Seattle Investment Property for Sale - 2023 Rental Home Appreciation
For over a decade, the Seattle real estate market has been one of the hottest markets in the U.S. It's listed in the Emerging Trends in Real Estate 2022 report as a top 10 real estate market to watch because of its strong economy, population growth, and high demand for housing.
Seattle, Washington, is an established market with historically strong performance, just like Chicago, Boston, and Washington, DC. Establishment markets perform well even when interest rates increase.
Whether you're interested in commercial real estate, single-family homes, multi-family housing, or townhouse, the Seattle area presents many real estate investment opportunities.
Seattle's Attractive Housing Market
Seattle is known as the "Emerald City" because it's idyllically located between the Puget Sound and the Cascade Mountains and surrounded by lush, evergreen forests. It has everything the pacific northwest is known for - rustic coastlines, old-growth forests, and rugged mountains.
Seattle is home to 78 neighborhoods with distinct characters. Some of the best neighborhoods for real estate investors include Ballard, Beacon Hill, and West Seattle.
- Ballard: Ballard is a historic Seattle neighborhood located northwest of the Space Needle along Shilshole Bay. It's a walkable neighborhood with many bars and restaurants that attract young professional renters. The median listing price in Ballard is $616/sqft, and the median listing price is $934,000. The median rent is $2,000/month.
- Beacon Hill: Beacon Hillis conveniently located near I-5 and I-90 in southeast Seattle. It has a diverse community with many great restaurants, and its affordability makes it attractive to younger renters. The median listing price in Beacon Hill is $492/sqft, and the median listing price is $749,880. The median rent is $1,500/month.
- West Seattle: West Seattle is just a short drive, or water taxi, southwest of downtown Seattle. It has a suburban feel with big city convenience that attracts families. The median listing price in West Seattle is $525/sqft, and the median listing price is $929,500. The median rent is $2,980/month.
Some of the best suburbs of Seattle for real estate investors include Bellevue, Burien, Kirkland, Redmond, and Renton. Bellevue: Bellevue is located on the east of King County and across Lake Washington from Seattle. It's known for its single-family homes and new development multi-family housing. The median listing price in Bellevue is $697/sqft, and the median listing price is $1,480,000. The median rent is $3,830/month.
- Burien: Burien is located 10 miles south of Seattle along Highway 99, about halfway to Tacoma. It's known as a friendly and vibrant community with a small-town feel. The median listing price in Burien is $382/sqft, and the median listing price is $642,500. The median rent is $1,600/month.
- Kirkland: Kirkland is another eastside suburb located along Lake Washington. It's known for its waterfront parks and art galleries. The median listing price in Kirkland is $674/sqft, and the median listing price is $1,290,000. The median rent is $2,300/month.
- Redmond: Redmond is located just east of Kirkland. It's the home of Microsoft and is known for its diverse and eclectic community. The median listing price in Redmond is $607/sqft, and the median listing price is $1,400,000. The median rent is $2,400/month.
- Renton: Renton is located about 10 miles southeast of Seattle, right by the Seattle-Tacoma International Airport. It's a quieter community with good schools and parks that attract families. The median listing price in Renton is $397/sqft, and the median listing price is $750,000. The median rent is $2,450/month.
Rental Home Appreciation in Seattle
Seattle's idyllic location and job market make it an attractive destination for domestic and foreign migration. Seattle's population grew by 21% from 2010 to 2020. The result is a high demand for rental properties.
Seattle has a robust rental market. Over half (55%) of households in Seattle are renter-occupied. The demand for rentals is so high, and inventory is so low that it creates a lot of competition. Rental properties don't stay on the market long. The vacancy rate in Seattle is just 4.6%.
According to Realtor, the median listing price in Seattle is $584 per square foot, with a median home price of $829,000. The Northwest Multiple Listing Service (NWMLS) data shows that homes sell for 7% above the listing price. Additionally, the Zillow Home Value Index reports a home price appreciation of 17.8% since last year. The median rent in Seattle is $2,500 per month.
The high demand for rentals and home value appreciation make a Seattle property an excellent prospect for real estate investors and property management companies.
Economic Growth in Seattle
Seattle is the largest city in Washington State and the pacific northwest. It's been steadily growing for decades with no signs of stopping. Seattle's growth can be attributed to its job market.
Seattle has a diverse economy with many industries represented. The largest are information technology, manufacturing, maritime, and education.
The Seattle area is home to 10 Fortune 500 companies. They include Amazon, Microsoft, Costco, Starbucks, and Weyerhaeuser. Other notable employers include the University of Washington, Nordstrom, and Alaska Airlines. These companies fuel the city's economic growth and provide jobs that help fuel Seattle's population growth.
The unemployment rate in Seattle is just 2.6%, below the national average. The 10-year projected job growth rate is 43.8% which is well above the projected national rate. Seattle's population is projected to grow by 120,000 in that same period.
With such a strong economy and real estate market, it's no wonder Seattle is listed as one of the established markets to watch in 2022.
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