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Five Trends to Watch in the New Construction Market in 2025
Excerpt of the 2025 Market Forecast Report from Realogics Sotheby’s International Realty
Realogics Sotheby’s International Realty’s New Developments team represents the region’s most comprehensive portfolio of new home opportunities from sea to sky. Get a closer look at the incredible projects the New Developments team represents on their recently launched website.
Luxury real estate, redefined. Follow us to explore the most exciting new projects in Seattle and beyond.
Learn more at: rsir.com/developments
In the Pacific Northwest, where housing supply has chronically struggled to keep pace with demand, new construction is essential for attainability, consumer choice, and shaping the future of living. Beyond simply adding inventory to the region’s housing shortage, today’s homebuyers seek more: innovative designs, lifestyle amenities, branded experiences, and exciting destinations to call home.
By Dehlan Gwo, Vice President of New Developments
Condominium Estates: Downsizing Responsibilities and Upsizing Lifestyle
As the Seattle metropolitan area’s demographics shift, an increasing number of homeowners are seeking to downsize from traditional single-family homes into walkable, amenity-rich urban and town center environments. Condominium estates, such as Infinity Shore Club Residences on Seattle’s iconic Alki Beach, offer an elegant solution — providing spacious, high-end living without the burdens of home maintenance. Many buyers in this category also maintain secondary residences in destination markets, making the lock-and-leave lifestyle especially appealing. Recognizing the logistical challenges of transitioning homes, RSIR and developer Vibrant Cities introduced the Early Occupancy Program that has allowed buyers to seamlessly move in while preparing their prior homes for market.
Seattle boasts significant wealth and impressive residential compounds (of the single-family home variety), yet it has long lacked true luxury attached housing that rivals top-tier offerings in cities like New York, Miami, and Los Angeles. RSIR New Developments sees relatively untapped potential and growing buyer demand for compellingly tasteful multi-family residential product. RSIR has been at the forefront of this product evolution, beginning with Fifteen Twenty-One Second Avenue, which was presold in 2006/07 and delivered in 2009. Notably, this project demonstrated the broad appeal of larger-format condominiums, attracting not only downsizers but also young families – more than 60 children called the 143-unit building home. Today, the demand for high-end, amenity-rich, full-service condominium estates continues to grow, reflecting a broader trend toward effortless luxury living in the city’s most sought-after locations.
Infinity Shore Club Residences – a collection of 37 condominium estates on Alki Beach, now over 60% sold.
Urban Revival: Reigniting Condominium Demand at the End of a Building Cycle
Sentiment in Downtown Seattle has significantly improved over the past 12 months. There is a palpable energy and sense of revival in the city, led by more moderate, pragmatic city leadership prioritizing public safety and livability, combined with the economic boost of return to in-person work in Downtown offices. Retail businesses are reopening, restaurants are busier, the streets are cleaner, and the daytime Downtown population has swelled. Based on the number of folks out and about during the evenings and weekends, it appears the number of full-time Downtown residents is following suit.
Major infrastructure investments, such as the Washington State Convention Center Expansion and the new Seattle Waterfront , are further energizing the city, with hotel occupancy already surpassing pre-pandemic levels. Looking ahead, initiatives like the Lid I-5 project signal continued commitment to Downtown’s transformation, reinforcing appeal for future residents and investors alike.
Graystone, the stately curtainwall building on First Hill, has emerged as a standout among new condominium offerings. Located on the “Upper Eastside” of Downtown Seattle, First Hill provides an established residential setting with historic charm, tree-lined streets, and modern convenience — an attractive alternative to the high-density commercial zones nearby. Notably, the majority of Graystone’s recent buyers have come from the tech sector, a promising indicator that many of Downtown’s new and returning residents are choosing to invest in the city with a home purchase, rather than rent. Downtown Seattle is finally waking up from its slumber, and so is Downtown Seattle’s condominium market, poised for a resurgence.
Market Imbalance: Demand Soars, Supply Stalls, and Washington State Mandates Solutions
While condominium sales prices in the Seattle-Bellevue cores are catching up to pre-pandemic peak-values and fervor, 2024 saw a massive uptick in sales activity across the city, especially in new construction buildings. Projects delivered since 2020 have had to adjust pricing to match market realities and mortgage qualifications, many of these homes are selling below replacement costs, creating a rare window of opportunity for buyers who recognize that new supply will not emerge until prices rise by 30-40% — a trajectory that seems inevitable as the city repopulates. Present conditions required for new condominium projects to pencil remain challenging due to elevated prices of infill land sites and high construction costs for high-rises. Many developers have favored apartment construction instead, where rising rents and concerns over construction defect liabilities have made rental projects more viable for risk-return profiles.
Now, a critical supply-demand imbalance is brewing. No significant new condominium developments have broken ground in the last four years, and this lack of construction will likely continue into the next several years. Considering the timing of entitlements and construction, it might be a near-decade before the Seattle-Bellevue market sees deliveries of any new condominiums.
The data speaks for itself: since 2015, more than 85% of newly developed condominium units have already sold across 16 delivered buildings. History suggests a condominium shortage is imminent – Downtown Seattle endured a six-year drought between Escala’s completion in 2009 and Insignia’s debut in 2015 , creating pent-up demand that primed our current decade-long condominium building cycle. Bellevue’s condo drought lasted even longer – the delivery of the Bellevue Towers marked the end of the previous cycle in 2009, and One 88 kicked off the new cycle in 2020 – 11 years between completions. Similar scenarios appear to be unfolding now on both sides of Lake Washington, with no major new condo towers on the immediate horizon, reminding buyers and brokers that “what you see is what you get” when it comes to available inventory.
The pipeline is dry, new inventory is dwindling (especially below $800,000), and buyer demand is picking up dramatically. We anticipate condominium prices will follow accordingly into the coming years. While Washington State’s House Bill 1110 aims to encourage density in single-family neighborhoods, it does little to address the growing urban condominium shortfall. Without stronger incentives to spur new development, Seattle’s condominium market is likely to face continued inventory constraints, pushing prices higher as demand outpaces supply in the years ahead.
Suburban Shift: The Rise of Medium & High-Density Living
As demand for attainable housing and lifestyle-driven real estate grows, medium and high-density living is expanding into traditionally single-family suburban and exurban markets. Rainier Chalet , a condominium development planned in Enumclaw, offers a rare opportunity to own a lock-and-leave residence near Crystal Mountain Resort , blending recreational access with everyday livability. While the value of carving first tracks on one of the most popular ski resorts in the Northwest is compelling, Rainier Chalet is more than just a seasonal retreat — it represents a broader shift toward quality, multi-family housing for ownership in areas once dominated by single-family homes and agricultural land. Healthy local homebuyer demand fundamentals that already exist in markets like Enumclaw-South King County make these kind of projects feasible (surprisingly, comparable price per square foot values for condominiums at the base of Crystal Mountain Resort exceed that of downtown Seattle).
This shift is also evident in suburban nodes like Sammamish Town Center and Totem Lake in Kirkland, where RSIR has introduced for-sale multi-family developer clients and finished for-sale projects into rapidly evolving suburban hubs. Additionally, the remaking of tired malls in suburban markets remains likely, especially when accessible to light rail with expansion of Sound Transit 3 (such as Seattle’s Northgate Mall).
Resort Renaissance: Evolving Buyers & Elevated Products in Second Home Markets
Resort markets are experiencing a resurgence as rising home equity and renewed confidence in discretionary spending drive second-home demand. Following the pandemic-fueled buying spree and a temporary slowdown due to higher mortgage rates, buyers are once again seeking drive-todestinations that offer four-season attractions. Crescent Ridge Resort, a new luxury community on
the sun-soaked shores of the Columbia River in Central Washington, is a prime example of this shift, providing access to everything from water sports and backyard wine country retreats to skiing at Mission Ridge and world-class concerts at The Gorge Amphitheater . Beyond leisure, these communities offer flexibility, with large garages for recreational “toys” and opportunities for short-term rentals, making second-home ownership more practical and versatile. Offering more than 300 days of sunshine east of the Cascade Mountains, Eastern Washington destinations offer an antidote for those suffering from Seasonal Affected Disorder (SADs), with drive times that are less than flight times to alternative desert markets like Palm Springs, CA, or Phoenix, AZ.
As these markets mature, so do the homes and communities within them. Today’s buyers — whether seasonal residents, families, downsizers, or investors — expect high design, diverse home plans, and resort-style amenities tailored to their lifestyles. Builders are responding with customization options, impressive community programming, and thoughtfully designed spaces maximizing views that transform once-sleepy seasonal towns into dynamic, year-round destinations . From golf memberships and waterfront access to epicurean and wellness-focused amenities, resort homebuyers now have more choices than ever, ensuring that second homes are not just a getaway but a seamless extension of their ideal lifestyle.
The Rise of Branded Residences: Buying into a Lifestyle
A branded residential property has subtle details that impart authenticity to every facet of living there. It might be in the stitching on a leather couch that echoes the craftsmanship found in a prized sports car or bathroom fixtures that resemble a favorite handbag from an Italian boutique. Today’s branded residences are havens that entice both brand loyalists and clients who are seeking a like-minded community. Simply put: today’s buyers want to live in style.
Branded residences have existed for several decades but the trend notably picked up during 2020. As of 2024, the global branded residential market is valued at US$66 billion. In the past decade alone, the number of branded residences has increased by 150%. While brands once only collaborated on residential projects with hotels, standalone branded developments are becoming increasingly common. These projects can also be more lucrative for developers, as branded residences fetch higher prices. It is not uncommon for branded homes to fetch a 25% premium compared with non-branded condominiums, the Miami-based architect Bernardo Fort-Brescia told Forbes in March 2024. In short, buyers pay more up front for a brand name that is linked to high-quality service and craftsmanship, top-notch design and bespoke amenities. This makes projects stand out in an overcrowded market. - From Sotheby’s International Realty’s Luxury Outlook Report on Branded Living.
Recently, RSIR CEO Dean Jones hosted affiliates from Russ Lyon Sotheby’s International Realty to present The Summit by Olson Kundig, the final phase of condominium estates at The Phoenician, a legacy golf course, hotel, and country club in Scottsdale, AZ, immediately adjacent to the famed Camelback Mountain. In this case, the branded residences were associated more with the architectural team than a hospitality brand. Another example of architectural legacy is the success of One Thousand Museum Tower by Zaha Hadid in Miami, sold by ONE Sotheby’s International Realty or the supertall condominium tower 111 West 57th by Shop Architects in New York City, represented by The Field Team of Sotheby’s International Realty. Iconic design can be collected like a living work of art.
For more information on Branded Residences, visit: https://www.luxuryoutlook.com/2025-luxury-outlook-report/branded-living.
111 West 57th
St. Regis Residences in Miami
FAR RIGHT: Dehlan Gwo, VP of New Developments at RSIR, visiting colleagues at ONE Sotheby’s International Realty representing notable branded developments in South Florida. FAR LEFT: The iconic supertall 111 West 57th Street above Central Park in New York City is represented by the Field Team of Sotheby’s International Realty, Manhattan.
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Realogics Sotheby’s International Realty New Developments Featured Properties
The RSIR New Developments Team is excited to show our current featured properties as well as to announce new project listings in urban, suburban, exurban, and resort locations around the Pacific Northwest in 2025. Stay tuned and follow us at rsir.com/developments
Graystone
First Hill | 800 Columbia Street
Priced from the $400,000s | Move in Today
Perfectly at home in Seattle’s historic First Hill neighborhood, where heritage buildings and tree-lined streets blend with modern architecture, Graystone is an elegant collection of one-of-a-kind condominium residences that embody Seattle’s relaxed and refined style.
TheGraystone.com
Offered by Daniels Real Estate
Rainier Chalet
Enumclaw | 2200 Mountain View Drive
Priced from the $300,000s | Occupancy 2026
Situated at the base of Crystal Mountain, Rainier Chalet Condominiums offers one-, two-, and three-bedroom homes coming soon to Enumclaw. With a Rainier Chalet residence, you’re at the gateway to unmatched natural beauty.
Infinity Shore Club Residences
Alki Beach | 1250 Alki Avenue SW
Priced from $1 Million | Move in Today Offered by Vibrant Cities, LLC
The best and only offering of its caliber in Seattle’s Alki Beach, Infinity Shore Club is an exclusive collection of 37 condominium homes. Now over 60% sold, this boutique building offers one-plusden-, two-, and three-bedroom homes with large exterior terraces overlooking the Puget Sound.
Crescent Ridge
Quincy | 23524 Grand Cru Drive NW
Priced from $1.5 Million | Move in Today Offered by Hadley Properties CrescentRidgeResort.com
Nestled in sun-soaked Central Washington along the tranquil Columbia River. Each home offers floor-to-ceiling windows, a generous open layout, ensuite bathrooms, high-end finishes, and an indoor/outdoor living area—all designed to take full advantage of the stunning views.