Demand Powers Rent Growth, Occupancy
Seattle’s multifamily fundamentals stood on solid footing in the middle of 2024’s second quarter, with strong demand that sustained rent growth. The average advertised asking rent improved for three consecutive months this year, up 0.6% on a trailing three-month basis through May, to $2,205, while year-over-year growth was 1.1%, outpacing the 0.6% national rate, according to the U.S. multifamily market report. Last year’s limited delivery volume kept occupancy in check, with the metro posting just a 20-basis-point downtick year-over-year, to 95.0%, as of April, notes the latest Yardi Matrix Seattle multifamily market report.
Seattle made it into the top 10 on Oxford Economics’ Global Cities Index 2024 ranking, thanks to its economic strength. Mirroring the national trend, the metro’s employment market softened, up 0.9% in the 12 months ending in March, trailing the U.S. rate by 50 basis points. Of the 21,000 positions gained during the period, about half were added in the government sector (13,200 jobs). Meanwhile, four sectors contracted for a combined 14,900 jobs, with information (7,300 jobs) recording the largest loss.
In 2024 through May, developers delivered 4,282 units and had a pipeline with 24,910 units under construction. New construction nearly came to a halt, with just 203 units breaking ground during the first five months of the year. Meanwhile, investment volume remained tepid, with $244 million in multifamily transactions recorded through May. The average price per unit declined 16.7% year-over-year, to $265,933, in May.
Read the full Yardi Matrix Seattle Multifamily Market Report July 2024
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