Seattle’s Rental Housing Construction Boom: What this means for local landlords
Current housing construction data provided by RentCafe shows 1.2 million new apartments added to the United States over the last three years. The trend is expected to continue through 2023 and into 2024, making it a peak time for new apartment construction with 460,860 rentals anticipated to be completed by December nationwide. The Seattle metro landed in the 2023 top 15 markets nationwide with an expected 10,167 new rental units to be completed by year end.
Let’s first look at how we got here.
The surge in construction is attributed to a growing number of new households driven by job growth and young adults moving out. The pandemic, along with remote work, prompted renters to seek more flexible and comfortable living spaces, which may suggest a move away from apartments and towards single family homes, however demand is holding in many metros. What was found is that the majority of new construction is high-end, targeting upper-middle and high-income renters.
Is the level of Seattle apartment construction expected to continue?
The report suggests that construction is likely to slow down after the completion of current projects due to tightening bank lending standards and rising costs of construction materials, labor, and land. The number of new apartment construction is expected to decrease by 15% year-over-year in 2025.
What does this mean for local Seattle landlords?
Competition. We’ve likely all felt the wave of rising rents over the last few years, however don’t expect it to continue at the same pace. With an extra 10,000+ high quality rental units available in the Seattle market, your units are now in direct competition with new construction. And while your property may not be physically located near these large complexes, Seattle renters now have multiple options to choose from.
What should Seattle rental property owners be doing to succeed in this market?
The property management experts at FELLOW Real Estate Services are taking the following steps and advising their clients on ways to best navigate this temporary market shift:
Offering added services and perks to residents to elevate their experience.
High-quality marketing of vacant properties: aggressive neighborhood canvassing, professional photography, convenient on-demand showings, attractive listings descriptions.
Updating units: fresh flooring, cabinetry, landscaping, and other upgrades can help your unit standout against the sea of high-end units coming on market.
Attempting to reduce turnover, even if it means adjusting rent increase expectations.
Instant responses to maintenance requests
This list is just a small glimpse into what you can be doing to ensure you don’t fall behind as a Seattle landlord. To learn how you can ensure your property is best positioned in the current market, schedule a time to talk with our team here.
