At Juniper Capital, we strive to inform you about recent real estate developments and relevant news impacting Seattle and the Pacific Northwest. As Northwest private money lenders, we specialize in commercial real estate loans, land development loans, and more. Contact us today for more information about market trends, a current market valuation of your specific development, or any questions you may have about the real estate loan process.
In a recent Seattle Times story citing planned apartment construction in Seattle taking a record-setting dip, some analysts speculate at hints of a recession. City issued permits to build 14,816 multifamily units in the 12-month period ending July dipped of 6.3% compared to last year’s permitting. And as of June, Seattle had 19,345 apartments under construction — 19% fewer than the same time last year, according to housing market data firm RealPage.
With long-term goals in mind, our friends and associates at Collier’s International succinctly sum up Seattle’s housing market:
“While Seattle continues to find employees for thousands of new jobs each year, and keeps up with the apartment demand for all of the new residents, planned construction starts have dipped. No one expects employers to keep hiring at the same pace; it’s not feasible. However, fewer new jobs mean fewer new residents, and fewer new residents require fewer new units. Combine this with climbing land prices and construction costs, and the risk of starting a new project, for all but the largest developers at least, feels perilous.
We continue to sell land to developers. Not all of their projects will be built this cycle; many have income to sustain them until the time is right. Many projects will also hit the market with plans in place. Regardless, we believe in the long-term outlook for Seattle and the real estate market, and owning property in good locations will always be valuable.”
Thank you to The Seattle Times and to Colliers International for their insights above. Our goal at Juniper Capital is to help you achieve quality real estate investments in Seattle, Montana, Colorado, Utah, and other markets. If you would like more information on this topic, its implications, or the market in general, call us today.