Downtown Seattle Rent Increases for First Time in 17 Months Amid Amazon’s Return-to-Office Policy
SEATTLE — In a notable shift, the median asking rent in downtown Seattle has risen for the first time in 17 months, as reported by a recent analysis from Redfin. This increase comes amid growing anticipation regarding the impact of Amazon’s updated return-to-office policy, which requires employees to work full-time in the office.
According to Redfin, downtown apartment rents climbed 2.5% year-over-year in December, settling at a median of $2,000. This marks a significant rebound from a steep decline in rents that saw them plummet 36% from a peak of $3,118 in August 2022, primarily due to a surge in apartment construction during the pandemic.
Analyzing Rent Trends
Redfin’s calculations covered the last quarter of 2024 and focused on several neighborhoods, including downtown Seattle, the Alaskan Way waterfront, First Hill, Pioneer Square, Belltown, the International District, and Denny Triangle. Prior to the pandemic, median rents in downtown Seattle were around $2,000, but they dropped to as low as $1,399 in February 2021, coinciding with a shift in Seattle’s tech workforce to remote work.
Impact of Amazon’s Policy Change
As of January, Amazon has mandated that its approximately 55,000 Seattle-based employees return to the office full-time, a shift from a previous policy that allowed for three days a week in-office work. This change has already begun to affect traffic patterns in the city, although the extent of its impact on rental demand is still uncertain.
“Seattle has been constructing new apartments at a remarkable pace, second only to metro areas in the Sun Belt,” noted Redfin Senior Economist Sheharyar Bokhari. “This influx of new housing has kept rents relatively stable. However, as construction slows and major employers like Amazon push for daily office attendance, we may start to see increases in rent across Seattle’s core neighborhoods where commuting is more convenient.”
Neighborhood-Specific Trends
Redfin’s analysis also highlighted rent fluctuations in various Seattle neighborhoods. In Capitol Hill, for instance, the median rent surged to $1,825, reflecting a 7.2% increase year-over-year. Overall, the Seattle metro area saw a modest rise in median asking rent of 0.5%.
On the east side of Lake Washington, the rental market presented mixed results. Downtown Redmond experienced a 4.3% increase, with median rents reaching $2,350, while downtown Bellevue saw a 3% decrease, bringing rents down to $2,579.
