Seattle Multifamily Report – Summer 2019
There were more than 21,500 multifamily units under construction as of June, with 8,131 expected to come online by December.
Seattle rent evolution, click to enlarge
Seattle’s multifamily market continues to show strong fundamentals, exceeding national averages for most indicators. Along with a healthy economy and robust population growth, the metro is recording impressive investment activity and steady apartment absorption despite a strong development pipeline.
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Seattle gained nearly 50,000 jobs in the 12 months ending in May for a 2.5 percent expansion, outperforming the 1.6 percent U.S. figure. While education and health services led growth, manufacturing has rebounded, with the sector gaining 7,700 positions. Home not only to Amazon but also Google, Facebook and many other tech companies, Seattle remains a tech juggernaut, adding high-paying jobs at a fast pace. The information sector gained 5,700 positions for a strong 5.0 percent expansion in the 12 months ending in May.
Seattle sales volume and number of properties sold, click to enlarge
Although developers remain extremely busy, absorption is keeping up and there is little risk of overbuilding. There were more than 21,500 units under construction as of June, with 8,131 expected to come online by December, in addition to the 6,314 apartments delivered in this year’s first two quarters. And although development is slated to hit another cycle peak, we expect the average Seattle rent to advance 3.9 percent in 2019.
