Seattle Rental Market

     Some landlords have been struggling over the last year as their tenants have become unemployed during the pandemic and unable to pay their rent.  The federal government along with many cities, including Seattle, have restricted landlords from evicting tenants for non-payment of rent.  At the same time, I don’t believe the banks have suspended the payment of the mortgage obligations by the owner nor have the cities and municipalities suspended the payment of real estate taxes.

     The rental housing market has softened in the Seattle Area in the last six months.  As leases have expired, some tenants have elected to move back home or consolidate their housing needs with friends and acquaintances.  I’ve seen more “For Rent” signs in the neighborhoods than I’ve ever seen before.  I personally know seven people, all renters, who recently moved or, are moving within the next 30 days.  And rental rates are dropping.  This may change as the economy improves but, as landlords struggle to collect rent while still paying their mortgages and taxes and rental rates drop, it’s likely that some of these properties will be sold in the coming months.

     I have an acquaintance who owns multiple rental properties around the University of Washington.  This past year has been devastating to him.  As you know, a large percentage of students have been learning from their parents’ homes and not returned to campus housing.  I expect there will be a fair number of students who adopt remote learning opportunities decreasing the number who return to campuses around the country.  Not only will this affect the housing market but, it’ll also affect the retailers who previously catered to the college students around campuses.