Why The Seattle Economy Will Sustain Its Apartment Market
Colliers International VP Dylan Simon tells us that overall economic uncertainty is the order of the day, considering the unknowns of the new administration. But Seattle's economy is probably strong enough to keep demand for apartments robust in the near term.
Seattle and the Pacific Northwest have and will likely continue to outpace the nation economically—especially when it comes to job growth and wage inflation, which will drive demand for apartments. "Even in a rising rate environment, a tight apartment market ensures investor demand, which always places downward pressure on cap rates," Dylan says.
Another important growth consideration for the Puget Sound economy is trade, especially the fact that Washington state exports more to China than any other state ($15.3B in 2014). NAFTA and the Trans-Pacific-Partnership were hot topics during the election cycle, and that's got Dylan a little concerned.
"The depth of these trade partnerships extends beyond China to many of the remainder of Asian Pacific Rim countries. US trade policy taking a more protectionist tone may have a disproportionate impact on Seattle and the Pacific Northwest, especially our thriving industrial ports and distribution centers," he tells us.
Yet, the strength of Seattle as an innovation center and focal point for global investment helps ensure economic stability despite uncertainties created by the election results, Dylan adds.
Find out more about the future of the Seattle apartment market at our Seattle Multifamily event beginning at 7:30am on Dec. 14 at the Westin Seattle. Sign up here.