Seattle’s real estate market has been making headlines all year. Over the past few years it has become one of the top cities in the nation for growth and home price increase while inventory is decreasing rapidly. With Seattle’s tech boom in full effect, the city is catching and surpassing San Francisco in numerous categories and average rental price increase is now another category to add to the list.
The average rental price in Seattle has passed $2000 per month and is up almost 10% from last year. This is the first time Seattle has seen the average rent this high and it is currently around four times the national average! Tech employees moving to the area aren’t having as much trouble with affordability as there are supply, while a large portion of locals are struggling with finding affordable housing in Seattle.
Median Monthly Rent in Seattle
(data from Zillow)
- 2016 – $2031
- 2015 – $1852
- 2012 – $1575
Alongside increasing rent, Seattle’s home sale prices are increasing at one of the fastest paces in the nation. Monthly supply is dangerously low and investors are building anywhere they can. The Denny Triangle currently has 23 new high rise mixed use apartment buildings under construction. Current competition within the home market is leaving more renters and less supply for rental units. This is leaving more room for landlords to increase rent as there is no where else for tenants to go. Scenja Gudell, chief economist at Zillow, said “I wouldn’t be surprised if we continue to see solid (rent) growth,” Gudell said. “Is it going to stay right around 10 percent? I don’t think so. At some point, as we continue to see more and more apartments coming online, rental growth will slow.” With this insight you can be safe to bet that rent will continue to increase until more affordable housing pops up around the area.
As always, if you are looking for a rental or doing an online Seattle home search, let us know how we can make your life easier!