Predictions state the Seattle will have the fastest rising rents in the nation in 2017
According to a recent Zillow forecast, rents for apartment buildings are rising faster in Seattle than anywhere else in the country. According to predictions, this is set to continue throughout the next 12 months.
Predictions also state that rents will not only rise in-city but in surrounding lower cost suburban market such as Burien, Shoreline, Renton, and Kent. Many investors have been preparing for this by buying of apartment buildings in outlying areas for the last two years. Demand is rising as renters move in after they are priced out of the downtown Seattle area.
Statistics show that between August 2015 and August 2016, Seattle area rents rose 9.7% and was one of the nation’s highest increases. Over 2017, Seattle is set to remain the highest even though the increase forecast shows a lower percentage of just 7.2%. Currently, the median rent in Seattle is about $2067.
Just because our rents are increasing at a faster rate than any other major metropolitan city doesn’t mean we are the highest. The San Francisco bay area still remains as one of the most expensive markets in the country. Rents for the San Jose area are approximately $3500 a month and in San Francisco median rent tops out at $3400 per month. Even though this is quite high, forecasts show that it will only rise about 4.9% in San Francisco and 4.5% in San Jose in 2017.
Portland also comes in as one of the nation’s second hottest markets and will continue to do so throughout 2017. The median rent is currently $1777, which is 7.4% higher than last year at this time. Zillow will forecast that rents in Portland will increase about 6% over the next year.
To put this into some perspective, the median rent across the country only appreciate about 1.7% per year.
Zillow predicts that rents will rise the fastest in Shoreline at nearly 18.5%. Other places like Burien and Renton will see increases of about 11% to 14%.
Eastside’s premier neighborhood, Medina, is also on the list with a projected increase of nearly 14% over the next 12 months. However, low rent is not what attracts people to this upscale community, where the median rent is currently about $8500 per month.