided concessions in the first months of the epidemic for one month of free rent, more than double the rate a year earlier, according to a July report. From HUD. Nearly half of Zillow rental listings in Seattle last month offered promotions.

Companies that follow CoStar և rental-like listings can outperform large, high-end apartment buildings.

As remote work և social isolation stretches, demand for single-family rental housing is rising, with prices rising, said Corey Brewer, Vice President of Housing Operations at Windermere Property Management / Lori Gill & Associated. The property management company manages about 1,650 rentals, most of them single-family homes throughout the Qing District.

“If a house is in good condition, if its price is right, then we have a number of people in the corner who want it. Demand for a single family home in Issaquah. “This is what people want right now.”

For the rent of the complex, which is managed by the company, the interest is starting to return for two-room areas, but for small units it is still low, Brewer said. But “if it’s a small unit in downtown Beltown, Capitol Hill, it’s very difficult to find someone who wants to rent it.”

While the state of Washington continues its moratorium on evictions, an estimated 112,900 households, or about 14% of tenants, are not renting in Seattle-Tacoma-Bellu area, according to the US Census Bureau in early March. The order expires on June 30.

The decline in rent in the epidemic era is in stark contrast to previous years. In Seattle, according to the HUD, the average monthly rent increased by 64% from 2010 to 2019.

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