Bellingham’s rental rates are climbing faster than Seattle’s — here’s why

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Investment Property in Bellingham, WA. Here’s why. – Curbed .. Bellingham’s rental rates are climbing faster than Seattle’s – here’s why – The Bellingham Herald . Digging into the foundation of the housing cost crisis – Seattle Times .

But home prices are rising faster here than anywhere else in the country – growing even faster than rents – and there is a historic shortage of homes for sale. So many would-be homebuyers are.

Spokane has a 2.9 percent apartment vacancy rate with an average rental rate of $886, according to a September 2017 report by University of Washington’s Runstad Center for Real Estate Studies.

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Despite growing at a faster rate over the last year, Bellingham’s average rental costs are still lower than Seattle’s by a noticeable amount with an average rental rate of $1,623 compared to $2,204. There are two key reasons that Bellingham’s rental rates are increasing at a faster overall percentage rate than Seattle’s.

Communities where people spend more than 32 percent of their income on rent can expect a more rapid increase in homelessness. Income growth has not kept pace with rents, leading to an affordability crunch with cascading effects that, for people on the bottom economic rung, increases the risk of homelessness.

Because mortgage interest rates are climbing pretty quickly, a lot of potential homeowners are shying away from the idea of entering into a mortgage. Renting is Cheaper (in some places) Image from Trulia. In larger cities, rent is rising faster than pay raises which makes it difficult for people to rent.

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Even $15 an hour won’t be enough when it comes to paying rent in Whatcom County. In Whatcom County someone making the minimum wage of $11.50 an hour would have to work 69 hours a week to afford a fair market rate two-bedroom apartment unit, and 53 hours a week for a one-bedroom, according to the report.