Seattle Multifamily Report – November 2022
After a very strong and long run, rents are dropping slightly.
Seattle rent evolution, click to enlarge
Seattle’s multifamily market still paints a picture of relative stability within a large market. Rent growth on a T3 basis turned negative after 18 consecutive months of sustained gains, down 0.3 percent as of September, to an overall average of $2,232, while the U.S. rate inched up 0.2 percent to $1,718. Robust deliveries have impacted occupancy, too, down 30 basis points in the 12 months ending in August, to 95.7 percent.
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Seattle sales volume and number of properties sold, click to enlarge
Seattle’s unemployment rate rose to 3.5 percent in August, from 2.6 percent in April, but fared better than the state and the U.S., both at 3.7 percent according to preliminary data from the Bureau of Labor Statistics. The job market expanded by a solid 6.0 percent in the 12 months ending in July, outperforming the nation by 150 basis points. All sectors added jobs, with about half of the 95,600 positions gained during this period being added to leisure and hospitality (19,800 jobs) and professional and business services (18,100 jobs). Information followed closely with 16,500 positions. Several companies expanded or are planning expansion in Seattle, including Amazon, Snapchat and Apple.
Development remained elevated, with 7,698 units delivered through September and 28,459 units underway, 8,206 of which broke ground this year. Meanwhile transaction activity surpassed the volume recorded during the same period last year, amounting to more than $3.2 billion. The price per unit continued to climb, up 6.1 percent year-over-year, to $388,379 in September.
