August 19, 2016

Seattle remains in top 3 U.S. apartment markets

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Seattle's apartment market is a top performer nationwide, even though annual rent growth in July was the lowest in 18 months, according to Axiometrics, a market research and analysis firm.

Jay Denton, senior vice president of analytics for Axiometrics, said in a press release, “Seattle's performance is still in the top three among major markets. Job growth is generating robust demand, supply is manageable and occupancy is high. That's a winning formula for apartment owners and investors.”

Average monthly rents in Seattle decreased slightly in July from June, but they increased for the 11th straight month in Tacoma. Effective rent in the Seattle metro was 7 percent higher in July 2016 than in July 2015, while Tacoma's rent growth was 9.3 percent.

July's occupancy rates were lower than June's in Seattle and Tacoma.

The average rent was $1,809 in Seattle-Bellevue-Everett in July, $1,817 in June and $1,690 in July 2015. The average rent was $1,257 in Tacoma-Lakewood in July, $1,248 in June and $1,150 in July 2015.

Occupancy was 95.9 percent in Seattle-Bellevue-Everett in July, 96.3 percent in June and 96 percent in July 2015. Occupancy was 97 percent in Tacoma-Lakewood in July, 97.4 percent in June and 96.2 percent in July 2015.

Nationally, the average rent was $1,291 in July, $1,292 in June and $1,252 in July 2015.

Axiometrics said a lot of new supply is coming to the Seattle area, but job growth is more than enough to absorb additional units.

“Unless job growth slows significantly or there's a huge surge in supply, the market fundamentals look to remain robust in the near future,” Denton said.