Average rents in Thurston County getting closer to $1,000 per month

Looking for an apartment in Thurston County? Be prepared to search and spend because vacancy rates are low and rents continue to rise, according to new apartment data released this week.

The first-quarter Apartment Insights of Seattle data show that the county’s vacancy rate has tightened to 3.1 percent and average rents rose to $971, a new high for the county, said Tom Cain, the company’s principal.

A year ago, the county’s vacancy rate was 4.3 percent and average rents were $893, he said.

A number of factors are driving the apartment market: job growth, people wanting to live here — particularly retirees — and low inventory for single-family homes. Unable to find a home, the first-time homebuyer might remain a renter until they can find something to buy.

The inventory for single-family residences in March was three months, meaning that at the current pace of sales the supply of residences on the market would be exhausted in that period, according to Northwest Multiple Listing Service data.

Unemployment was 6.3 percent in February, according to the state, while two senior housing projects recently were announced in the county: One is underway near River Ridge High School, and a 300-plus unit project has been proposed in Lacey at Carpenter Road and Pacific Avenue.

Sharon Goodman, director of residential and dining services at The Evergreen State College, said students wanting to live off-campus are encountering higher rents. Apartments also are harder to find — if they’re not planning ahead, she said.

On-campus housing remains popular, with occupancy rates at 92 percent for the year, Goodman said.

Although rents are higher and vacancy rates lower, it’s not a panic situation for students yet because those who choose to live off-campus are finding housing, she said.

Relief might be on the way in the form of more apartments, according to Apartment Insights.

In the Thurston-Pierce-Kitsap region, 1,456 units are under construction, most of which are in Thurston County, the data show. That’s up 200 units from the fourth quarter of 2015.

The multifamily project near River Ridge High School is planned to be 623 units, only a portion of which are reserved for seniors.

“The tight home sale market and moderate level of new apartment construction will help keep pressure on rentals,” Cain said.

Apartments Insights surveyed 91 properties in Thurston County that were 50 or more units, across all apartment sizes.

This story was originally published April 6, 2016 at 4:11 PM with the headline "Average rents in Thurston County getting closer to $1,000 per month."