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“This has contributed to an oversupply of studios, both affordable and market rate.” โHowever, the studios and 1BRs would be the most challenging to lease due to the oversupply.โ โWhere previously sheer unit production was the emphasis, which would favor studios, maybe in the future we should be emphasizing something else like bedroom production.โ โThe greatest unmet need persists at 0โ30% AMI, both PSH and non-PSH. Some income bands (50โ80% and 80โ100% AMI) appear oversupplied in current projections, influenced by regional assumptions and rental market dynamics.โ โThis has resulted in some overlap of market and restricted affordable rent levels.โ โIn many of the non-central areas, restricted 80% AMI rents for studios and 1BR units is higher than actual median rents. More recently the same is also true in some areas even for units with two bedrooms or more.โ โThe median studio, 1BR, and 2BR market rate units in Seattle now rent for roughly 60-70% AMI.โ โBecause developers are finding they are having trouble leasing up over-supplied unit types, some are trying to get public funders to take on those projects (via master leasing) so the public absorbs the risk and financial loss instead of the developers who built the buildings.โ submitted by /u/Letter-Pirate |
