Should You Invest In Seattle Real Estate?

Stuck at the edge of America, with rain and clouds more than half the year, Seattle has managed over the decades to produce what the rest of America wants: first lumber and ships, then airplanes, then software, now e-commerce and trade with China. Without a hinterland to service, however, the Seattle economy depends a lot on demand that happens elsewhere, making it vulnerable to consumer cycles, tech cycles, and international trade politics. Investments in apartment buildings will probably be successful in the short run, as rents rise rapidly, but the heavy dependence on the continued growth of the tech industry makes longer term-investments questionable. Expected cash flows that incorporate endless rent increases are too optimistic.