Apartment renters here have experienced virtually no increase in rents over the course of the past year. The survey says the average rent in September 2002 was $864. In June, the figure was $862; and in December of 2001, it was $860. That represents less than a percentage point increase in the past year, and only a 13.9% hike over the past four years. In the past quarter, RealFacts finds only the studio and two-bedroom/two-bath units showed any signs of upward movement. Occupancy changed only a fraction of a percentage point in the third quarter and now stands at 92.5%, compared to 92.3% in June.

Despite the lackluster market, additional units are still coming on line. To help lease up their luxury apartments, a group of 25 complexes has banded together to create an ad campaign promoting the appeal of living in the central city. But the slogan is more like a Band-Aid on a much bigger problem, according to RealFacts. The area economy, which has absorbed 16,000 jobless workers because of Boeing layoffs alone, has created a lower demand for the multifamily market, keeping rents flat and vacancies up.

RealFacts reports this phenomenon has discouraged institutional investors. Sales volume has dropped in the market, and when a sale does occur, the most likely buyer is a private investor. Yet many analysts still believe that the Puget Sound area, with its temperate climate, abundance of water and hydroelectric power, and its active ports, will inevitably rebound.