The truth about apartment rents

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Dupre + Scott Apartment Advisors, Inc

There are two things to pay careful attention to when looking at rent trends if you don’t want to be misled. One is the impact of new construction on rent trends. With so much new construction scheduled to open in the next three years, this will have a bigger impact on trends than we've seen in decades. The other issue is, well you'll have to watch the video to find out.

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Dupre + Scott Apartment Advisors www.duprescott.com

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We were very disappointed by the Academy of Country Music Awards show last Sunday. What a whipsaw year so far. First we were thrilled when four of the nine movies nominated for best picture at the Oscars were specifically about apartment trends in the Puget Sound region. But it was a huge letdown when we saw that none of the country music nominations had anything to do with apartments. Even worse, Toby Keith wasn’t even nominated for his brilliant discussion about Seattle development trends in his song.

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We take a look at migration trends every month. They are important to our region's housing market so it pays for investors to keep tabs on what's happening. And month after month we have been reporting better news than the month before. You have to start wondering when the good news will stop. Well, maybe this is the month. There is good news. A lot of it. But we’ve found some bad news too. First, let’s look at the good news.

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A lot of investors are bullish on our region’s apartment market. They have seen rents climb over the past few years and expect more of the same. Others are worried that new development will increase vacancies and lower rents and values. The key is for investors to look at all of the inflationary and deflationary trends in the market, not just the one thing they might be fixated on today. It’s like the Patriots letting air out of footballs. Let's see how.

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