Are you thinking of investing in the Washington State real estate market in 2019 but you’re not sure which city offers the best investment opportunities? Well, we’re here to solve that problem for you! But first, let’s take a look at the housing market trends and predictions that make the Evergreen State a good place for real estate investors. After that, we’ll provide you with a list of the best cities for buying a rental property according to Mashvisor’s real estate data and predictive analytics.
Prices and Real Estate Appreciation
Home prices are on the rise in many states and major metropolitan cities in the 2019 US housing market. However, as shocking as it may be, some forecasters are predicting that home prices in Washington State will remain level throughout the year. Others, on the other hand, have predicted only a slight increase over the coming months.
Despite this slow price growth, Washington State is projected to lead in real estate appreciation in 2019. That is according to Veros Real Estate Solutions (Veros), an award-winning industry leader in enterprise risk management, collateral valuation services, and predictive analytics. In its most recent US Housing Outlook Report & Press Release, Versos gives a 12-month forecast of real estate values and reveals the top 10 housing markets that are projected to appreciate the most through December 1, 2019. Three of these 10 cities are in Washington State.
According to Zillow, the median home value in the Washington State real estate market is $379,500. That is an increase of 6.9% over the past year and Zillow predicts they will rise 5.2% in 2019.
As a result, it’s best for real estate investors to buy rental properties in the top cities of the Washington State real estate market now before appreciation takes hold and prices become unaffordable. To start looking for and analyzing the best investment properties in your city and neighborhood of choice in WA, click here.
Strong Demand for Rental Properties
The demand for rental properties is increasing in numerous cities of Washington State. This is mainly due to the fact that home buyers can’t afford the growing property prices and, thus, have turned to renting instead of owning their own homes. This is obviously good news for real estate investors in Washington State. In addition, this high demand is seen in nearly every housing sector – single-family homes, apartments, and condos.
One factor contributing to the increasing rental demand is the low supply of housing inventory across the state. Real estate experts believe that a balanced market has about four to six months of inventory. The Washington State real estate market, however, holds about two months of supply. As a result, there are not enough homes for sale to meet the demand for homebuyers. This explains why Washington State rent prices continue to rise, making housing even less affordable.
As a real estate investor in rental properties, buying in Washington State can be a smart move to generate rental income. Thus, if you own an investment property here, you have a good chance of scoring excellent returns in the form of positive cash flow in the short- to medium-term, and from real estate appreciation in the long-term!
Related: Real Estate Investing for Positive Cash Flow vs. Appreciation
Renting Out on Airbnb in Washington State
Many property investors in the US are turning to renting out on Airbnb as a better investment strategy to make money in real estate. As a matter of fact, real estate data actually encourage investors to rent out their properties as vacation homes to short-term tenants over the traditional rental strategy in some cities, including a number of cities in the Washington State real estate market. This is a good reason to consider buying in Washington State if you’re an Airbnb host or a seasonal investor.
Nonetheless, you need to keep in mind that there are a number of regulations regarding short-term rental properties in Washington State that might differ from one city to another. So, make sure to understand and follow the rules and regulations in your city of choice before renting out a house on Airbnb. For more information, read Airbnb Washington State: Top 10 Cities to Invest in for 2019.
10 Best Cities in the Washington State Real Estate Market 2019
When talking about the Washington State real estate market, your first thought would probably go to the Seattle housing market. However, there are other great-performing cities in Washington State that are worth looking further into for real estate investing in 2019. Of course, that’s not to say that the Seattle housing market is a bad place for real estate investment. Rather, because it’s such a competitive market, it’s not easy to get a hold of a profitable investment property there.
Related: 2019 Seattle Housing Market: Still a Good Choice for Investment?
As a result, a wiser decision for a beginner real estate investor is to buy an investment property to rent out in one of these cities in the Washington State real estate market instead.
Note that the data below is provided by Mashvisor’s Investment Property Calculator – a must-have real estate investment tool for analyzing and finding the best investment properties. To learn more about our product and the services we offer to property investors, click here.
Marblemount
- Median Property Price: $99,950
- Price Per Sq/Ft: $223
- Traditional Rental Income: $1,370
- Price-to-Rent Ratio: 6
- Cash on Cash Return: 8%
Baring
- Median Property Price: $200,000
- Price Per Sq/Ft: $154
- Traditional Rental Income: $2,230
- Price-to-Rent Ratio: 7
- Cash on Cash Return: 7%
Rosalia
- Median Property Price: $95,000
- Price Per Sq/Ft: $33
- Traditional Rental Income: $1,270
- Price-to-Rent Ratio: 6
- Cash on Cash Return: 7%
St John
- Median Property Price: $132,450
- Price Per Sq/Ft: $65
- Traditional Rental Income: $1,300
- Price-to-Rent Ratio: 8
- Cash on Cash Return: 7%
Covington
- Median Property Price: $612,937
- Price Per Sq/Ft: $243
- Traditional Rental Income: $3,321
- Price-to-Rent Ratio: 15
- Cash on Cash Return: 5%
Dupont
- Median Property Price: $275,000
- Price Per Sq/Ft: $173
- Traditional Rental Income: $2,500
- Price-to-Rent Ratio: 9
- Cash on Cash Return: 5%
Index
- Median Property Price: $145,000
- Price Per Sq/Ft: $181
- Traditional Rental Income: $1,330
- Price-to-Rent Ratio: 9
- Cash on Cash Return: 5%
Maple Falls
- Median Property Price: $154,000
- Price Per Sq/Ft: $167
- Traditional Rental Income: $1,310
- Price-to-Rent Ratio: 10
- Cash on Cash Return: 5%
Arlington
- Median Property Price: $401,355
- Price Per Sq/Ft: $233
- Traditional Rental Income: $2,450
- Price-to-Rent Ratio: 14
- Cash on Cash Return: 4%
Marysville
- Median Property Price: $358,163
- Price Per Sq/Ft: $222
- Traditional Rental Income: $2,323
- Price-to-Rent Ratio: 13
- Cash on Cash Return: 4%
Do you have a free Mashvisor account? Use our Property Finder to find lucrative investment properties in your city/cities of choice that match your criteria in a matter of minutes!
Final Words for Washington State Real Estate Investors
This is our analysis of the 10 best cities to buy rental properties in the Washington State real estate market in 2019. In these cities, real estate investors will find houses for sale for reasonable prices and a good rental yield. Combined, these two factors allow for positive cash flow and a high return on investment in the long-term. These are some of the most important factors that make Washington State one of the top locations for real estate investing in 2019.
Don’t forget that you can use Mashvisor’s investment tools to analyze, compare, and find lucrative rental properties in the city and neighborhood of your choice in just 15 minutes! Want to give them a try and see for yourself? Start out your 14-day free trial with Mashvisor now.