Kidder Mathews has released 2nd-quarter multifamily data, and while economic fundamentals are wavering nationally, the Puget Sound region continues to see rising rental rates, sustained low vacancy rates and strong investor demand.

“The start of 2022 was defined by a push/pull on either side of economic fundamentals: Low unemployment, yet not enough skilled workers; rising rental rates and housing unaffordablilty met with stabilizing occupancy; low Treasury rates hitting a wall of rate hikes,” said Dylan Simon, part of Kidder’s multifamily team along with Jerrid Anderson. “Nevertheless, the Puget Sound soldiered on, demonstrating economic resilience through the tumult.”

The report centered on the multifamily markets in King, Snohomish, Pierce and Kitsap counties, which enjoyed a solid first quarter before low interest rates and sales pricing tapered off. Kidder says despite the volatility, the region’s fundamentals are the strongest in the nation, and expects pricing to stabilize and remain solid as investors continue to seek a seat at the table in the market.