September 28, 2026

Multifamily report: ‘Many projects simply no longer pencil'

Photo by Kevin Chen, via iStock [enlarge]

Despite a sizable development pipeline, the report says relatively few Seattle housing projects are moving into construction.

A growing number of developers are shelving their proposed apartment projects rather than extending timelines or holding entitlements until market conditions improve.

That's the finding of Kidder Mathews' Simon|Anderson Multifamily Team in its annual report on the region's apartment development pipeline.

The study looks at more than 500 apartment developments representing over 110,000 planned units across King, Pierce, Snohomish and Kitsap counties. The team follows projects under construction, approved and in review to offer an in-depth look at the region's activity.

Kidder Mathews says the report “points to a significant reset in the Puget Sound development pipeline,” with fewer projects in the approval or review pipeline from last year. For the region, the report estimates that 19,163 units are under construction, 12,931 approved, and about 78,925 are still in review, for a total pipeline of 111,019 units.

The report attributes the pullback to economics — higher construction and capital costs make new apartment projects hard to pencil out.

“This year's shift is less about weakening fundamentals and more about development math,” said Executive Vice President Dylan Simon, who leads the Simon|Anderson Multifamily Team with Jerrid Anderson. “At today's construction and capital costs, many projects simply no longer pencil. As the pipeline resets, we expect fewer deliveries in 2028 and beyond, creating favorable supply dynamics for the projects and sites that remain.”

The report found that developers in Seattle and King County are increasingly opting to cancel permitted projects, rather than carry entitlements indefinitely. Despite a sizable development pipeline, relatively few Seattle housing projects are moving into construction. About 6,578 units, or 5% of inventory, are under construction, while 8,996 units have been approved and another 26,299 remain under review.

Construction activity is up in Snohomish, Pierce and Kitsap counties; however, the inventory of approved projects saw a sharp decline, as projects either moved into the construction phase or were canceled. For those three counties, the report found about 6,000 units under construction but only around 1,100 units approved.

View the report at https://kidder.com/.