Rental prices are cheaper in Seattle than they were in July 2023

SEATTLE — If you’re looking for a rental in Seattle, you don’t need to be so afraid to look at the price.

“I think it’s a good sign for where Seattle’s housing affordability is headed,” said Redfin Chief Economist Daryl Fairweather.

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

It’s the first time that’s happened since 2020.

All sized units are down at least $50 a month.

“If the only thing you’re looking at is the monthly housing payment, right now, it’s more affordable to rent than to buy because of how high mortgage rates have made monthly mortgage payments,” said Fairweather.

In Seattle, the median price for a rental is now $2,075. That’s 3.5% cheaper than this time last year.

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Rents are actually going up in some cities like Chicago, Baltimore, and Washington DC. Cities with the biggest price drops include San Diego, San Francisco and Austin, Texas.

“I think it is coming from added supply and perhaps some of the zoning reforms that have been in place, increased supply of things like ADU’s or duplexes is helping,” said Fairweather.

Vacancies are at 6.6%, the highest level since 2021. That rate is even higher for large buildings like high-rises.

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

“If interest rates come down, I think that people who signed leases last year and are now deciding if they want to renew or get into the housing market, more of them are going to be choosing to buy because it’s a little more affordable than it used to be,” said Fairweather.

That could mean less demand and even more supply.