Tacoma’s rents are still low, comparatively, but rising faster than in other area cities
While most everyone agrees rents are high in Tacoma, a new report shows the city remaining the lowest priced metro among Seattle-metro cities.
That said, rents have been increasing in Tacoma for 15 straight months, according to the report, with the last decline in June 2020.
Apartment List, a listings and rental data site which issues a rent overview each month, says Tacoma was the lowest priced among the nine other cities in its Seattle-Tacoma survey.
Two-bedroom median rent in Tacoma was listed at $1,680, compared with Seattle at $2,170, Kent at $1,860, Everett at $1,730 and Lynnwood at $1,710. The national average is $1,275.
Other cities were more expensive than Seattle in the two-bedroom median rent rankings, with Redmond at the top of the comparison chart at $2,560, followed by Bellevue at $2,520, Kirkland at $2,400, Bothell at $2,260 and Renton at $2,190.
According to Apartment List, Tacoma “has also experienced the fastest rent growth in the metro, with a year-over-year increase of 18.9 percent.”
That compares with the state’s rate of 14.2 percent over the past year and the national average of 15.1 percent.
Other cities have seen more dramatic growth in their rent rates year over year than Tacoma.
Spokane, at $1,360 for median two-bedroom, has seen its rents grow 29.2 percent in the past year. Phoenix was up 27.0 percent year over year, Austin is up 24 percent — all more than New York at 18.3 percent.
Another Northwest city caught the attention of the data website.
“Notably, one of the few markets where rents did not increase this month was Boise,” Apartment List said in its national report. “Since last March, rents in Boise are up by a staggering 39 percent, making the city the archetype for rental market disruption amid the pandemic.”
In Tacoma, rents have increased 21 percent since March 2020, ahead of the national average of 14 percent, according to Chris Salviati, senior economist with Apartment List.
Salviati noted that among the 100 largest cities in the U.S., Tacoma ranks No. 34 for rent growth since the start of the pandemic.
The News Tribune sent questions to Salviati for more context about the recent report. Responses are below:
Q: What explains the higher percentage of rent increases in places like Fresno, California or cities in Nevada/Arizona?
A: Compared to Tacoma, markets like Fresno, Las Vegas and Phoenix all still offer an affordability advantage over Tacoma, which may be part of the reason that these areas are seeing even faster rent growth. Tacoma is still tied to the broader Seattle metro housing market, which remains one of the nation’s most expensive. Broadly, we’ve been seeing demand shift regionally toward more affordable Sunbelt metros.
Q: Any single factor to explain what’s happening in Spokane?
A: Spokane rents are up by 34 percent since the start of the pandemic, ranking No. 3 among the 100 largest cities. I think the strong demand in Spokane is being driven by a combination of relative affordability, good livability, and access to nature, particularly as remote work frees up more folks to choose where they want to live independent of where their jobs are located. That said, rents in Spokane fell by 1.8 percent this month, one of only three cities among the top 100 that saw a month-over-month decline. Boise also saw a very slight 0.1 percent decline, indicating that these markets may be starting to level out.
Q: Advocates for a recent push to replace single-family zoning in Tacoma with more housing options insist that more apartments or rentals will bring down overall rents, while those opposed say it could destroy neighborhoods and raise rents with more gentrification. In your reports, do you have any evidence supporting or challenging either view from other cities?
A: This is a really nuanced topic. Broadly speaking, if demand for housing outstrips the supply of new housing over the long run, prices will increase and affordability problems will arise. On a macro scale over the long-run, zoning reform that leads to an increased supply of new housing should help to relieve pressure in the market and lead to cooling prices. At the same time, the dynamics around particular developments/neighborhoods in the short run can be more nuanced, and concerns around gentrification and displacement are not to be taken lightly. On the whole, I would say that it’s important to address supply constraints by making it easier to produce new housing, but that this must be done in a way that prioritizes housing stability for existing residents.
This story was originally published October 4, 2021 at 5:05 AM.
