“In our portfolio, we’re starting to see signs of things slowing down a little bit,” Billy Pettit, senior vice president at Pillar Properties, said Monday. While demand remains high, he said the large number of new units coming to the market is reason to pause, especially since the increase in supply is slowing down rent growth. There are 22,000 units projected to open this year and next. Combine that with the 7,400 units developers opened last year. – the highest level of production seen locally since 1991 – and it’s easy to see why landlords are concerned.
“This means rents won’t increase at the rate that some sources say they will,” the Puget Sound Business Journal concludes.
In September, CHS reported Dupre+Scott analysis showing rents across Central Seattle including Capitol Hill were up about 4% for the year — down from 8.4% a year earlier. Following a spike of new units coming online in 2014 Capitol Hill is poised to add at least 560 new apartment units in 2015 and more than 1,500 more in the next three years, according to Dupre+Scott. Meanwhile, 2016 is set up for a year of progress on a plan to create 20,000 affordable apartment units in Seattle by 2025.