The state of Washington has some of the most beautiful scenery in the United States, and some would argue, in the world. It’s a geographically diverse state with deserts, valleys, mountains, oceans, rain forests, and more. The Seattle metropolitan area is home to nearly 4 million people and is a bustling area for tech, the arts, and many emerging industries. Seattle and other cities along the Interstate-5 corridor attract new families, single professionals, retirees, and people from all walks of life each year, and as a result, the state of Washington has some of the most sought-after real estate in America.
This article will break down some of the biggest trends in the Washington real estate market in the year 2022, specifically focusing on rental markets.
Before 2021 ended, the average single-family home price in Washington state was about $564,000, reflecting about a 23% YOY increase. Analysts project another 12.3% increase before 2022 ends, meaning the rental market will generally be poised for growth.
While the Seattle metro will always be prime real estate for the rental market, Spokane Valley is one of the top markets in America and primed for significant growth in 2022. This suburb has an average home cost of $352,000, significantly below the state’s average and thus a prime location for purchasing rental properties as demand in the area is expected to surge.
According to Mashvisor, these are the three top rental markets in Washington state in 2022.
1. Clarkston, Asotin
Median Property Price: $362.471
Price per Square Foot: $211.21
Price to Rent Ratio: 25.15 (high)
Monthly Traditional Rental Income: $1.201
Traditional Cash on Cash Return: 2.53%
Average Airbnb Daily Rate: $102
Monthly Airbnb Rental Income: $2.716.38
Airbnb Cash on Cash Return: 4.96%
Airbnb Occupancy Rate: 72.06%
Walk Score: 80
2. Colville, Stevens
Median Property Price: $418,935
Price per Square Foot: $175.51
Price to Rent Ratio: 30.73 (high)
Monthly Traditional Rental Income: $1,136.11
Traditional Cash on Cash Return: 1.95%
Average Airbnb Daily Rate: $115
Monthly Airbnb Rental Income: $2,521.36
Airbnb Cash on Cash Return: 4.43%
Airbnb Occupancy Rate: 71.5%
Walk Score: 76
3. Kelso, Cowlitz
Median Property Price: $474,613
Price per Square Foot: $210.7
Price to Rent Ratio: 26.82 (high)
Monthly Traditional Rental Income: $1,474.75
Traditional Cash on Cash Return: 1.83%
Average Airbnb Daily Rate: $125
Monthly Airbnb Rental Income: $2,288.78
Airbnb Cash on Cash Return: 5.69%
Airbnb Occupancy Rate: 58.8%
Walk Score: 77
These are properties outside of the Seattle market, but properties that are experiencing a significant increase in demand as Seattle prices drive new renters to more suburban locations and attract new state residents who want the experience of Washington living without Seattle prices.
According to a recent study by the University of Washington, with all rental unit types taken into consideration, the influence of apartment mix plays an important role in determining the average rent in a Washington community. King, Walla Walla, and Yakima counties have a higher amount of single-bedroom and studio apartments which will offer a down-pull influence on the overall rent for each area compared to places with a high proportion of 3-bedroom units, which are typically rented at a higher amount. Given these dynamics, King county in Seattle recorded the largest average overall rent as well as the highest rent per square foot of $1,795 and $2.20 per square foot. Yakima County, southeast of Seattle, recorded the lowest average rent of $829 as well as the lowest floor area cost at $1.04 per square foot.
The trend in 2022 is that as home values become less tenable for the average resident, more and more singles and families will begin renting in the suburban areas of Seattle like Olympia, Puyallup, Snoqualmie, Monroe, Everett, and so on, with regions such as Yakima County and Walla Walla county. Spokane is also increasing in popularity as people venture from Seattle, Portland, and other more expensive metropolitan areas on the west coast.
If you’re seeking a great rental property in Seattle proper, some of the best areas to consider are Central District, Ballard, Belltown, Beacon Hill, West Seattle, Queen Anne, and Magnolia.
Capitol Hill is one of Seattle’s most popular rental areas with rents ranging from about $675 to $8,049, with an average rent of $3,228.
Spokane, Walla Walla, and Tacoma are three markets positioned for massive rental demand in 2022, with significantly lower housing costs and high demand from Seattle residents and newcomers to Washington. Walla Walla lies on the Washington-Oregon line, and the median home value in Walla Walla is $278,000, with home values going up almost 4.5% over this past year.
If you’re a Washington landlord looking to capitalize on the state’s white-hot real estate market, www.EZlandlordforms.com makes it easy for Washington state landlords because they have state-specific lawyer-written rental agreements just for you.