SEATTLE—According to a recent report from Marcus & Millichap, after a 3.3% increase in headcounts during 2014, led by gains in the trade, transportation and utilities sector, employment will rise 3.5% this year, or by 65,000 jobs. This should keep the unemployment rate below 5%, the report says.
"Employment opportunities attract new residents," the report says. "During the last four quarters, more than 50,500 people have moved into the metro." The prime renter cohort of 20- to 34-year-olds accounted for nearly one-third of the total, the report says. "This surge in growth has led to the formation of roughly 28,500 households."
And as the population rises, the need for more housing mounts. "The 12,500 multifamily units permitted in the last 12 months amounted to a 25% decline from one year earlier. Singlefamily issuance, meanwhile, receded an annualized 2% advance to nearly 8,200 permits during the period."
Using traditional financing, the difference between the effective rent on an apartment built since 2000 and the monthly mortgage obligation on a median-priced home in the metro is $240 per month in favor of renting, the report explains.
So, what is the housing and demographic outlook? The report says that home prices have climbed 9% to a median of $380,300 in the last four quarters, placing them beyond the reach of many area residents. "This will keep a number of tenants in the renter pool longer, accelerating apartment demand and placing upward pressure on rents."
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
