Seattle-Tacoma Multifamily Market Report

Demand begins to recover as historic supply wave approaches. Despite the market’s recent challenges, including the tech sector losing 11,500 jobs through the 12 months ended in June, rental demand is gaining momentum. Nearly 2,400 apartments were absorbed on net over the first half of this year, offsetting net relinquishments during the final six months of 2022. The recent improvement in apartment demand is an encouraging sign, especially after weaker absorption gave rise to a 190-basis-point climb in vacancy last year. On the supply side, however, deliveries are slated to pick up over the second half of 2023 and accelerate in 2024, outstripping demand expectations. Next year, over 20,000 units are slated for completion. This volume would nearly double the market’s prior high and increase the likelihood of vacancy elevation over the mid-term.