Seattle Bubble has moved! Redirecting...

You should be automatically redirected. If not, visit http://seattlebubble.com/blog/and update your bookmarks.

Off-topic comment? Interesting link?
Head over to the forums, or click here for open threads.

Monday, October 09, 2006

In a Nutshell

True story.

A friend of mine was renting a decent apartment in the Fremont / Greenlake area in early 1994 for $850 per month.

In late 1994 he bought a decent, mid-range house in the same area for $150,000. Over the next 12 years, he didn't do any major remodels, just regular maintenance and a few minor projects here and there.

He just sold the house... for over $500,000. That's 240%+ appreciation in 12 years, an average of about 10.75% per year.

Now he's back to renting a similar quality apartment to what he had in 1994, in the same general area. His monthly rent is $1,150—35% higher than in 1994.

I think that about sums up why I think there is something seriously out of whack with home prices in Seattle.

3 comments:

SourMash said...

Smart friend.

MisterBubble said...

It gets worse, if you consider that rents would probably be lower if property values weren't bubbled like a cheap beer....

Autumn73 said...

As a long-time, but young Seattle resident, it amusing me how the over-inflation of property is only now seen as affecting the "middle class and thus cause for futher study by official organizations.

I don't want to leave Seattle, but my situation is also similar to pepedaniels' comment below. Per current Seattle.gov income charts my household income (as a single, wage earner/grad student/mom still only puts me in the "60% of the median income earners" of (King County). I grew up here, I'm raising my son in a post WWI three-story, walk-up apartment, and yes, I'm frustrated.