Seattle-Tacoma Multifamily Market Report

Fewer deliveries aid premium rentals. Leasing activity softened to start 2025 amid slowing job growth. The Class C segment saw the sharpest pullback in renter demand, especially in Downtown Seattle and Capitol Hill. In contrast, demand for Class A units held steadier, particularly in Queen Anne and the University District, where supply pressure remains modest. A steep drop in deliveries this year should alleviate higher-tier vacancy pressures in Capitol Hill, while rising completions may weigh on Downtown. Elsewhere, a construction slowdown in Shoreline is likely to help fi rm up fundamentals. In North Tacoma, vacancy continued to tighten in early 2025 even amid elevated new supply, pointing to steady demand for modern, attainable housing. Looking ahead, declining new supply in key submarkets should support rent growth despite economic headwinds.