With its lovely scenery and rich culture, Seattle is a great tourist destination. Does this make Airbnb Seattle a great investment this year?
Seattle is one of the biggest and fastest-growing cities in the United States. Economically, Seattle is a known commercial hub and a hotspot for technical innovation. Geographically, it is surrounded by water, mountains, evergreen forests, and it has wide acres of parkland.
The Seattle housing market is hot in 2022. With the record-low inventory and continuously rising home prices, we can expect to see a strong sellers’ market in Seattle this year. According to KIRO 7 News, many home buyers in Seattle are paying $300,000 to nearly $1 million over the asking price. One of the drivers of Seattle’s real estate market is its growing population, which we can anticipate to increase significantly in the coming years.
Related: Washington State Housing Market Forecast 2022
Is Airbnb Seattle WA a Profitable Market?
Aside from the influx of people moving to reside in Seattle due to its growing economy and job opportunities, Seattle is also a popular tourist destination. The strong tourism industry is one of the reasons why an Airbnb Seattle rental property will make a profitable investment.
Known as “The Emerald City” because it’s surrounded by greenery all year round, Seattle is a favorite destination for nature lovers. The city is rich in culture and arts and offers beautiful outdoor spaces and several entertainment options for families, couples, and lone travelers. In general, Seattle has a variety of tourist attractions and experiences that make it a great location for investing in short term rentals.
Demand for Travel to Seattle Is Recovering
There are many reasons why investing in Airbnb Seattle is a wise decision for vacation rental investors in 2022. Thanks to increased vaccination rates against COVID-19, this dynamic, urban city has reopened its tourism and is safely welcoming back both local and foreign visitors. The increasing tourist traffic from people all over the world is one reason why the Seattle Airbnb market is a hot investment this year.
Seattle is home to a wide selection of tourist attractions. There’s a variety of activities that keep visitors coming back to this city—sightseeing, strolling along the trendy neighborhoods, exploring the natural spaces, hiking, biking, kayaking, and more. Seattle is also rich in history, music, arts, cultural heritage, sports, performing arts, and indoor adventures.
Knowing a city’s tourism is essential in determining whether it will be a good place for short term rental investment. In addition to its tourist locations, you should also consider the seasonality of Seattle’s tourism industry before you decide whether or not to invest in vacation rentals. This can tell you whether you can get your property occupied throughout the year or you will encounter cash flow problems during non-peak seasons.
Related: How to Find the Best Area for Airbnb Investment
Things to Do in Seattle Washington
The good news is, it’s good to buy an investment property for an Airbnb rental in Seattle because visitors flock to the city all year round. Seattle offers a wide range of experiences for both locals and tourists, and the best time to visit Seattle varies based on the type of experience one craves. Whatever the season is, visitors are sure to find something interesting to do and new vacation opportunities to experience.
Summer is a good time for hiking, shopping, exploring the neighborhoods, and doing water activities like sailing, cruising, and kayaking. Meanwhile, winter in Seattle is the perfect time for activities like visiting a hot spring, skiing, snowboarding, snowshoeing in the mountains, ice skating, and enjoying the holiday festivities. When choosing a location for your Airbnb Seattle investment, consider the nearby tourist spots so you’ll know how to get your property occupied throughout the entire year.
Seattle is known for its natural beauty and the great outdoors, making it an excellent destination for those looking for outdoor activities and adventures. Thankfully, there’s no shortage of ways to get out and explore the wonders of The Emerald City. Here are the top four most popular outdoor destinations for visitors while in Seattle, Washington:
Hiking is one of the most popular activities for both locals and tourists in Seattle. The Discovery Park is a 534-acre city park that’s best for those who want to experience the wilderness. It has around 12 miles of walking trails with views of meadows, beaches, bluffs, mountains, and tall trees—this is a great place for those who want to get close to nature.
The Burke-Gilman Trail winds 27 miles through Seattles’s notable neighborhoods, including Ballard, Fremont, and the University District. You may want to consider one of these neighborhoods for your home rental investment. This multi-use recreational trail is a famous destination for cyclists where they can bike through the spectacular natural sceneries.
Seattle’s Tall Ship
The Seattle’s Tall Ship is a historic 19th-century style gaff-rigged schooner that offers family-friendly sailing tours from Seattle’s downtown waterfront. Getting on this ship is an excellent way to view the Seattle skyline, experience the beauty of the Puget Sound, as well as the surrounding mountains.
Summit at Snoqualmie
This place is around an hour’s drive from Seattle City proper, and it’s a perfect destination during winter. Visitors can enjoy winter fun activities like taking group lessons on some of the best beginner terrains, skiing the back bowls of Alpental, or snow-tubing down a 550-foot hill.
When the weather does not permit exploring the great outdoors, there are still plenty of things to do and experiences to discover while indoors. Seattle is home to a variety of art museums, theaters, shopping centers, and indoor attractions. Here are the top four famous indoor destinations that visitors often go to while in Seattle:
Buying an Airbnb Seattle property somewhere near the Space Needle is a wise investment decision. It was originally constructed for the 1962 World’s Fair and is now known as an iconic Seattle landmark. Visitors often want to experience riding to the top of the Space Needle.
Three of the prominent art museums in Seattle are the Seattle Art Museum, Frye Art Museum, and Henry Art Gallery. These are some of the top destinations for artists and art-lovers while in the city. Real estate investors who are planning to buy investment properties in Seattle should consider the neighborhoods that are close to these art museums.
Sky View Observatory
The Sky View Observatory is the tallest observatory in the emerald city. It is located inside the Columbia Center. Visitors can get 360-degree views of the city, including the Cascade and Olympic Mountains, Elliott Bay, and all of Seattle’s skyline. Short-term rentals near this place are also in demand.
The Seattle Aquarium operates right on the downtown waterfront and it offers plenty of underwater exploration both children and adults would enjoy. Seattle Aquarium is a non-profit that aims to educate people about the importance of Puget Sound.
Mashvisor can help you find the best investment property in Seatle. If you prefer to invest in off-market properties, visit the Mashvisor Property Marketplace to help you get started.
Why Should You Invest in Airbnb Seattle?
Aside from the tourist destinations mentioned above, there are plenty more things to do in Seattle, Washington that make this place a perfect target for vacation. While the booming tourism industry plays an important role in driving the Airbnb business in Seattle, there are other reasons why you should invest in Seattle vacation rentals.
Here are the top two other reasons why investing in Airbnb Seattle WA is a good idea:
1. Seattle Is a Buzzing Business District
Seattle and its nearby areas are home to major corporations such as Amazon, Microsoft, Google, Adobe, and Starbucks. This is the reason why an Airbnb Seattle property will not only attract tourists and vacationers but can also book business-related guests. Since Seattle is a known commercial district, you can anticipate demand for short-term rentals, not only from holiday-goers but also from business travelers.
2. The Airbnb Seattle Market Data Looks Good
One of the most crucial factors to consider when determining whether Seattle makes a profitable Airbnb investment is its market data. Mashvisor’s February 2022 Seattle real estate market data and Airbnb analysis show that The Emerald City is a good place for Airbnb real estate investing.
Let’s take a look at the Seattle Airbnb real estate data from Mashvisor as of February 2022:
- Airbnb Listings: 1,951
- Monthly Airbnb Rental Income: $3,320
- Airbnb Cash on Cash Return: 3.08%
- Average Airbnb Daily Rate: $153
- Average Airbnb Occupancy Rate: 69%
- Median Property Price: $584,958
- Average Price per Square Foot: $618
- Number of Listings for Sale: 32
- Days on Market: 63
- Walkscore: 68
The above Airbnb data shows that short-term rentals in Seattle have a high occupancy rate of 69%. Airbnb Seattle owners earn an average monthly income of $3,320 from Airbnb rentals, with an average daily rate of $153. However, there are currently 32 properties available for sale in Seattle. If you are planning to invest in Seattle Airbnb rentals, you better start looking for an investment property to buy as soon as possible before the inventory runs out.
Related: Buyers Market vs Sellers Market in Real Estate: Everything That You Need to Know
Best Seattle Neighborhoods for Airbnb Rentals
Choosing the right neighborhood is crucial if you want to maximize your Airbnb rental income. The best neighborhoods for Airbnb rentals are those that are near most tourist attractions and business areas. It’s also a good idea to choose a location that is close to public transport. When selecting a neighborhood to invest in, you have to first analyze the Airbnb data, especially the occupancy rate and cap rate, to ensure that you’re choosing a profitable investment.
Based on Mashvisor’s data as of February 2022, here are Seattle neighborhoods with high Airbnb returns and occupancy rates:
- Number of Airbnb Listings: 63
- Monthly Airbnb Rental Income: $5,689
- Airbnb Cash on Cash Return: 5.03%
- Airbnb Average Daily Rate: $204
- Airbnb Occupancy Rate: 64%
- Walkscore: 44
- Central Seattle
- Number of Airbnb Listings: 471
- Monthly Airbnb Rental Income: $2,613
- Airbnb Cash on Cash Return: 4.98%
- Airbnb Average Daily Rate: $145
- Airbnb Occupancy Rate: 75%
- Walkscore: 93
- Green Lake
- Number of Airbnb Listings: 55
- Monthly Airbnb Rental Income: $6,983
- Airbnb Cash on Cash Return: 3.93%
- Airbnb Average Daily Rate: $180
- Airbnb Occupancy Rate: 69%
- Walkscore: 51
- Beacon Hill
- Number of Airbnb Listings: 144
- Monthly Airbnb Rental Income: $4,562
- Airbnb Cash on Cash Return: 3.45%
- Airbnb Average Daily Rate: $150
- Airbnb Occupancy Rate: 63%
- Walkscore: 70
- Number of Airbnb Listings: 463
- Monthly Airbnb Rental Income: $3,005
- Airbnb Cash on Cash Return: 3.28%
- Airbnb Average Daily Rate: $162
- Airbnb Occupancy Rate: 73%
- Walkscore: 94
- Denny Triangle
- Number of Airbnb Listings: 613
- Monthly Airbnb Rental Income: $2,855
- Airbnb Cash on Cash Return: 3.21%
- Airbnb Average Daily Rate: $148
- Airbnb Occupancy Rate: 73%
- Walkscore: 99
If you’re ready to invest in Seattle short-term rentals, you can start by searching for available investment properties using Mashvisor’s Investment Property Search tool. Type in your preferred neighborhood and we’ll provide you with a list of properties available for sale.
What Are the Rules and Regulations for Airbnb in Seattle WA?
Seattle describes a short-term rental as a house, condo, or apartment that is rented for a fee for less than 30 consecutive nights. To operate a short-term rental (STR) in Seattle, you need to secure a business license tax certificate and a regulatory license for STRs. If the Airbnb is not within the home you live in, you must register the separate rental property with the City’s Rental Registration and Inspection Ordinance program (RRIO).
Seattle allows no more than eight people total to occupy a dwelling unit. Seattle vacation rental owners must meet the parking, noise, housing and building maintenance, and other code requirements that apply to the property. You can apply for an STR regulatory license through the Seattle Services Portal. Once the Short-Term Rental Operator Licenses is issued by the City, you must post this license on every listing that advertises or markets the short-term rental property, including listings on online platforms.
If you don’t own the property that you want to rent out as Airbnb, make sure to check Seattle’s rules and regulations on rental arbitrage, including the requirements for licensing.
Subscribe to Mashvisor to Invest in Seattle Airbnb Rentals
Seattle, Washington is one of the most profitable cities for Airbnb investment. If you want to invest in Seattle vacation rentals but don’t know how to start, check out Mashvisor’s subscription plans and services. We can help you find the best Airbnb Seattle property by providing tools, such as the Airbnb calculator, to assist you in your search.
Mashvsior also offers an in-depth real estate market data analysis, including neighborhood comps and the best real estate strategy for a specific investment property. You can start by searching the Mashvisor database, which contains thousands of properties for sale.
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