What Is The Future for the Greater Seattle Rental Market in 2024?

As an investor, you want to ensure your multi-family property in the Seattle area will be as profitable as possible. So, it stands to reason that keeping an eye on the housing investment market predictions for 2024 is crucial.

At Powell Property Management, we're keenly observing the trends and shifts and using our 100 years of experience as investment property managers to help investors navigate the evolving market conditions. We’re excited to share our insights and what we see on the horizon, helping you make informed decisions in this ever-changing market.

Setting rent prices in and around Seattle differs from surrounding areas in the state and nation. Renters interested in Seattle will pay more for the convenience and opportunity to live near the action. In 2024, the average rent in Washington state is $1,950 for a two-bedroom apartment, whereas the average rent in Seattle is $2,500 for a comparable space. 

Rent prices in metro Seattle are set to rise much slower in 2024 compared to 2023. Rent is projected to level out in the following couple of years as many new multi-family apartment buildings conclude construction, setting the stage for an increase in rent of only 3% in 2024. 

This, along with rising mortgage rates, could dampen demand for individual homebuyers and take some teeth out of the current seller’s market for property in the area. This trend means more people will be staying in their rentals as opposed to purchasing a home, keeping demand steady; which is great news for multi-family property investors. 

Rent Increase Caps

Many of our multi-family property investors have noted the recent movement in our area to codify and cap rent increases and have looked to us for guidance as we strategically balance the market conditions with local requirements and profits in mind. For example, current rules in King County state that you cannot increase rent by more than 10% without at least 60 days’ notice within a 12-month period. A local expert, such as a property manager, can help you legally assess and address rent increases according to the jurisdiction in which your property is located. 

Up and Coming Multi-Family Property Markets Near Seattle

Multi-family property investment groups are beginning to take a more serious look outside the city, and for good reason. Many renters are expanding their search outside of the Seattle city limits to find more affordable rental markets. Burien, Normandy Park, Des Moines, Tukwila, and other South Puget Sound cities are experiencing increasingly robust rental markets for young families and professionals as working from home has continued post-pandemic. This is to say that it's a great time to lock in now on multi-family properties in the metro area as demand for rental units rises, increasing rental prices. 

Is 2024 a Good Time to Invest in Multi-Family Properties in Seattle?

Seattle continues to top the list of the fastest-growing major cities in the country in 2024. As more professionals and families move to the city, demand for rental units in multi-family properties will continue to increase.

However, there is competition due to low inventory of investment properties. In other words, as you search for your next investment property in Seattle or the South Puget Sound area, you would benefit from swift decision-making to avoid losing a property to a competitor. Take advantage of the ever-increasing migration to Seattle and the growing popularity of the South Puget Sound area and lock in your investment.

Let Powell Property Management Do the Heavy Lifting

Investing in Seattle multi-family properties is a smart addition to your portfolio. There are several ways to increase your return on your investment; one of which is hiring a property management professional. Expert property managers like Powell Property Management have the experience and skill to provide premium support to you and your tenants on day one. Our insight, expertise, resources, and professionalism will increase your profitability in 2024 and beyond. We’d love to talk more about how Powell can elevate your Seattle area investment properties. Let’s connect today.