by Calculated Risk on 3/19/2010 08:28:00 AM

From Vanessa Ho at Seattlepi.com: Renters, rejoice: Apartments are cheap and the iPod is free (ht Patrick)

"We've done holiday specials -- a one-night stay in a downtown hotel - or an iPod nano," said [Craig Dwyer, vice-president of Seattle-based Pinnacle Family of Companies] residential division. "We've done a microwave. We even did a 32-inch flat panel TV."

After peaking in 2006 and 2007, rents in King, Snohomish and Pierce counties tanked over the course of last year by nearly 4 percent, according to [Mike Scott, whose firm, Dupre + Scott, researches the Puget Sound apartment market]. He expects rents will continue to plummet this year by 5 percent, and again in 2011, but less dramatically.

In Seattle, property managers say that trend has been more pronounced, with some rents dropping as much as 15 to 20 percent last year. ... Bart Flora, co-owner of Cornell & Associates, which manages 6,500 properties in the city, said some, in-city, one-bedroom apartment now rent for $800 to $850, instead of roughly $1,000 two years ago.

"It's the steepest drop I've ever encountered in 25 years, certainly in my career," said Flora. He added that he believed the market - at least in Seattle - appears to have hit bottom and is stabilizing.

I'm starting to hear stories about vacancy rates stabilizing in some markets, although rents are probably still falling in most areas. This will keep pressure on CPI and house prices.