Study Shows Seattle Foreclosures Affect Home Rental Market

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A recent study showed that it is not only rental rates that matter when it comes to deciding which cities are the most tenant friendly. Other factors, including Seattle foreclosures laws, are believed to also play roles in the condition of an area's rental housing market. The report ranked the city considerably lower than its initial ranking based on another research study.

Washington foreclosures, just like in other states of the U.S., created major problems for the state's housing industry. With the residential property market being weighed down by the high number of foreclosed properties, it is inevitable that every factor related to foreclosure will affect every housing market sector, including rental properties.

According to the research report by Software Advice's Chris Thorman, Seattle is 18th nationwide in terms of being renter-friendly. This might be partly due to the state of Washington being significantly affected by the foreclosure crisis, with bank foreclosures, like Wachovia homes for sale, accounting for a considerable percentage of residential sales in the area.

The study from the software firm based the ranking, not just on property prices and rates of rent, but also on other factors such as vacancy rates, tenant-related Seattle foreclosures regulations, rent control rules and the presence of tenant councils in the city. With these factors included in the criteria, Seattle came in below the top ten and ended at number 18.

Another report with a similar focus published a month ago ranked Seattle as the third city in terms of rent affordability. The previous study stated that the amount required to own a house in the city is higher than renting, even with the presence of numerous house foreclosures sale. This is a far cry from the Thorman study that has been released just recently.

The latest research gave Chicago a very high ranking, while San Francisco and New York, two cities that are considered very tenant-friendly, were ranked below Seattle. The difference between the two studies, according to real estate analysts, lie in the criteria used for ranking.

When it comes to choosing the city that would be most ideal for a renter, some real estate market observers believe that the prices of residences and the rate of rent might not be enough, and that regulations governing Seattle foreclosures and the presence of councils for renters are also factors that should be looked into.