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Rental Rates Decline, but Investors Still Buying

SEATTLE-Developers are still interested in multifamily investments in Seattle, despite the fact that rental rents are rapidly slipping and are now at their lowest level since the first of quarter 2001.

By Michelle Savage | Updated on January 22, 2003

SEATTLE –According to RealFacts 4th Quarter multifamily data, the average rental rate for an apartment in the Seattle Metro area slipped down by about $6 between September and December 2002, yet developers remain confident in the market.

According to the RealFacts report, Seattle rents declined by 0.7% in the last quarter of the year. This means that rents are now at their lowest level since first quarter 2001, and the total annual change for 2002 was a decline of 0.2%. Seattle rents have remained basically unchanged for nearly two years. O ver the past four years, average rents increased by 13.7%.

The report states that the softness in the market is underscored by the relatively weak occupancy rate. After hitting a peak in 1999 and 2000 of about 96%, occupancy has been sliding slowly downward and is currently at 92%. This figure has not changed significantly in the past year.

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