Market Update: while Seattle’s single-family home prices surged, rent fell 14%.
Since the pandemic began, median monthly price for a 1-bedroom has dropped to $1,483. Average rent for a 2-bedroom is now just $1,849. Seattle is experiencing the third-greatest decline in rent prices of all major U.S. cities, paired with all sorts of rental concessions.
The drop is limited to Seattle proper, however. Rents stayed level or even increased in Kent, Federal Way, Auburn, Everett, Tacoma, and Lakewood during October. Prices in Bellevue and Redmond sagged but remained relatively high. The median 2-bedroom rental price in Redmond, for instance, is $2,131 a month.
What does this mean for your real estate options?
- If you’re a renter, you don’t need to retreat to the suburbs to find the best deal. In fact, in many cases, the reverse is true.
- If you’re a renter, continuing to rent for a while might not be so bad. If your rent declines, consider putting the difference straight into savings if you can afford to do so. You can use that money later for a down payment.
- If you’re a landlord, this is a good time to remodel or update your home. With rent prices so low out, there won’t be a better time to improve your property’s value. You can always contact us for a list of contractors we recommend.
- If you’re a landlord, think about selling. While Seattle’s rents are plummeting, its home prices are soaring. You can also think big and look at other areas for an investment property, where you can take advantage of low interest rates and the wonky pandemic real estate market to snag a great deal.