HOME.
HOME. >>>
HOME. >>> THE ONCE VOLATILE HOUSING
MARKET HAS STABILIZED SOMEWHAT
AND THAT HAS HAD A BIG IMPACT
ON RENTAL PRICES AND
AVAILABILITY.
AVAILABILITY. >> THINGS HAVE CHANGED QUICKLY
AROUND HERE.
AROUND HERE. WITH SOME INSIGHT ON WHAT THAT
MEANS A PROFESSOR OF MARKETING
AT THE UNIVERSITY OF
WASHINGTON JEFF IS JOINING US.
WOULD LOVE YOUR PERSPECTIVE ON
THIS.
THIS.
THIS. IT
THIS. IT IS JUST A WIDE LOOK AT THE
HOUSING MARKET HERE.
THINGS HAVE FLATTENED OUT BUT
WHAT'S THAT GOING TO MEAN FIRST
RENT IN SEATTLE WHICH HAS BEEN
A NIGHTMARE FOR SOME TIME.
>> IF YOU ARE A RENTER YOU CAN
EXPECT SOME RELIEF BUT YOU
WILL HAVE TO WORK FOR IT.
IF YOU ARE A HOMEOWNER OR IT
WOULD BE HOMEBUYER YOU'RE IN
FOR A WILD RIDE IN THE COMING
YEARS.
YEARS.
YEARS. >>
YEARS. >> LET'S TALK ABOUT THE RENTAL
SITUATION.
SITUATION. HE SAID HE WILL HAVE TO WORK
FOR IT.
FOR IT.
FOR IT. WHAT DOES THAT MEAN?
>> PRICES ARE LIKE GRAVITY.
ONCE THEY START TO FALL THEY
DON'T COME BACK UP.
THESE BUILDING OWNERS REALIZE
IF THEY START LOWERING IT NOW
IT WILL BE HARDER WHEN THINGS
GET TIGHT TO RAISE IT AGAIN.
THEY ARE REALLY RESISTANT TO
LOWERING PRICES.
LOWERING PRICES. THEY WOULD RATHER GIVE MOVE IN
PRICES OR OTHER PERKS.
WHEN THE SELLER IS IMPATIENT
THE BUYER HAS THE POWER.
AT THIS LEVEL OF INVENTORY AND
THE VACANCY RATE IS GOING TO BE
THOSE THAT ARE DESPERATE.
>> IF YOU ARE A LANDLORD AND
YOU REALIZE THE HOUSING MARKET
STABILIZE A LITTLE BIT THERE'S
MORE AVAILABILITY WITH RENTALS
AND YOU WANT TO BE COMPETITIVE
AND GET SOMEBODY IN YOUR HOUSE
OR YOUR APARTMENT WHAT DO YOU
DO.
DO.
DO. HOW
DO. HOW DO YOU KNOW WHAT IS GOOD
PRICING AND HAVE PEOPLE MEET
YOU AT THAT LEVEL.
>> TO ALL OF THE RENTERS I
APOLOGIZE FOR THIS COMMENT BUT
FOR LONG-RUN PROFITABILITY IT
IS BETTER TO LET IT SIT A
LITTLE BIT LONGER.
IT IS BETTER TO HOLD THAT
PRICE AND MAYBE GIVE SHORT-
TERM INCENTIVES LIKE FREE
PARKING OR FREE ACCESS TO
SOMETHING OR ANOTHER.
IT'S BETTER TO GIVE INCENTIVE
SO WHEN THE MARKET PICKS BACK
UP PEOPLE DON'T THINK THIS
APARTMENT ISN'T WORTH THAT
MUCH.
MUCH.
MUCH. >>
MUCH. >> WE ARE EXPECTING TO SEE
MORE CONDOS DOWNTOWN.
HOW DO YOU EXPECT THAT TO
CHANGE THE FEEL OF SEATTLE.
DO YOU SEE THE CONDO DROUGHT
CHANGE IN WITH THIS NEW RENTAL
PRICE.
PRICE.
PRICE. >>
PRICE. >> THERE IS A LOT GOING ON IN
THIS MARKET.
THIS MARKET. I'VE BEEN STUDYING SEATTLE'S
GROWTH FOR A COUPLE YEARS AND
I HAVE SPOKEN TO FORMER MAYORS
AND EVERYDAY PEOPLE AND CEOS
TO NOT ONLY WHAT ARE THE
CONSEQUENCES OF THE GROWTH BUT
WHY ARE WE GROWING.
IF YOU LOOK AT THE REASONS WHY
WE ARE GROWING SO FAST YOU ARE
STARTING TO SEE IT MIGHT BE
THE SEATTLE SLOWDOWN PODCAST.
>> IS IT BECAUSE OF ALL THE
PEOPLE THAT ARE COMING HERE
FOR JOBS AND NOW THERE IS NOT
THAT INFLUX ANYMORE?
>> LONG-TERM SEATTLE WILL
STILL DO GREAT.
HOMEOWNERS ARE IN FOR AN
INTERESTING RIDE.
INTERESTING RIDE. LONG-TERM I WILL BET ON
SEATTLE.
SEATTLE.
SEATTLE. THERE WILL BE CLIMATE
MIGRATION.
MIGRATION. A LOT OF PEOPLE ARE MOVING
HERE FOR THE CULTURE AND
CREATIVITY.
CREATIVITY. A BIG DRIVER OF GROWTH HAS BEEN
AMAZON AND COMPANIES THAT ARE
MAGNETIC TO TALENT.
AND WITH THEM HAVING THE DC
AREA AND NEW YORK WE WILL SEE
NOT JUST THE TALENT GO THERE
BUT THE OTHER JOBS THAT WERE
CREATED HERE AND OUTSIDE
INVESTMENT WILL GET EXUBERANT
ABOUT LONG ISLAND CITY AND THE
DC AREA.
DC AREA.
DC AREA. >> DOES ANYTHING MORE YOU ARE
CONCERNED YOU BECAUSE YOU HAVE
STUDIED THIS ISSUE SO MUCH.
ANYTHING THAT POPS OUT THAT
MAYBE PEOPLE ARE NOT TALKING
ABOUT.
ABOUT.
ABOUT. >>
ABOUT. >> I THINK WE ARE DUE FOR A
SLOWDOWN IN THE NEXT 2 TO 5
YEARS.
YEARS.
YEARS. I
YEARS. I THINK HOUSING PRICES WILL
DIP.
DIP.
DIP. WHAT
DIP. WHAT THAT MEANS IS PEOPLE
BECOME HESITANT TO INVEST AND
LONG-TERM I AM VERY BULLISH ON
SEATTLE.
SEATTLE.
SEATTLE. IF PEOPLE DON'T INVEST IN
THESE NEXT 2 TO 5 YEARS WE
WILL HAVE THE SAME GROWING
PANS THAT WE HAVE THESE LAST
FEW YEARS.
FEW YEARS. >> IT IS CYCLICAL.
YOU ARE FEARING SOMETHING AND
YOU DON'T INVEST AND THEN IT
DOESN'T GROW.
DOESN'T GROW. >> IT'S A GREAT CITY TO LIVE.
PEOPLE WILL STILL COME HERE.
BUT THE FIRES IN CALIFORNIA
AND THE SNOWSTORMS ON THE EAST
COAST AND THE LACK OF WATER IN
THE SUNBELT WE WILL SEE A LOT
OF PEOPLE STILL WANT A
BEAUTIFUL