Seattle — An Attractive Market for Multifamily Conversions

Finding Opportunities in a Market with Muted Supply yet Resilient Demand

Since entering the Washington market in 2017, Post Real Estate Group has built a 2,400-unit portfolio across 11 assets — including four within the Seattle metro and others in Tacoma, Kennewick, Bremerton, Federal Way, Washougal, and Poulsbo — leveraging its self-managed platform, deep local relationships, and regulatory expertise to scale within a coastal gateway region defined by muted supply and resilient multifamily demand.

Strong Fundamentals*

• Asking rents in the Seattle metro reached $2,246/month (average advertised) through May 2025 — up 0.5% over the prior three-month period, outperforming the national increase of 0.3%.
• Occupancy in stabilized multifamily properties in April held at 95.1%, above the U.S. average of ~94.4%.
• Over the 12 months to March, the metro added roughly 16,000 net jobs (growth rate ~1.4%), driven by education/health services and professional/business services. Unemployment was ~4.2% in April.
• Through May 2025, approximately 3,312 new units were delivered in the metro, with ~18,193 units underway; fully affordable communities accounted for roughly 25% of new supply. Sales/investment pricing rose to ~$398,212 per unit in May (up ~25.2% year-to-date).

Why It Matters

• High baseline occupancy and rent levels indicate a strong demand environment. With stabilized occupancy still in the mid-95% range and rent growth positive, existing properties have upside potential in value and income stability.
• Supply pipeline remains substantial, but the significant proportion of new construction ( ~18,000+ units underway) paired with elevated per-unit acquisition/investment cost (~$398K) suggests high entry barriers for new market-rate development. These dynamics support conversion strategies for existing assets.
• Affordable/community component is already meaningful: 1 in 4 new units delivered are fully affordable. For investors/developers converting market multifamily to affordable or middle-income housing, the publicly demonstrated priority (and supply share) of affordable product signals policy and development alignment.
• Relative attractive market context: Compared to many mature coastal metros, Seattle still offers meaningful upward rent pressure and tight occupancy. For a company focused on “market → affordable” conversion, the low-to-middle income segment may be underserved, and conversion provides a way to capture value while aligning with mission.

Post’s Outlook

In the Seattle region, the multifamily fundamentals remain robust, with strong demand, elevated pricing, and supply constraints that support the conversion of existing assets into affordable or middle-income housing. For a developer/investor using tax-exemption or subsidy vehicles, this market presents an opportunity to bridge the gap between high acquisition/development cost and public housing needs — delivering both community impact and a stable income base. As new supply remains substantial but cost-intensive, converting existing properties can be a strategic entry point.

*Source: Yardi Matrix’s “Seattle Multifamily Market Report – July 2025”