What's This I Hear, About So Many New Apt. Buildings Standing Empty? (Seattle: apartment, rentals)

[oregonwoodsmoke]

I think the real mystery is why has the friend stayed in this vastly over-priced rental that his salary won't cover for 20 years even though the rent keeps going up and up.

[Bluefox]

Originally Posted by leastprime

We dropped the rent on purchase 2015. Dropped rent again in 2020. Meanwhile our expenses have increased-condo fees, taxes, insurance, etc. We are able to keep maintain rents because we are low leverage and because the units are desireable. We have only 2 rentals. Those with buildings nearing completion will have a rough time, there are many in Redmond. Sign on bonus of 1-2.5 months. Make your best offer.

Makes me wonder why none of them have decided to condo convert... now would be the time. Maybe they’re thinking things will quickly get back to 2019 levels. Personally I doubt that is going to happen anytime soon.

[leastprime]

Originally Posted by Bluefox

Makes me wonder why none of them have decided to condo convert... now would be the time. Maybe they’re thinking things will quickly get back to 2019 levels. Personally I doubt that is going to happen anytime soon.

wondered the same.
My guess, in the case of condo is the monthly mortgage + fees is greater than renting. People aren't stupid and a little crunching will show the numbers. Our condo purchased 3 years ago, we bid against +10 people, in a 3 day listing. Today 1 units (previously 2) are for sale, going on 5 months listing and at what we paid 3 years ago. Great location too.

[flyingsaucermom]

Originally Posted by leastprime

wondered the same.
My guess, in the case of condo is the monthly mortgage + fees is greater than renting. People aren't stupid and a little crunching will show the numbers. Our condo purchased 3 years ago, we bid against +10 people, in a 3 day listing. Today 1 units (previously 2) are for sale, going on 5 months listing and at what we paid 3 years ago. Great location too.

Wow. This is not the case in my neighborhood. At least not according to Redfin and recent sales in the neighborhood. We see at least a +$50k change in values in both our condo and townhome from three years ago.

Even our third property, bought last year, shows a +$20k.

[leastprime]

Example-Sample: Redmond
Condo, 925sqft, 2+2 with 1 car covered parking. @$550k. 20% down ($110,000), +3% fees.
finance $423,500 @3.75%, 30 yr, 720 creditscore, = $1961
Condo fees $650/mn
Insurance $60/mn
property taxes=$433
TOTAL ~$3100/mn vs rental 2+2 and 1 year contract.

[Ruth4Truth]

Originally Posted by oregonwoodsmoke

I think the real mystery is why has the friend stayed in this vastly over-priced rental that his salary won't cover for 20 years even though the rent keeps going up and up.

Apparently, the management keeps jacking up the rent on newly-vacated units to keep up with "market rates", but they can't raise the rents of the long-term residents that much, so there are different rent rates, depending on how long someone has been there. But after losing one of his two jobs during Covid, he's looking to get out. As soon as he finishes settling with the unemployment office (they haven't paid out everything they owe him yet), he'll be gone.

[Ruth4Truth]

Originally Posted by leastprime

Seattle developer to sell just-finished capitol hill apartments for low income housing/



I think that even the low income people may shun this building. May be a climb up FirstHill .

Those sound like micro-apartments. I guess if you're low-income in Seattle, that's all you get. I guess. you're supposed to feel lucky, that you get anything.

This must be part of the project the mayor announced....last year, I think? About working with developers to create a lot of low-income housing around the city. There was a certain number of units the City was aiming for, I forget the details.

[87112]

A ton of new apartments in Chinatown and Yesler Way that should be finished soon. Like the OP I too am wondering where the herd is coming from.

[thatguy950]

https://www.forbes.com/sites/chrisdo...h=4b7f01203146

https://www.uhaul.com/Articles/About...ration-Growth/

Could be this. Once WFH hit people who didn’t have to be in Seattle/WA blew out of town for good lickidy-split. Traffic patterns 7 days a week in Seattle would seem to agree as the roads used to be crowded even on weekends and now it’s basically empty 24/7 with traffic going down something like 60-70% IIRC

According to the Uhaul link, Washington fell SIGNIFICANTLY in just one year, one of the most moved TO states for years thanks to Amazon and whatnot, to one of the most moved AWAY FROM as soon as the opportunity presented itself for many people, and that all happened in just one year

[Ruth4Truth]

Originally Posted by 87112

A ton of new apartments in Chinatown and Yesler Way that should be finished soon. Like the OP I too am wondering where the herd is coming from.

There are those ugly clutters of cheap apt. buildings forming canyons almost like in downtown NYC, along Roosevelt Way and other streets leading north from the U District. Cheap apt. buildings have sprouted like weeds in some neighborhoods.