Rent prices in Seattle are cheaper than in July 2023

LOS ANGELES — When you're looking for an apartment to rent in Seattle, don't be afraid to look at the price.

“I think it's a good sign of where housing affordability is headed in Seattle,” said Daryl Fairweather, chief economist at Redfin.

According to Seattle-based real estate brokerage Redfin, the median rent price was lower in July 2024 than in July 2023.

This is the first time this has happened since 2020.

Costs for units of all sizes will drop by at least $50 per month.

“If you only look at the monthly payments on your home, it is currently cheaper to rent than to buy because high mortgage rates are driving up monthly payments,” Fairweather said.

In Seattle, the median rent is currently $2,075, which is 3.5% cheaper than the same period last year.

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In some cities, such as Chicago, Baltimore, and Washington DC, rents are actually rising. Cities with the biggest price drops include San Diego, San Francisco, and Austin, Texas.

“I think it's due to the additional supply and maybe some of the zoning reforms that have been implemented that encourage more supply of things like ADUs or duplexes,” Fairweather said.

Vacancy rates are at 6.6%, the highest level since 2021. For large buildings such as high-rise buildings, this rate is even higher.

The federal government is still expected to cut interest rates next month, which could impact the rental market.

“As interest rates come down, I think more people who signed a lease last year and are now deciding whether to renew or get into the homeownership market will choose to buy because it's a little more affordable than it used to be,” Fairweather said.

This could mean lower demand and even greater supply.