Seattle-Tacoma Multifamily
Market Report

Leasing outpacing openings in supply-pressured submarkets. Vacancy has compressed since 2024 across the largest submarkets in Seattle proper and is likely to continue to a lesser extent this year. South Lake Union and Queen Anne both returned to around 4.0 percent vacancy rounding out last year, as net absorption accelerated past deliveries. However, some submarkets, such as Capitol Hill, the University District, and Downtown Seattle, had concessions applied to around 25 percent of local units. Tapering deliveries should ease that pressure in the former areas, but Downtown Seattle is slated to receive similar new stock this year, which could weigh on local fundamentals. Demand drivers from population expansion and labor market growth are expected to soften overall, although the region’s AI industry presents some upside. The number of open tech positions in the metro has favored roles that require AI skills. Hiring increases among firms related to creating and operating AI tools could drive Class A demand in metro areas where tech firms concentrate, including the Eastside.