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