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