And after an average regional rent increase of 5.3 percent since last spring, Scott forecasts they'll rise just 4.2 percent next year. That's well below the 8 percent hike that left renters breathless three years ago. Meanwhile, property managers like Russ Francisco, president of Pan Pacific, which manages 2,500 units throughout Puget Sound, say they're not seeing much effect from the slowing economy. It hasn't had a lot of impact on the vacancy rates in our portfolio, although we have noticed a fair slowing in the number of prospects in the last month. But that may just be a temporary lull, he theorizes.
Kids are out of school, and people who move here do so in the summer.
Although rent increases have outpaced inflation in the past year, they have not outpaced income, Scott notes. However a check of King County neighborhoods shows that in 17 out of 36, rents are currently more than that on average. One is Belltown, where new high-rises chock full of amenities command premium rents that equal or exceed house payments. I believe a lot of those people are renters by choice. It's part of the lifestyle to live downtown.