Sunday, Oct. 12, 2008

Tri-City apartment market holds steady

Ingrid Stegemoeller, Herald staff writer

The apartment rental market in the Tri-Cities appears to be going strong as mortgage lending standards remain tight and the area continues to absorb the addition of several complexes built a few years ago.

An informal survey by Crown Property Management in September shows the occupancy rate for all three cities is 97 percent, which is about even with the survey conducted six months ago.

In the March study, Richland apartments were 97 percent occupied while units in Kennewick and Pasco were 96 percent full.

"I think that we're still seeing a reflection of what has gone on in the housing market in that fewer people are qualifying for homes," said Jolene DeGarmo, multi-site property manager for Crown. "More people are in the apartment market."

High demand for units also has led to about a 4 percent average increase in rent in all three cities since March, according to the report.

A one-bedroom apartment in Kennewick now rents for about $542, up nearly 6 percent from $513 in March.

In Pasco, rent for a one-bedroom averages about $572, almost 9 percent higher than the $526 average in March.

And one-bedroom rent is up more than 5 percent in Richland, from $605 in March to $637 in September.

Robert Young, who owns several apartment complexes in the Tri-Cities, called the local market "fairly stable."

"Of all the bad news in the economy, the one little bright light that flickers is the apartment rental business," he said.

Young doesn't anticipate more apartment buildings going up in the Tri-Cities anytime soon.

The area is recovering from an apartment building boom a few years ago, he said.

Occupancy rates haven't consistently topped 95 percent since about six years ago, according to the report.

At Riverpointe Apartments in Richland, occupancy has averaged about 97 percent for the last six months, said manager Bobbi Sabin.

Hanford employees have kept the complex's 228 units full, she said.

And units at McMurray Park apartments in Richland are as in demand as ever, said manager Nancy Williams.

The complex, which has 100 apartments, has been running at 93 percent to 97 percent occupied for the last six months, which is fairly standard since Williams started working there 21/2 years ago, she said.

"I haven't noticed much of a difference," Williams said. "I know the market's been kind of tight."

McMurray Park is a Section 42 complex, which means household income must fall in a certain range in order for people to live there, Williams said of the family-oriented apartments.

"It was set up to provide a nice place for people who don't make a lot of money and are trying to improve their lifestyle," she said.