According to Seattle Times on May 22, 2014:
From July 1, 2012 to July 1, 2013, Seattle grew by 2.8 percent — the highest rate among the 50 most-populous U.S. cities. Seattle added nearly 18,000 residents in the one-year period, bringing its population to about 652,000.
This data show 46 out of the 50 major cities grow last year – this is no accident. When economy recovers, large companies provide more job opportunities and naturally these jobs are in larger cities.
Followed by Seattle, Sammamishhas 2.2% population increase, and Auburn 2%, Richland 1.7% (where is Richland??) and Redmond(1.7%).
Currently there are 3.61 million residents in the Seattle-Tacoma-Bellevue metropolitan area. Among this figure, 57,000 are new residents who just moved to the area.
What does this mean to real estate market in Seattle? Like my mentor, Shiao-Yen Wu, said to me before, “everyone needs a roof on top of their head.” Whoever is thinking about purchasing a home in Seattle feels it, homes are closing fast and more and more expensive. Classical supply-demand effect.
I would say, for young investors who just started, get a little further away from the city to avoid bidding war. I am looking to buy my first investment property in suburb area 10-15 miles away from Seattle 🙂
via Census: Seattle is the fastest-growing big city in the U.S..
It’s funny how house conditions change within 2 blocks. We see some fancy fancy cute houses around the block of 65th and 25th Ave, and off the sudden, when you get to 75th, things change! Lots get bigger, houses get lower, lawns turn boring.. I was looking at this short sale house on 75th and 25th Ave a month ago. It would make a excellent rental property given its bright large square rooms, and private back yard. Yesterday when I drove by it from school, I saw a sad looking house, more specifically, a vacant looking house right across street from the short sale house. Hmm. Time for some title checking and door knocking you say? 🙂
Dupre Scott Apartment Advisors – Rental market & development trends.
I am learning many things from this post – which has been quoted by the Puget Sound Business Journal this morning.
1. Rents up!
Overall, including the addition of new construction over the past year, rents climbed the most in the in-city Seattle market, up 8.3% since September 2012. Excluding the new units added last year and so far this year, rents rose 5.1%.
The average in-city rent is $1,459, but that includes all unit types. The average one bedroom apartment is $1,417 and two bedroom two bath apartments average $2,210. Both of these averages are pumped up some by addition of new units. Rents in in-city properties built in the past half dozen years average $1,802 and $2,676 for one bedroom and two bedroom two bath apartments respectively.
I just rent out a 5BR split level earlier this year for $2,500. The property is in Maple Leaf, with great entertainment back porch and spacious bedrooms. Now I just feel I rented it out for too low..
As I mentioned before, I share my house with housemates. This is called a rooming house. I rent out the masters bedroom for $1,225, downstairs sunny basement room for $900, and a small bedroom for $550. Now I feel I am getting too little for them too.. Am I to greedy?
2. When to renew?
No matter how the market goes, you find Sept always a great time to list your property. You get the most rent and fastest contracts.
I found this report applicable for single family residence as well. The data may not reflect everything, but the trend in renter activities should be very close.