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Market Report

Seattle-Tacoma Multifamily Market Report

2024 Investment Forecast

Those Facing Affordability Challenges Receive
Supply-Induced Relief, Lifting Household Count

Lower cost-of-living facilitates more renting. The metro is on track to add a decade-long high of 26,000 new households this year. Easing multifamily rents and continued wage growth are enabling many younger residents who have previously doubled up or lived at home to seek new living situations. Locations observing supply-induced rent reductions are at the center of this trend. Downtown Seattle, for example, was the metro’s only submarket to record a notable vacancy ease last year, coinciding with a 2 percent drop in the local mean effective rent. The 4,600 units slated for completion here through 2025 will serve as an additional short-term roadblock for rent growth, while supporting more young professionals entering the local high-end renter pool. This trend is also taking place in Capitol Hill-Central District and northern Tacoma, amid over-10 percent expansions in their local inventories this year. A larger portion of supply shifting away from Seattle’s east side may, in contrast, sustain rent growth across these neighborhoods. This trend could direct a larger portion of younger, median-wage renters into northern Tacoma and Seattle’s core as they each become comparatively more affordable.
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