The region entered Q2 2026 with stronger operating fundamentals, but a still-cautious investment market. Specifically, tightening vacancy and modest rent growth supported asset performance, while stable pricing and cap rates pointed to a market finding equilibrium.
Investment activity remained subdued across the Puget Sound region in Q2 2026 with 47 multifamily transactions totaling $543 million in volume. Although deal flow remained well below historical norms, transaction volume fell nearly 20% from the prior quarter, suggesting that buyers continued to pursue opportunities selectively, despite a more cautious investment environment.
Meanwhile, Puget Sound’s operating fundamentals improved further in Q2 2026 with vacancy declining to 6.7% while average rent increased to $2,009. This combination of tightening occupancy and continued absorption of available supply drove modest rent growth, thus supporting a stable leasing environment across the region.
Pricing also improved modestly during Q2 2026 with average values increasing to $245,000 per unit and $334 per square foot. Finally, cap rates held steady at 5.7%, indicating that market pricing continued to stabilize as buyers and sellers found greater alignment on asset values.
SEATTLE
Seattle’s investment and operating fundamentals remained stable in Q2 2026. Although transaction activity stayed below historical levels, pricing strengthened, vacancy continued to improve and steady demand supported healthy leasing conditions.
- Sales Insight
Seattle recorded 24 multifamily transactions totaling $245 million in Q2 2026, reflecting a slower pace of transaction activity than a year earlier, but nevertheless an improvement in dollar volume from Q1 2026. Pricing also strengthened during the quarter with average values rising to $285,000 per unit and $405 per square foot. Cap rates increased to 5.7% from last quarter. - Rent/Vacancy Insight
Seattle’s operating fundamentals remained relatively stable during the quarter: Average rent reached $2,064 (or $3.14 per square foot), while vacancy declined to 6.9% to continue its gradual improvement from prior quarters. In this case, the combination of tighter occupancy and only modest rent movement signals a market where demand continued to absorb available supply without driving significant pricing growth.
NORTH KING
Although transaction volume remained limited, the quarter’s institutional sale suggests demand persists for high-quality assets. At the same time, tighter vacancy and rising rents indicate that leasing conditions continued to improve.
- Sales Insight
North King recorded just one multifamily sale in Q2 2026. However, that transaction totaled $78 million, representing a significantly larger transaction than those that closed throughout the last year. Here, average pricing increased to $332,000 per unit and $316 per square foot, while cap rates compressed to 4.8%. Granted, limited transaction volume makes quarter-to-quarter comparisons less reliable, but the sale suggests investors remain willing to compete for well-located institutional assets despite subdued transaction activity. - Rent/Vacancy Insight
North King’s leasing market continued to recover in Q2 2026 after building on the gradual improvement seen during recent quarters. In particular, vacancy fell to 8.2% while rents slowly edged higher as landlords gained modest pricing power and available inventory became more balanced.
EAST KING
East King remained one of the region’s strongest operating markets in Q2 2026. Despite limited investment activity, healthy leasing fundamentals and resilient transaction pricing pointed to continued confidence in well-located assets
- Sales Insight
Transaction activity remained tepid in East King during Q2 2026 with just one sale totaling $11 million. As such, average pricing reached $432,00 per unit, while price per square foot declined to $258, reflecting the mix of assets that traded. - Rent/Vacancy Insight
East King strengthened noticeably in Q2 2026 with vacancy falling to 5.9% – the lowest level among the Puget Sound submarkets. Accordingly, landlords also achieved modest rent growth with average rent increasing to $2,575 (or $2.94 per square foot). This combination of tightening occupancy and rising rents is an example of continued demand for apartments in one of the region’s strongest-performing markets.
SOUTH KING
South King continued to exhibit balanced market conditions in Q2 2026. Namely, leasing fundamentals improved, but elevated cap rates and muted transaction activity imply that investors remained disciplined in their underwriting.
- Sales Insight
Compared with the same period last year, South King sales activity slowed, with seven transactions totaling $23 million. Price per unit declined modestly to $191,000, while price per square foot increased 12% to $272, likely reflecting differences in the assets that traded. Cap rates rose to 6.1% from 5.7% the prior quarter. - Rent/Vacancy Insight
Demand continued to keep pace with available supply in South King during Q2 2026 with vacancy improving to 6.2% and average rent reaching $1,821. These trends point to a market that remained fundamentally balanced with steady leasing activity supporting modest pricing gains.
SNOHOMISH
Snohomish remained one of the region’s more balanced multifamily markets in Q2 2026. Consistent resident demand supported stable occupancy, while lower cap rates suggest continued investor demand despite mixed pricing metrics.
- Sales Insight
Snohomish maintained relatively steady transaction activity during the quarter with 10 multifamily sales totaling $162 million in volume. Here, average pricing reached $224,000 per unit, while price per square foot declined to $232, reflecting a different mix of assets than the prior quarter. Cap rates also compressed to 5.1%, hinting that investors showed greater willingness to accept lower in-place yields for assets in the submarket. - Rent/Vacancy Insight
Snohomish’s leasing fundamentals changed little in Q2 2026 with vacancy holding steady at 6.1%. Additionally, average rent increased modestly to $1,921, while rent per square foot reached $2.22. Stable occupancy combined with slight rent growth points to a balanced market with consistent resident demand.
PIERCE
Pierce County remained in a period of adjustment during Q2 2026. More precisely, leasing fundamentals improved modestly, while limited investment activity and elevated cap rates suggest that investors continued to approach the market cautiously.
- Sales Insight
Pierce’s second quarter highlighted the challenge of drawing broad conclusions from a thin transaction market. That’s because while pricing metrics rebounded from Q1, the small number of sales denotes investors who remained cautious, thus causing individual transactions to carry greater influence than reported averages. - Rent/Vacancy Insight
Demand showed signs of improvement in Pierce during Q2 2026, thereby helping vacancy decline to 7.3% after increasing in the previous quarter. Additionally, average rent reached $1,671 (or $2 per square foot), showing that the market regained stability as leasing conditions strengthened modestly.
KITSAP
Kitsap combined improving leasing fundamentals with a limited resumption of investment activity in Q2 2026. Tightening vacancy and modest rent growth reflected strengthening demand, while the quarter’s single sale demonstrated that quality assets still attract buyers.
- Sales Insight
Kitsap saw one multifamily transaction close in Q2 2026 to generate $17 million in sales volume after no transactions occurred in the prior quarter. That said, the property’s size and quality pushed average pricing up to $240,000 per unit and $273 per square foot, although a single sale provides only a limited indication of broader market values. Cap rate data was not reported for the quarter. - Rent/Vacancy Insight
Kitsap posted the strongest quarter-over-quarter occupancy improvement in the region during Q2 2026 with vacancy falling to 7.0% from 7.9%. Average rent also increased modestly to $1,880, while rent per square foot edged up to $2.19. The combination of tighter occupancy and modest rent growth indicates that landlords gained incremental pricing power as leasing conditions improved.
About the Simon | Anderson Multifamily Team
The apartment brokerage team led by Dylan Simon and Jerrid Anderson of Kidder Mathews represents apartment investors, developers, and landowners in the sale and purchase of apartment buildings and development land across the entire State of Washington. The team of 15 brokerage professionals specializes in the sale and purchasing of apartment buildings and development land from $1 million to more than $100 million. For more information, visit simonandersonteam.com.
About Kidder Mathews
Kidder Mathews is the largest fully independent commercial real estate firm in the Western U.S., with over 900 professionals in 20 offices across Washington, Oregon, California, Nevada, Arizona, and Texas. We offer a complete range of brokerage, appraisal, asset services, consulting, and debt & equity finance services for all property types. Kidder Mathews averages $9 billion in transaction volume, manages 55 million square feet of space, and conducts nearly 2,700 appraisal, consulting, and cost segregation assignments annually. For more information, visit kidder.com.
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Contact
Simon | Anderson Multifamily Investments Team
Dylan Simon, Executive Vice President
Jerrid Anderson, Executive Vice President
Matt Laird, First Vice President
Matt Johnston, Vice President
Max Frame, Vice President
Elijah Piper, Vice President
JD Fuller, Senior Associate
Jack Shephard, Senior Associate