Seattle, WA

Market Update

Seattle's population has shown a robust upward trend, increasing by approximately 2.5% year-over-year to reach about 4.1 million in 2024. This growth is supported by a net migration of over 61,000 residents, which contributes to a diverse and expanding labor market. The median household income stands at $112,388, with an unemployment rate of 4.7%, indicating a relatively stable economic environment. The average weekly wage is about $2,289, and the renter share is significant at 41.6%, highlighting strong demand for housing in the region.

In the multifamily sector, the HUD Fair Market Rent for a two-bedroom unit is $2,671, which serves as a subsidy benchmark below the actual median gross rent of $2,050. Year-over-year multifamily rent growth has been measured at 2.6%, suggesting a moderate increase in rental prices. However, this growth is slightly below the national median of 3.5%, indicating some challenges in affordability. The current asking rents for various unit types reflect a competitive market, with studio apartments listed at $2,238 and three-bedroom units reaching $3,521.

Over the trailing 24 months, the Seattle market has recorded 649 transactions with a total volume of approximately $3.34 billion and a median price per unit of $305,625. The multifamily cap rate remains at 5.7%, which is about 134 basis points tighter than the national median of 7.04%. This compression in cap rates, alongside a significant price per unit premium of 53% compared to the national benchmark, underscores the market's strong investment appeal. As reported by CBRE Research, the multifamily sector continues to attract interest, driven by the region's demographic trends and economic resilience.