Market Report
Seattle-Tacoma Multifamily Market Report
1Q 2026
City Center Seeks to Preserve Vacancy
Progress
While Tacoma Draws Increased Investor Interest
Leasing staying ahead of openings in supply-pressured neighborhoods. Vacancy has compressed since 2024 across the largest submarkets in Seattle proper and is likely to continue to a lesser extent this year. South Lake Union and Queen Anne both returned to around 4.0 percent vacancy rounding out last year, due to net absorption that accelerated past deliveries. However, some submarkets, such as Capitol Hill, the University District, and downtown Seattle, had concessions applied to around 25 percent of local units. Tapering deliveries should ease that pressure in the former areas, but downtown Seattle is slated to receive similar new stock this year. Demand drivers from population expansion and labor market growth are expected to soften overall, although the region’s AI industry presents some upside. The number of open tech positions in the metro has favored roles that require AI skills. If firms tied to creating and operating AI tools hire more, it could drive Class A demand in the metro’s tech hubs, including downtown.
TO READ THE FULL ARTICLE
