Downtown Seattle Rent Increases as Amazon Employees Return to Office

As winter weather descends upon western Washington, the region is bracing for a mix of heavy mountain snow and the possibility of snowfall in the lowlands this weekend. The forecast suggests that residents may need to prepare for potentially challenging conditions.

Downtown Seattle Sees Rent Increases

In a notable shift, rent prices in downtown Seattle have risen for the first time in 17 months, coinciding with Amazon employees returning to the office. According to a recent report from Redfin, the average rent for an apartment in downtown Seattle saw a 2.5% increase year-over-year in December, reaching $2,000. This area encompasses several neighborhoods, including the central business district, Alaskan Way waterfront, First Hill, Pioneer Square, Belltown, the Chinatown-International District, and Denny Triangle.

Impact of Amazon’s Return-to-Office Policy

Although the uptick in rental prices occurred before Amazon’s January mandate requiring employees to work five days a week, experts caution that it is too soon to determine the full impact of this policy on rental rates and demand. Notably, many Amazon employees reside within commuting distance, which may mitigate the immediate effects on the rental market.

Neighborhood Trends

Among Seattle’s inner neighborhoods, Capitol Hill experienced the highest rent increase in December, with prices climbing 7.2% year-over-year to an average of $1,825. The Central District followed closely behind, with rents rising by 1.2% to $1,895, while Westlake saw a 1% increase, bringing the average rent to $2,265.

Conversely, some neighborhoods reported significant declines in rent. Queen Anne experienced a steep drop of 13.7%, with average rents now at $1,981, while South Lake Union saw a 13.5% decrease, bringing rents down to $2,385.

Eastside Market Variations

On the Eastside, the rental landscape is mixed. In downtown Redmond, the median asking rent rose by 4.3% to $2,350. However, downtown Bellevue faced a 3% decline, with median rents falling to $2,579.

Overall Market Overview

For the greater Seattle metropolitan area, the median asking rent saw a modest increase of 0.5% in December, reaching $2,017. As the winter season unfolds, it will be interesting to monitor how these trends evolve amidst changing workplace dynamics and environmental conditions.