Seattle Real Estate Market Analysis

Houses for Sale in Seattle

Discover Seattle

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

Best Short Term Rental Markets

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Short Term Rentals For Sale

Calculate annual revenue, ADR, & occupancy rates with our free Airbnb calculator

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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

Find Investment Properties

$964,000

MLS 2167529

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%

$1,350,000

MLS 2167438

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%

$1,099,000

MLS 2164613

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%

$350,000

MLS 2165853

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

Find Investment Properties

$569,000

MLS 2165408

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%

$510,000

MLS

925 N 85th St
Seattle, WA 98103 Greenwood

Townhouse

3 beds2 baths0 sq.ft.

CAP RATE

Trad. 6.49%Airbnb 7.23%

$330,000

MLS 2159503

1800 Taylor Ave N #10
Seattle, WA 98109 Westlake

Condo/Coop

2 beds1 baths798 sq.ft.

CAP RATE

Trad. 5.43%Airbnb 7.00%

$550,000

MLS 2013685

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

Find Investment Properties

$1,250,000

MLS 2133812

1711 20th Ave #D
Seattle, WA 98122 Central Seattle

Townhouse

3 beds3 baths1,939 sq.ft.

CAP RATE

Trad. 1.76%Airbnb 2.12%

$479,000

MLS 2141101

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%

$639,000

MLS 2139767

909 5th Ave #602
Seattle, WA 98164 Downtown

Condo/Coop

1 beds1 baths978 sq.ft.

CAP RATE

Trad. 1.35%Airbnb 1.04%

$1,999,990

MLS 2148568

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

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$2,000,000

MLS 2143128

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

$1,097,800

MLS 2162853

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

$945,000

MLS 2150223

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

$1,235,000

MLS 2133436

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

Find Investment Properties

$569,000

MLS 2165408

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%

$510,000

MLS

925 N 85th St
Seattle, WA 98103 Greenwood

Townhouse

3 beds2 baths0 sq.ft.

CAP RATE

Trad. 6.49%Airbnb 7.23%

$330,000

MLS 2159503

1800 Taylor Ave N #10
Seattle, WA 98109 Westlake

Condo/Coop

2 beds1 baths798 sq.ft.

CAP RATE

Trad. 5.43%Airbnb 7.00%

$550,000

MLS 2013685

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.