Comments on: . . . and still they build! http://blog.redfin.com/seattle/2008/06/_and_still_they_build.html Redfin Seattle Sweet Digs Sat, 04 Feb 2012 08:50:47 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: Marie http://blog.redfin.com/seattle/2008/06/_and_still_they_build.html/comment-page-1#comment-2236 Marie Thu, 12 Jun 2008 19:00:24 +0000 http://blog.redfin.com/seattle/2008/06/_and_still_they_build.html#comment-2236 The rental rates have really shot up over the past couple years, it would be great to reach an equilibrium. I was renting a 350 square foot loft on Cap Hil for $1200 per month! It was cute and had a view of mount rainier but the parking sucked and I'm so glad to be outta there! The rental rates have really shot up over the past couple years, it would be great to reach an equilibrium. I was renting a 350 square foot loft on Cap Hil for $1200 per month! It was cute and had a view of mount rainier but the parking sucked and I’m so glad to be outta there!

]]> By: Michael P Lindekugel http://blog.redfin.com/seattle/2008/06/_and_still_they_build.html/comment-page-1#comment-2222 Michael P Lindekugel Wed, 11 Jun 2008 13:14:46 +0000 http://blog.redfin.com/seattle/2008/06/_and_still_they_build.html#comment-2222 Some condo projects under construction have stalled for lack of financing. Some condo projects approved but not started have folded from lack of financing. Some in the permitting process have dried up. Some condo conversions are reverting back to apartments. The return on capital or discount rate as a long term rental property is higher than for resale as condos. We are continuing to see quite a bit of institutional multifamily investment. Some of the construction is new apartments to fill the void from the loss of 5000 rental units to condo conversions since 2003. There is not enough apartment construction to meet demand. Expect high rents and low vacancy to continue through the end of 2009. Some condo projects under construction have stalled for lack of financing. Some condo projects approved but not started have folded from lack of financing. Some in the permitting process have dried up. Some condo conversions are reverting back to apartments. The return on capital or discount rate as a long term rental property is higher than for resale as condos. We are continuing to see quite a bit of institutional multifamily investment.

Some of the construction is new apartments to fill the void from the loss of 5000 rental units to condo conversions since 2003. There is not enough apartment construction to meet demand. Expect high rents and low vacancy to continue through the end of 2009.

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