Seattle Real Estate Market Analysis

Houses for Sale in Seattle

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Seattle is a seaport city on the West Coast of the United States. With an estimated population of 755,745 people, it is the largest city in both the state of Washington and the Northwestern U.S. The Seattle metropolitan area has a population of over 3.9 million residents, making it the 15th largest metro area in the nation. 

The Seattle real estate market benefits from the fact that Seattle is one of America’s fastest growing cities (ranked #2 by Forbes in 2018), with a population growth rate twice the national rate. This is particularly due to the strong annual net migration that the city experiences. Also, according to NeighborhoodScout, more than 53% of the population are renters rather than homeowners, making the Seattle real estate market a top location for rental property investments.

The “Emerald City”, as it is famously known, enjoys a thriving and diverse economy. It is home to eight Fortune 500 companies, including some of the biggest tech companies in the world. Software giant Microsoft, internet retailer Amazon, and warehouse store Costco all have their headquarters in and around the city.  The aerospace industry remains a major contributor to Seattle’s economy after the local Boeing company established the city as a center for aircraft manufacturing nearly a century ago; Boeing is the largest private employer in the Seattle area with about 80,000 employees. International trade is another leading industry in Seattle due to its strategic location: The port of Seattle is a major gateway for trade with markets in Asia and serves as a departure point for cruises to Alaska. Seattle is also a hub for startups, particularly in eco-friendly building and clean technologies.   Other industries based in the city include transportation equipment manufacturing, finance, biotechnology, healthcare, insurance, tourism, agriculture, construction, and retail. 

Due to the healthy employment market, Seattle is witnessing a big influx of young techies moving into the city, increasing the demand for the city’s real estate, especially when it comes to traditional rental properties. The multiple economic sectors, together with the strong economic growth, make the city a magnet for real estate investors.


Seattle was the #1 hottest real estate market in 2018 but slipped to #16 in this year’s Emerging Trends in Real Estate: United States and Canada 2019 report by PWC. Nonetheless, it is still viewed as an attractive place in which to invest; According to the report, real estate investor demand in Seattle is still the highest in the U.S. Pacific region.

Seattle  Real Estate Investment Performance

Facts and Market Trends in Seattle
Homes For Sale2,046
Airbnb Properties3,916
Rental Properties91
Traditional Vacancy rate4.90%
Airbnb Occupancy Rate66.77%
Mashmeter27.80%
Median Price$808,800
Median Rent Price$2,441
Price/sqft$631
Median Days on Market35
Price to Rent Ratio30.4
Average Cap Rate
Airbnb3.01%
Traditional2.49%
Average Rental Income
Airbnb$4,393
Traditional$2,811
 
Median Household Income$110,800
Population733,919
Transportation in Seattle
74 / 100
Very Walkable
60 / 100
Good Transit
71 / 100
Very Bikeable
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Seattle  Rent Prices

RENTAL STRATEGY STUDIOS 1 BEDROOM 2 BEDROOMS 3 BEDROOMS 4 BEDROOMS
Airbnb$2,537$2,764$3,764$4,663$5,667
Traditional$2,044$2,039$2,512$3,344$3,892

Seattle, WA - Homes for Sale - Newly Listed

2510 6th Ave #2810
Seattle, WA 98121
South Lake Union
Condo/Coop
1 beds1 baths985 sq.ft.
CAP RATE
Trad. -0.10%Airbnb -0.21%
831 NW 53rd St
Seattle, WA 89107
East Ballard
Single Family Residential
4 beds3 baths2,340 sq.ft.
CAP RATE
Trad. 1.44%Airbnb 1.83%
3944 S Angeline St
Seattle, WA 98118
Columbia City
Single Family Residential
3 beds3 baths2,550 sq.ft.
CAP RATE
Trad. 0.87%Airbnb 1.13%
13717 Linden Ave N
Seattle, WA 98133
Bitter Lake
Condo/Coop
2 beds1 baths955 sq.ft.
CAP RATE
Trad. 2.83%Airbnb 2.69%

Top Performing Seattle Properties

338 NE 55th St
Seattle, WA 98105
Wallingford
Single Family Residential
4 beds2 baths2,444 sq.ft.
CAP RATE
Trad. 5.90%Airbnb 7.93%
925 N 85th St
Seattle, WA 98103
Greenwood
Townhouse
3 beds2 baths0 sq.ft.
CAP RATE
Trad. 6.49%Airbnb 7.23%
1800 Taylor Ave N #10
Seattle, WA 98109
Westlake
Condo/Coop
2 beds1 baths798 sq.ft.
CAP RATE
Trad. 5.43%Airbnb 7.00%
4070 5th Ave NE
Seattle, WA 98105
Wallingford
Single Family Residential
3 beds2 baths1,820 sq.ft.
CAP RATE
Trad. 5.95%Airbnb 7.00%

Recently Sold Homes in Seattle, WA

1711 20th Ave #D
Seattle, WA 98122
Central Seattle
Townhouse
3 beds3 baths1,939 sq.ft.
CAP RATE
Trad. 1.76%Airbnb 2.12%
4235 Brooklyn Ave NE #305
Seattle, WA 98105
University District
Condo/Coop
1 beds1 baths805 sq.ft.
CAP RATE
Trad. -1.58%Airbnb 1.28%
909 5th Ave #602
Seattle, WA 98164
Downtown
Condo/Coop
1 beds1 baths978 sq.ft.
CAP RATE
Trad. 1.35%Airbnb 1.04%
101 14th Ave E
Seattle, WA 98112
Central Seattle
Single Family Residential
3 beds baths1,684 sq.ft.
CAP RATE
Trad. 0.02%Airbnb 0.24%

Property Value Changes and Real Estate Appreciation in the Seattle Housing Market

Seattle real estate prices are among the most expensive in the U.S. It is therefore natural to see that property appreciation has been significant over the years. Since the beginning of 2000, Seattle properties have experienced a total appreciation of 169.55% according to NeighborhoodScout, which is an average annual home appreciation rate of 5.29%. 

However, Zillow reports that Seattle property values have declined by 4.5% over the past year and are predicted to fall 3.8% within the next year. It is believed that the Seattle real estate market is cooling down due to a decrease in hiring at Amazon’s Seattle headquarters in recent months. In fact, Seattle housing prices rose to record levels in recent years, fueled largely by the success of Amazon. Since that peak, however, they have started to cool down. Now, real estate properties are selling at the market price, which is a good sign for future Seattle real estate investors. 

The Seattle housing market is currently a buyer’s market as there are more homes for sale on the market than people looking to buy. It is possible that the Seattle housing market cool down is just a sign that buyers reached their limit after years of incessant sales. As a real estate investor, you should take advantage of this state and buy an investment property in Seattle.

Seattle, WA Top Multi Family Homes

8523 23rd Ave NE #1-4
Seattle, WA 98115
Wedgwood
Multi Family
8 beds baths3,800 sq.ft.
CAP RATE
Trad. 2.01%Airbnb N/A
1056 S Sullivan St
Seattle, WA 98108
South Park
Multi Family
4 beds baths2,600 sq.ft.
CAP RATE
Trad. 1.87%Airbnb N/A
933 29th Ave S
Seattle, WA 98144
Judkins Park
Multi Family
4 beds baths1,950 sq.ft.
CAP RATE
Trad. 0.73%Airbnb N/A
4511 SW Lander St
Seattle, WA 98116
Admiral
Multi Family
6 beds baths2,810 sq.ft.
CAP RATE
Trad. 0.56%Airbnb N/A

Homes Below Median Price in the Seattle, WA Real Estate Market

338 NE 55th St
Seattle, WA 98105
Wallingford
Single Family Residential
4 beds2 baths2,444 sq.ft.
CAP RATE
Trad. 5.90%Airbnb 7.93%
925 N 85th St
Seattle, WA 98103
Greenwood
Townhouse
3 beds2 baths0 sq.ft.
CAP RATE
Trad. 6.49%Airbnb 7.23%
1800 Taylor Ave N #10
Seattle, WA 98109
Westlake
Condo/Coop
2 beds1 baths798 sq.ft.
CAP RATE
Trad. 5.43%Airbnb 7.00%
4070 5th Ave NE
Seattle, WA 98105
Wallingford
Single Family Residential
3 beds2 baths1,820 sq.ft.
CAP RATE
Trad. 5.95%Airbnb 7.00%

Seattle Airbnb Growth and Regulations

The last few decades have seen the “Emerald City” blooming and turning into a top destination for people from all around the world. With it being such a tourist-friendly location, Seattle short-term rental properties are a great real estate investment. The monthly Airbnb rental income reported in 2018 for the city of Seattle was $3,225 on average.  

The City of Seattle has enacted a number of regulations governing short-term rental businesses in the last couple of years. All Airbnb Seattle investors planning on hosting short-term stays (less than 30 nights at a time) must obtain a Short-Term Rental Operator’s Licence through the Department of Finance and Administrative Services (FAS), in addition to a Business Licence Tax Certificate.  This licence costs $75 per unit and must be renewed each year. Airbnb Seattle investors are allowed to operate up to two dwelling units they own, one of which must be their primary residence. If the Airbnb listing is a secondary home (non-owner occupied), hosts are required to register the rental property with the city’s Rental Registration and Inspection Ordinance Program, for a fee of $70. 


There is however an exception to this particular Airbnb regulation: Hosts already operating a short-term rental in the Downtown Urban Center will not be subject to any limits on the number of units they can rent out.

Seattle, WA Top Airbnb Homes

Entire home/apt · 1 bed
Beautiful Guest Suite for 2 in Ballard
1320
Entire home/apt · 2 beds
Beautiful Private Spot in North Ballard
1020

Seattle, WA Homes for Rent

3836 S LUCILE ST UNIT A
Seattle, WA 98118
Hillman City
Single Family
2 beds1 baths900 sq.ft.
404 30TH AVE E
Seattle, WA 98112
Madison Valley
Single Family
3 beds1.75 baths1,280 sq.ft.
10722 24TH AVE NE B
Seattle, WA 98125
Victory Heights
Multi Family
3 beds2 baths1,150 sq.ft.

Seattle, WA Open Houses

588 Bell St #3705S
Seattle, WA 98121
First Hill
Condo/Coop
2 beds2 baths1,269 sq.ft.
CAP RATE
Trad. -1.12%Airbnb -0.39%
1318 42nd Ave SW
Seattle, WA 98116
Admiral
Single Family Residential
4 beds4 baths4,300 sq.ft.
CAP RATE
Trad. -0.36%Airbnb -0.31%
3722 34th Ave SW
Seattle, WA 98126
Junction
Single Family Residential
3 beds2 baths1,800 sq.ft.
CAP RATE
Trad. 2.22%Airbnb 3.09%
9854 5th Ln SW #21
Seattle, WA 98106
Highland Park
Single Family Residential
5 beds3 baths2,701 sq.ft.
CAP RATE
Trad. 0.99%Airbnb 2.08%

Best Seattle Neighborhoods for Buying Investment Property

International District
Seattle, WA
52%
Mashmeter
property price
504950
Median
cap rate
5.79%
Traditional
10.62%
Airbnb
rental income
$2,438
Traditional
$4,469
Airbnb
homes for sale
12
occupancy rate
67%
Airbnb
Jackson Place
Seattle, WA
52%
Mashmeter
property price
682475
Median
cap rate
5.10%
Traditional
7.69%
Airbnb
rental income
$2,901
Traditional
$4,374
Airbnb
homes for sale
11
occupancy rate
68%
Airbnb
North College Park
Seattle, WA
47%
Mashmeter
property price
585000
Median
cap rate
5.13%
Traditional
7.49%
Airbnb
rental income
$2,500
Traditional
$3,650
Airbnb
homes for sale
1
occupancy rate
67%
Airbnb
Pinehurst
Seattle, WA
46%
Mashmeter
property price
799950
Median
cap rate
4.10%
Traditional
4.68%
Airbnb
rental income
$2,735
Traditional
$3,118
Airbnb
homes for sale
32
occupancy rate
64%
Airbnb
Portage Bay
Seattle, WA
46%
Mashmeter
property price
1157500
Median
cap rate
3.15%
Traditional
4.32%
Airbnb
rental income
$3,040
Traditional
$4,167
Airbnb
homes for sale
12
occupancy rate
67%
Airbnb
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