Analysis Finds Rent Prices Across Washington Leveling Off

As newly constructed apartments open to tenants, rent prices across Washington are stabilizing, according to a recent analysis of the state's rental market.

Between July and September, the average apartment rent statewide was $1,763, reflecting a modest 0.6% increase from the previous year, based on the Washington Center for Real Estate Research’s quarterly apartment market report. Compared to the second quarter of this year, third-quarter rents saw a 0.6% decrease, marking the first drop since the last quarter of 2022.

Despite this stabilization, a significant number of tenants remain behind on rent, raising concerns among advocates who argue that more support is needed to prevent evictions.

Steven Bourassa, a University of Washington professor and director of the Washington Center for Real Estate Research, attributes the easing rent growth to the influx of new apartments built over the past three to four years. However, he notes that demand has not necessarily increased, particularly in the Puget Sound region, where the vacancy rate is close to 5%. This follows two years of rising vacancy rates after the state reached a low of 3.6% in the fall of 2021.

"The market is saturated at the moment," Bourassa commented.

Rents in the Puget Sound region increased by just 0.4% compared to last year, yet they remain some of the highest in the state. In King County, where Seattle is located, the average rent for all apartment types was $1,997, while in Snohomish County it was $1,864.

Yakima and Whitman counties had the lowest rent prices, at $934 and $1,052, respectively.

Although the statewide average is leveling off, some regions have experienced significant rent increases. For instance, Grant County saw a 6.2% year-over-year rise in average rent for all apartments, bringing the average rent there to $1,172.

Bourassa explains that the recent trends in vacancy rates and rent prices indicate a lack of demand: as vacancy rates increase, rents tend to decrease. At the beginning of the pandemic, vacancy rates dropped due to a surge in apartment demand, prompting developers to build more apartments.

Despite rent stabilization, housing advocates highlight that many tenants in Washington are still struggling with rent payments. Over the summer, the number of tenants behind on rent was close to the historic highs seen during the pandemic, according to Michele Thomas, director of policy and advocacy at the Washington Low Income Housing Alliance.

"The data is alarming," Thomas stated.

From June to early October, 6% to 10% of Washington renters reported being behind on rent, according to the U.S. Census Bureau’s Household Pulse Survey. During the peak of the COVID-19 pandemic, this figure ranged between 5% and 13%.

Households earning less than $75,000 annually and households of color are disproportionately affected.

With the end of pandemic rental assistance, there are "very few resources available" to help tenants, Thomas said. Contrasting the UW report, she noted that many tenants are seeing rent increases of over $100 a month, occurring across the state.

Thomas urged lawmakers to consider policies that would limit landlords' ability to significantly raise rents and to invest more in permanent affordable housing.

While bills to limit large rent hikes failed to pass during this year’s legislative session, some lawmakers have indicated plans to revisit these proposals in 2024.

"It’s going to be another session on housing next year," said Senate Housing Chair Patty Kuderer, D-Bellevue. "We’ll see what comes out."

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