Economy: Job Count and Unemployment Both Rise
The Seattle metro area added 14,600 jobs year-over-year (YOY), with the latest total figure at over 2.1 million. The unemployment rate, however, also rose, up 40 basis points (bps) YOY to 5.0%, above the U.S. rate of 4.2%. As measured by the Consumer Price Index for All Urban Consumers, Seattle metro area prices advanced 4.4% YOY, driven by higher energy (+15.9%) and food (+5.3%) costs. Minus food and energy, the index rose 3.3% YOY, mainly due to cost increases to recreation (+7.0%) and shelter (+2.6%).
Supply and Demand: Construction Slowdown Continues
The region reported a 6.9% vacancy rate in the third quarter of 2026, down 60 bps YOY. Demand strengthened across all three counties, with total year-to-date absorption reaching 7,916 units. King County accounted for most of the leasing activity, posting 5,694 units of absorption, while Snohomish and Pierce counties also recorded positive net absorption and declining vacancy.
A total of 5,849 units have been delivered across the region thus far in 2026, while the development pipeline continues to moderate. Units under construction totaled 18,068 units at quarter-end, with more than three-quarters of active development located in King County. Amid limited construction starts and continued absorption of new supply, market occupancy is expected to improve further through the remainder of the year.
Rents: Effective Rents Rise Slightly YOY
Effective rents ended the quarter at $2.56 per square foot (psf), up 0.1% YOY, reflecting continued stability despite elevated supply levels in recent years. King County remained the region's highest-priced market at $2.74 psf, while Pierce County led annual rent growth at 1.2%. Snohomish County rents declined slightly from a year ago but remained competitive at $2.23 psf.
Regional rents have stayed above $2.50 psf since early 2024, supported by steady demand and improving occupancy fundamentals. With absorption continuing to outpace new deliveries and vacancy trending downward, conditions are becoming increasingly favorable for future rent growth.
