Apartment Pipeline Represents a Potential 40% Increase

The apartment development pipeline in the Puget Sound region comprises more than 130,000 units, according to new market research released by Dylan Simon and Jerrid Anderson of Kidder Mathews. This latest market report covers apartment buildings under development with 10 or more units in King, Snohomish, Pierce and Kitsap counties.

Although delivery dates vary based on the status of each project, the current pipeline represents a potential 40 percent increase to the region’s existing apartment inventory in the next decade.

“Given that we are in unprecedented times, we conducted this research with two key considerations top of mind,” said Simon. “The first is that the global health crisis will undoubtedly impact apartment fundamentals and change many of the plans developers made prior to 2020. And second, Seattle is an extremely resilient market, so analyzing this data is the best method for investors to plan for success in the long term.”

Last year’s report forecast a slowdown, with fewer apartment units delivered and developments having received permitting. In 2021, the region is experiencing some of the slowdown effects with fewer units delivered year-over-year than in previous years and lower construction starts. Where the market has not slowed is in delivering permitted development sites, says the report.