According to a Seattle Times article, apartment vacancy rates in Seattle are at an all-time low. In the past few years, the Seattle rental market, especially in Ballard, has shifted from a tenant-market to a landlord-market. What does that mean for people searching for apartments? High rents.
Using the basic economic theory of supply and demand, there hasn’t been much new supply. The amount of new apartments is one-third of what was offered in 2009. Additionally, demand is higher, MUCH higher. People who can afford houses are fearful to buy, so they are staying in apartments, despite the evidence that it may be more affordable to buy. Additionally (and this is my own theory), the economy is picking up, meaning more young professionals can afford to move out or live with fewer roommates than before. Demand has skyrocketed and that has caused the Seattle vacancy rate to be under 5%! The higher rents are definitely noticeable in Ballard.
Fortunately, Ballard is working hard to meet that demand. It is impossible to not see the cranes that dot the horizon as you look across Market or look up 15th or 24th. Tenants should feel some rent relief in the next year or so. However, some are worried that Ballard may be overbuilt. In my opinion, I think people will continue to flock to the neighborhood. But I’ve said that in previous posts. What do you think?
If you’re interested in seeing what’s available in the apartment market in Ballard and the surrounding areas, use the search tool here.