Nationally, single-family home construction is flatlining—consumers are laying down roots in urban settings to be closer to job centers, retail and entertainment, and more affordable multi-family housing. This trend has definitely played out in Seattle, which led the nation in home price growth for 21 months before being knocked to the second spot (at 12.8% growth) last month on the S&P/Case-Shiller report. Single-family home appreciation, economic and job growth, and rising rents are fueling condominium demand, and developers are finally responding.
A new trend has grabbed local headlines, as many projects introduced as apartments have pivoted to condominiums. Dean Jones, President & CEO of Realogics Sotheby’s International Realty, tracks new construction condominium deliveries closely, and says he’s excited by recent activity, but that “if just five or six percent of the people that have chosen to rent since 2010 decided to buy, we would be effectively sold out on a unit basis through 2023.”
So, what’s next? Jones says multi-family housing will remain concentrated to Seattle and larger Eastside cities—think Bellevue and Kirkland—with wood frame condo buildings making a comeback and perhaps a few more of those pivots, too.