Struggling to find a Tri-Cities apartment you can afford? Here’s good news, for a change

The economics of renting have not been friendly to Tri-Citians who live in apartments in recent years.

Population growth and job creation have pushed up demand for rental housing and along with it, rents. Just a year ago, economists said nearly half of all renters were paying more of their income toward housing than they should.

A new report suggests the picture is improving, at least a little.

Apartment List, which researches trends in the multifamily industry, reports the average Kennewick rent rose 0.7 percent in March, compared to a year ago while the average Richland rent rose 1.8 percent.

Cooling trend

It’s part of a larger cooling trend that has seen rental growth east back from the 2014-2017 period.

Rent increases may be painful, but in 2019, they’re below the 2 percent inflation rate and below the 3.2 percent increase in average hourly earnings. Better still for Tri-Citians, local rents increased at a slower rate than the state, where the average increase was 1.7 percent.

“This moderation in rent growth relative to income growth has provided a welcome bit of relief as millions of our nation’s renters continue to struggle with housing affordability,” it said.

The median rent for a one bedroom apartment in Washington was $1,165 per month. For Kennewick, it was $791. For Richland, it was $818. Pasco figures were not available.

Pressure from rising demand

It’s no secret Tri-City renters have struggled with rising rents and a tight market.

As recent Census figures show, the Mid-Columbia population stood at nearly 300,000 people in 2018. The four cities that comprise the Tri-Cities added more than 36,000 people between 2010 and 2018.

The Washington Employment Security Department reports the Tri-Cities added nearly 8,000 jobs in the past two years, further driving up demand for all types of housing.

The result is one of the tightest rental markets in Washington.

The Runstad Department of Real Estate at the University of Washington said the Benton-Franklin area recorded the state’s greatest decline in vacancy rates in its biannual survey last fall.

Its survey of 10,500 units found a vacancy rate of just 2.56 percent. It was tighter still for one bedroom units (2.4 percent) and two bedroom units (2.2 percent).

There were just 273 units available, it reported.

Hammers bring relief?

The statewide vacancy rate was 4.3 percent.

Tri-City builders are responding with new development.

The city of Richland has approved 382 new apartments so far in 2019, including the lower-income, tax credit-financed Copper Mountain project. The 276 units are under construction at 2555 Bella Coola Lane in the Badger Mountain South area.

Also, 106 higher-end units are going in at Park Place at 650 George Washington Way.

The city previously issued permits for the final 240 units of the 640-unit Badger Canyon Apartments in 2018.

Neither Pasco nor Kennewick has approved any permits for multifamily projects this year.

What’s happening in other cities?

Don’t blame Seattle for the state’s median rental increase of 1.7 percent.

ApartmentList said the city’s median rent rose only 1 percent over the year, pushing the cost to lease a one-bedroom apartment to $1,340 a month.

Elsewhere, rent rose 12.6 percent in Bellevue, 1.9 percent in Bellingham, 3 percent in Everett, 2.8 percent in Kirkland, 2.1 percent in Lacey, 3.8 percent in Puyallup and 1.6 percent in Tacoma.

This story was originally published June 1, 2019 at 5:33 PM.