Downtown Seattle Rents Rise for the First Time in 17 Months as Amazon Workers Go Back to the Office Full Time

Rhea-AI Summary

Downtown Seattle's apartment rents increased for the first time in 17 months, rising 2.5% year over year to $2,000 in December, according to Redfin. This uptick precedes Amazon's January policy requiring staff to work in-office five days a week.

Seattle's rental market has seen significant fluctuations: median asking rent peaked at nearly $2,500 pre-pandemic, dropped to $1,399 in February 2021, surged to $3,118 in August 2022, and then declined 36% due to increased apartment construction. Among Seattle's inner neighborhoods, Capitol Hill saw the highest increase (+7.2% to $1,825), while Queen Anne and South Lake Union experienced declines exceeding 13%.

The overall Seattle metro area saw a modest 0.5% increase to $2,017. On the east side, downtown Redmond rents rose 4.3% to $2,350, while downtown Bellevue decreased 3% to $2,579.

Positive

• First rent increase in downtown Seattle after 17 months of decline (+2.5% YoY)
• Capitol Hill neighborhood shows strong growth with 7.2% YoY rent increase
• Downtown Redmond demonstrates solid performance with 4.3% rent increase

Negative

• Significant rent declines in key areas: Queen Anne (-13.7%) and South Lake Union (-13.5%)
• Downtown Bellevue experiencing rent decrease (-3% YoY)
• Overall Seattle metro area showing minimal growth (+0.5% YoY)

Insights

Real Estate Market Analyst

The Seattle rental market is showing early signs of stabilization, with downtown rents increasing 2.5% YoY to $2,000, marking a pivotal shift after 17 months of decline. This trend reveals several critical insights for investors and market participants:

Market Dynamics & Investment Implications:

• The dramatic rental price fluctuation from $3,118 in August 2022 to current levels (a 36% decline) demonstrates the market's high volatility and sensitivity to supply-demand fundamentals.
• The substantial new apartment construction has created a supply buffer that's likely to moderate future rent growth, even as office occupancy increases.
• The divergent performance across submarkets (Capitol Hill +7.2% vs. South Lake Union -13.5%) suggests opportunities for tactical neighborhood-specific investments.

Forward-Looking Considerations:

• Amazon's five-day return-to-office mandate could trigger a redistribution of rental demand, potentially benefiting properties in transit-oriented locations.
• The relatively modest 0.5% metro-wide rent growth indicates that the market remains balanced, with new supply effectively absorbing increased demand.
• The east side markets of Redmond (+4.3%) and Bellevue (-3%) demonstrate that tech employment hubs are experiencing varying degrees of recovery.

This data suggests a market in transition, with opportunities for strategic positioning in submarkets showing early signs of recovery, while maintaining caution in areas with persistent oversupply.

Redfin reports the median asking rent for an apartment in downtown Seattle grew 2.5% year over year in December to $2,000—the first rise in 17 months.

SEATTLE--(BUSINESS WIRE)-- (NASDAQ: RDFN) — Downtown Seattle apartment rents grew for the first time in 17 months in December, rising 2.5% year over year to a median $2,000. That’s according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage.

The slight uptick in the median asking rent came ahead of the January implementation of Amazon’s return-to-work policy, requiring staff to work in the office five days a week.

Over the past few years, rent trends in downtown Seattle followed a similar pattern to the pandemic-era real estate cycle observed in many major metros.

After climbing to nearly $2,500 prior to the pandemic in 2020, the median asking rent for downtown Seattle fell all the way to $1,399 in February 2021 as Seattle’s tech-driven workforce moved away from the city center and transitioned to working from home. As offices started to re-open, demand increased and the median rent rose all the way to $3,118 in August 2022. Since then, rents have fallen by roughly 36% to where they are today thanks to a major uptick in apartment construction.

Too early to tell if Amazon’s return-to-work policy is impacting rents

In late 2024, Seattle-based tech company Amazon announced that all staff were required to work in the office five days a week from January 1, up from three days a week previously. Anecdotally, the increase in Amazon workers traveling downtown daily has led to longer commute times and heavier traffic on the roads over the first few weeks of the year.

But it remains to be seen whether the policy will impact rental demand.

Redfin Senior Economist Sheharyar Bokhari said it’s too early to tell whether Amazon’s return-to-work policy effected the uptick in Seattle’s downtown rents in December, given that most workers already live within commuting distance of their office.

“Seattle has been building more new apartments than almost any metro outside of the Sun Belt these past few years. That has helped keep rents in check—even after workers returned to hybrid or full-time office work following the pandemic,” Bokhari said. “But as new construction levels off and workers from large companies like Amazon increasingly expect their staff to work daily in downtown offices, rents may start ticking up in Seattle’s inner-ring neighborhoods where commuting is made easier.”

Capitol Hill rents rose 7.2%, while South Lake Union and Queen Anne fell more than 13%

Among Seattle’s inner neighborhoods, Capitol Hill rents rose the most in December, climbing 7.2% year over year to $1,825. Next came the Central District (+1.2%) and Westlake (+1%). (Note: This report only analyzed neighborhoods with sufficient data.)

Asking rents in Seattle’s inner neighborhoods

	Asking Rent (December)	Asking Rent YoY Change
Downtown Seattle	$2,000	+2.5%
Capitol Hill	$1,825	+7.2%
Central District	$1,895	+1.2%
Westlake	$2,265	+1%
Queen Anne	$1,981	-13.7%
South Lake Union	$2,385	-13.5%
Seattle Metro Area	$2,017	+0.5%

At the other end of the spectrum, Queen Anne (-13.7%) and South Lake Union (-13.5%) saw falls in asking rents in December, from a year earlier.

Results were mixed on the east side, where many of Seattle’s tech employees work. The median asking rent in downtown Redmond rose 4.3% to $2,350, but fell 3% in downtown Bellevue to $2,579.

For the overall Seattle metro area, the median asking rent was up 0.5% in December to $2,017.

To view the full report including charts and methodology, please visit: https://www.redfin.com/news/seattle-rent-report

About Redfin

Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, rentals, lending, and title insurance services. We run the country's #1 real estate brokerage site. Our customers can save thousands in fees while working with a top agent. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Our rentals business empowers millions nationwide to find apartments and houses for rent. Since launching in 2006, we've saved customers more than $1.6 billion in commissions. We serve approximately 100 markets across the U.S. and Canada and employ over 4,000 people.

Redfin’s subsidiaries and affiliated brands include: Bay Equity Home Loans®, Rent.™, Apartment Guide®, Title Forward® and WalkScore®.

For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the Redfin Data Center. To be added to Redfin's press release distribution list, email press@redfin.com. To view Redfin's press center, click here.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250129241784/en/

Redfin Journalist Services:

Kenneth Applewhaite

press@redfin.com

Source: Redfin

FAQ

How much did downtown Seattle rents increase in December 2023 (RDFN data)?

According to Redfin (RDFN), downtown Seattle rents increased by 2.5% year over year to $2,000 in December 2023.

Which Seattle neighborhood saw the highest rent increase in December 2023?

Capitol Hill saw the highest rent increase among Seattle's inner neighborhoods, with a 7.2% year-over-year rise to $1,825 in December 2023.

How much have downtown Seattle rents fallen from their August 2022 peak?

Downtown Seattle rents have fallen approximately 36% from their peak of $3,118 in August 2022 to $2,000 in December 2023.

What is the current median asking rent in the Seattle metro area according to RDFN?

The median asking rent in the overall Seattle metro area was $2,017 in December 2023, up 0.5% year over year.

How did east side rents perform in Redmond and Bellevue?

Downtown Redmond rents increased 4.3% to $2,350, while downtown Bellevue rents decreased 3% to $2,579.