The Seattle and Puget Sound apartment markets have shown signs of revival, according to the latest market research released by Kidder Mathews’ multifamily team. Led by Dylan Simon and Jerrid Anderson, the team’s third-quarter report highlights key insights on rental rates, transactions, and vacancy rates.
Simon stated that with little new construction in sight, there is more liquidity in the real estate market which has brought about clarity on pricing. As a result, they expect sustained modest growth in rental rates as new supply continues to be absorbed.
The report reveals that rental rates have increased by 2% year-over-year in Puget Sound with most of this growth occurring within the last quarter. Transactions are also up significantly compared to last year both in terms of number and dollar volume.
While there was a slight increase in vacancy during the last quarter for certain product types and specific markets due to ongoing deliveries of new properties yet to be occupied; it is expected that with fewer projects under construction currently, this trend will reverse leading to lower vacancy rates and higher rental prices.
In summary,the Seattle apartment market is showing positive signs for investors as demand remains strong while supply remains limited. This bodes well for continued growth opportunities within this thriving real estate sector.
