While the housing market soared, the rental market in Bellingham hit a soft spot. Although there is always high demand in Bellingham for rentals due to WWU, in the past several years low interest rates and an array of mortgage products including zero down mortgages allowed more people to purchase homes rather then rent.

However, with interest rates rising and much higher housing prices, renting is starting to be the better option for some again. And there is an interesting new twist in the Bellingham market: many upper end homes are available for rent right now giving renters the opportunity to live in very nice homes for far less than the mortgage on such a house would be. Many people who want to retire in Bellingham a few years from now have bought homes now with the intention of renting them until they can move up here.