Seattle’s multifamily fundamentals remained tepid through the first three quarters of 2023, with contracted supply and investment activities and limited positive rent movement. In line with seasonal patterns and after five straight months of slight gains, rent growth dropped back into negative territory, down 0.3 percent on a trailing three-month basis through September, to $2,186. Yet demand remained healthy, with the annual occupancy rate in stabilized properties staying flat, at 95.4 percent in August.
Seattle unemployment rose to 3.8 percent in August, according to data from the Bureau of Labor Statistics, up from the low 3.0 percent rate it maintained for most of the year. The figure was on par with the U.S. and trailed the 3.6 percent state average. Meanwhile, in the 12 months ending in July, the employment market added 50,900 jobs, up 3.6 percent. Although it remained on a downward trend, it was 100 basis points ahead of the national rate. Information was the only sector to contract, down by 8,700 positions. Leading job growth were leisure and hospitality and education and health services, accounting for more than half the jobs gained during the period. Despite challenges, the professional and business services sector expanded by 3,000 jobs.
Developers delivered 3,613 units and had 32,000 units under construction, but the ongoing financing woes halved the volume of new projects. Meanwhile, total investment plummeted to just $654 million through September, for a $332,985 per-unit price.
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