The Seattle and Puget Sound apartment market has seen continued stability, with investor confidence rebuilding and fundamentals strengthening across the region, according to a recent report by Kidder Mathews.

“We’re entering a phase of steady, sustainable growth,” said Dylan Simon, Executive Vice President. “Investors are re-engaging, drawn by clearer pricing and improved capital conditions. Leasing performance remains healthy, vacancy is trending down, and the data shows a market that’s regaining momentum heading into 2026.”

Investment activity in the region accelerated this past quarter, with $1.8 billion in sales, and transaction volume increased by more than 30% year-over-year. Cap rates held steady, averaging in the mid-5% range, reflecting balanced buyer-seller expectations. Vacancy in the area tightened, down 30 basis points year-over-year to about 7.0%, signaling steady absorption of new supply.

Regional rent averages reached $2,061, supported by job growth and continued in-migration, and leasing remains strong, with consistent activity across most submarkets, underscoring stable demand from renters heading into 2026.