Seattle and the Puget Sound region may experience the development of as many as 100,000 new apartments unit during the market expansion spanning 2010 through 2020, according to Colliers International data, based on the current pipeline.
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Such an increase in apartment inventory rivals the building boom that occurred 1985 through 1993, said Colliers International senior vice president Dylan Simon, when over 80,000 apartment units were built in the region.
However, the current expansion cycle is not quite the same as the previous one, Simon said. Two key market characteristics differentiate the cycles.
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For one thing, the clear majority of development in the 1980s occurred in the suburbs. In the current market cycle, over 70% of new apartment development is urban-focused. Also, although this cycle contains 25% more development than the last development cycle, the region’s population increased by 70% in the last 30 years, making the region well-poised to absorb a large amount of supply.
"Every submarket in the region boasts positive rent growth year-over-year, despite the delivery of nearly 50,000 new apartment units," Simon said. "As the market is set to receive another 50,000 or more units, closely following market fundamentals is more important than ever."
Curious about what else lies in store for Seattle? Join us at our Seattle Forecast 2017 event Thursday at the Four Seasons Hotel Seattle.
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