Are you hunting for an apartment in Western Washington? Well it’s your lucky day, as The April 2015 Puget Sound Dupre + Scott Apartment Advisor has been released, and we’ve summarized some of the most pertinent information just for you!
- Developers opened just under 8,000 units last year, the most since 1991.
- Developers are expected to open 12,400 units in 2015 and 11,600 units in 2016.
- Overall, this means nearly 50,000 units are projected to open between now and the end of 2019.
- 89% of the region’s planned development will be in King County.
- Between April 2013 and March 2014, 157,000 new residents moved into Washington state.
- 100,000 of these people arrived in the Puget Sound. Even with the estimation of half of these people moving, it still leaves 55,000 more people in the area, which will require close to 14,000 housing units in 12 months.
- The latest Puget Sound Economic Forecaster by Conway Pedersen Economics, expects 177,000 jobs to be added between now and 2019.
General Market Info
- Rent prices have risen 2.6% in our region since September and 7.4% from one year ago; however new units coming into the market distort this information slightly. When excluding the units opened in 2014 and 2015, rents rose 1.9% and 5.7% respectively.
- The last Apartment Expense Report found that total expenses rose 6.3% last year.
- The Dupre + Scott annual study of apartment expenses found that between 2004 and 2014, apartment rent in the region increased 3.9% per year, while total expenses rose 4.5% per year. This is due to a combined increase of 5.3% per year in taxes and utilities.
- In the Puget Sound region, 14% of properties are currently offering rental concessions of approximately $744. The number of apartments offering concessions is expected to increase due to the large number of newly constructed units beginning lease-up.
- The current market vacancy rate of 3.5% is expected to increase to 4.2% by the end of 2015, 4.7% in 2016 and 6.1% in 2017.
- Cap rates are down slightly this year in the Tri-County area, averaging 5.2%.
- Cap rates are expected to remain steady due to concern of higher interest rates. This leaves price increases dependent on net operating income. As a result, prices are expected to continue to rise slowly through the middle of next year.