Seattle-Tacoma Multifamily Market Report

Infrastructure upgrades strengthen long-term rental outlook. Overall construction activity is vigorous, with the metro reportedly hosting the highest number of cranes out of any major U.S. market in the first quarter of 2023. Public projects that are coming online will eventually provide tailwinds to the multifamily sector, which, in the meantime, is recalibrating to weaker rental demand and abrupt vacancy increases. Everett, for example, welcomed the completion of the Norton Cargo Terminal at its local port last December. Aside from creating 1,000 jobs by itself, the expansion coaxed move-ins from several third-party logistics firms and Tesla this year, with new hires bolstering the outlook for nearby rentals. The CBD also benefits from the modernization of Seattle's Waterfront. Upgraded public amenities may improve the attractiveness for physical office space in the core, in turn helping attract traditionally office-using firms and improving demand for local apartments as they hire.