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Market Report

Seattle-Tacoma Multifamily
Market Report

2024 Investment Forecast

Lower Cost-of-Living in Downtown Seattle
And Tacoma Lifts Local Household Counts

Improved affordability encourages renting. Seattle-Tacoma is poised to record a substantial increase in new households this year, adding a decade-long high of 26,000 to the marketwide total. A combination of lower rents compared to 2022 and continued wage growth have created opportunities for younger professionals who previously shared living spaces or moved home with their families to seek their own accommodations. This shift is particularly evident in areas where rental stock and concessions usage have meaningfully increased and rents have declined as of late. Downtown Seattle, for instance, recorded a notable decline in its Class A vacancy rate last year, accompanied by a near-2 percent drop in the local sector’s mean effective rent. The completion of 4,600 units in this area by 2025 will require operators to continue leaning on concessions when attempting to attract younger residents to the high-end rental market. This trend is also being observed in Capitol Hill-Central District and the northern portions of Tacoma, where local inventories are slated to expand by over 10 percent this year. Conversely, a larger portion of new rental supply shifting away from Seattle’s east side and Bellevue may sustain higher levels of rent growth in these neighborhoods. As a result, a greater number of younger and more budget-conscious renters may find northern Tacoma and Seattle’s core to be increasingly attractive to reside in, supporting local apartment demand.

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