2018 is the year for real estate investing! The US housing market is looking positive, considering real estate market trends. If you’re a new real estate investor or an investor looking to find some of the best real estate investment opportunities, which real estate market should you turn to? Your choice for the best investment properties for 2018 should be Seattle real estate.
Never considered investing in Seattle real estate at all? Well, whether this means you’ll be investing close to home or out-of-state, investing in Seattle real estate will be the best decision you can make as a real estate investor. Let’s take a look at why Seattle homes for sale are some of the best investment properties for 2018.
City Trends That Affect Seattle Real Estate
There are different factors about the location that make or break a real estate investment property in the US housing market. For Seattle real estate, these trends are all looking positive for 2018:
Without people to buy or rent an investment property, what good is it? So, of course, population growth is a trend that real estate investors need to watch out for when buying an investment property in the US housing market. The Seattle real estate market is likely to see 29,000 new residents a year for the next five years. New residents mean high demand for Seattle real estate properties.
Along with this trend, there is a low inventory of Seattle real estate properties. This is due to the fact that there isn’t much land for building competition in the Seattle real estate market. Any successful real estate investor knows that the real estate market trends of high demand and low inventory are the best means for making money in real estate.
The Millennial Factor
One of the major real estate market trends of the US housing market of 2018 is the fact that more and more millennials will be buying an investment property as their first home. This real estate market trend bodes well for real estate investors because their market will be expanding to new buyers. This is good news for Seattle real estate as the city will be seeing a population growth of 17.3% in the ages of 15-34.
Population growth can be attributed to many factors, but the most prevalent is job growth. The Seattle real estate market is greatly affected by the fact that the city is home to major tech companies as well as top Fortune 500 companies.
Jobs in Technology
There is a forecast for an increase in high paying tech jobs. 12% of employees in Seattle are in STEM occupations. This is twice the national percentage. 4.5% of employees work in computer programming related occupations.
High paying jobs increase the value of Seattle real estate. This is because the higher the income of the population, the greater the ability for buying an investment property. This leads to one of the best real estate market trends that increases value: high demand.
While the current state of business will positively affect Seattle real estate and job growth, new businesses are also a major factor in the Seattle real estate market. Seattle is a city where up-and-coming companies can find a successful start. 10.2% of Seattle businesses have been opened within the last three years. These new businesses have created new jobs and now employ about 2.6% of the Seattle workforce.
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Related: Location Location Location: What Makes for The Best Place to Invest in Real Estate
Types of Seattle Real Estate to Invest In
The great thing about Seattle real estate is that any type of investment property is bound to succeed in the Seattle real estate market. However, there are two types that stand out the most: industrial real estate and residential real estate, specifically single family homes. Luckily, Mashvisor focuses on providing residential real estate investors with listings of the best single family homes (including condos and townhouses) from all over Seattle, Washington.
Investment Strategy: Traditional, Long-Term Single Family Homes
If a real estate investor chooses Seattle homes for sale and decides to use the investment strategy of long-term traditional rentals, he/she will be making a great investing decision. Let’s take a look at some of the numbers for traditional single family home investing from Mashvisor’s data:
Traditional Single Family Homes Cash on Cash Return: 2.25%
Traditional Single Family Homes Rental Income: $2,382
Seattle real estate used for a traditional, long-term investment strategy will give a good return on investment as well as good rental income.
Investment Strategy: Airbnb Seattle
While there are some restrictions on Airbnb Seattle, the opportunities that come along with a short-term rental strategy are great, as shown b y Mashvisor’s data on Airbnb Seattle:
Airbnb Seattle Cash on Cash Return: 1.44%
Airbnb Seattle Rental Income: $1,884
Airbnb Seattle Occupancy Rate: 45%
Basically, with Seattle real estate, a real estate investor can’t go wrong with either rental strategy: Airbnb Seattle or traditional residential real estate (single family homes).
Related: Four Things to Consider Before Purchasing an Airbnb Investment Property
Seattle Real Estate Won’t Struggle to Attract Tenants/Buyers
Seattle real estate benefits in many ways from the characteristics of the city itself, characteristics that attract buyers and tenants alike to the residential real estate of the area. Some of these characteristics are:
- Seattle was rated in the top five culinary markets.
- Seattle has one of the top-rated microbrew markets.
- The city has top ranking outdoor activities.
- 93% of the residents pf Seattle real estate have walkability to a green park.
Top Neighborhoods for Investing in Seattle Real Estate
Looking at Mashvisor data, here are the top neighborhoods for investing in Seattle real estate:
Note: The Mashmeter is Mashvisor’s tool for rating real estate investing in a specific neighborhood. It can give a real estate investor a general idea of how good a single family home investment property will be in that neighborhood.
Seattle real estate clearly promises to bring success to the real estate investor who chooses Seattle homes for sale rather than any other investment properties in other real estate markets. Are we promising that every Seattle real estate investment property will succeed? Of course not. Be sure to perform investment property analysis as well as real estate market analysis before buying an investment property to choose the best Seattle real estate available.
Related: The Investment Property That You Should Never, Ever Buy
Want to know where the other best investment properties for 2018 can be found? Read “Where to Look for the Best Real Estate Investments for 2018” to find out!