A Seattle Real Estate Investment Opportunity You Don't Want to Miss

Are you looking for a lucrative way to diversify your portfolio and make passive income? Consider investing in an Airbnb rental property in Seattle, Washington.

Named one of the nation's best cities in 2023, Seattle is quickly becoming a popular destination for tourists. This also makes it an ideal spot to capture a slice of Seattle's Airbnb income. For those who already have an investment property in Seattle, this is a great chance to upgrade and maximize your rental potential!

So what exactly makes Seattle a popular Airbnb destination? And what are some of the best neighborhoods to invest in? How much money can you really make?

Let's dive in.

Why Should You Invest In An Airbnb In Seattle?

Seattle is known for its lush greenery, numerous attractions, and vibrant culture. While it may not sport sunny beaches and palm trees, it's an ideal location for tourists searching for outdoor activities, local food, and entertainment. When you invest in an Airbnb in Seattle, you can capitalize on the booming tourist sector while cashing in on the city's high rental demand.

Seattle's Booming Tourism Industry At A Glance

As the fastest-growing U.S. city of the last decade, Seattle is quickly becoming a popular tourist destination. From the iconic Space Needle to the pristine waters of Puget Sound, the Emerald City offers something for everyone. In 2022 alone, Seattle welcomed over 33.9 million visitors, which is only expected to grow in the coming years.

The city's tourism industry received capital gains of $5.6 billion from visitors in 2021, an increase of 43.8% from 2020. In addition, the local hotel industry saw a drastic jump in occupancy, with 2022's occupancy rates finally reaching pre-pandemic levels. These hopeful figures tell us that now is the perfect time to invest in an Airbnb rental property in Seattle.

Plenty Of Things To Do In Seattle, Washington

If you're concerned about how an investment property in Seattle, Washington, will attract tourists, we can assure you there's no shortage of things to do!

From the eclectic urban scene of Capitol Hill to the beautiful parks and gardens of Seattle Southside, there's something for everyone. Visitors of the city can take stunning views of mountains and waterways, go shopping in the famous Pike Place Market, and explore local art galleries. Outdoor enthusiasts can enjoy kayaking on Lake Washington or hiking at the massive Olympic National Park. Then, after a day of adventure, visitors can enjoy the city's renowned restaurants and craft breweries.

Some of Seattle’s most popular attractions include:

• The Museum of Pop Culture (MoPop)

• Chihuly Garden and Glass

• Pioneer Square

• Seattle Aquarium

• Kerry Park

• Woodland Park Zoo

• Space Needle

• Seattle Art Museum

• Washington State Ferry

• Woodinville Wine Country

You're probably thinking, "This all sounds great, but is Seattle really the best place for me to make a long-term property investment?"

Luckily, we've done the homework for you.

What Makes Seattle A Good City For An Airbnb Investment?

When considering investing in an Airbnb rental property in Seattle, this city is an excellent financial move for many reasons. With the average Seattle rent at $2233, investing in an Airbnb in the area can be a great way to capitalize on the city's high rental demand. Plus, compared to traditional rentals, Airbnb offers more flexibility and the potential for a higher annual income.

But don't take our word for it—let's look at Seattle's real estate projections.

Real Estate Projections

The city's current housing market trends are very favorable, with the median sale price increasing by 7.6% year-over-year and rent prices rising as well. The demand is expected to remain high going into 2023, and experts predict that the city's real estate market will continue to grow. In addition, with a booming tourism industry, the potential for short-term rental income is strong in Seattle.

And while Seattle might not be the only city with a booming tourism industry, it is one of the most affordable high-traffic cities in terms of investment cost.

Get More Per Square Foot Compared To Other U.S. Tourist Cities

As of 2023, Seattle’s average price per square foot is at $453, while other tourist hotspots, such as Los Angeles, Key West, and Kapaa, Hawaii, are anywhere up to double the cost per square foot at $642, $949, and $1056, respectively. With Seattle’s competitive real estate pricing, you can cash in on the short-term rental market at just a fraction of the investment.

Sounds promising!

But we're sure you'd like to see the numbers before calling your real estate broker for a mortgage, so let's see what you can expect regarding Seattle Airbnb income.

Expected Seattle Airbnb income

According to Airbnb, from August 2014 to July 2015, there were 2900 hosts in Seattle. They hosted 151,000 guests, earning $30 million in income.

Now let’s take a look at some more up-to-date data. According to Airbitics, the average Airbnb listing in Seattle saw around a 59% occupancy rate in 2022. At an average rate of $139 per night, the expected annual revenue for a Seattle Airbnb investment property is estimated at around $37,356—not bad for a passive income stream!

Interestingly enough, ZipRecruiter's current annual salary for Airbnb hosts is listed as $61,255 per year, which could reflect the recent influx in short-term rental demand. So regardless of where you fall on the range, an investment property in Seattle could double your full-time income at just a fraction of the work.

Now that you've seen the numbers and converted to being a true believer in the potential of a Seattle Airbnb investment, you're probably wondering what the city's most in-demand tourist locations are.

We've got you.

What Are The Best Seattle Neighborhoods For An Airbnb Rental?

The obvious answer is Seattle's famous tourist and entertainment neighborhoods. These locations are often top Airbnb destinations due to their vibrant nightlife and proximity to local attractions. 

Let's have a look at each of these neighborhoods and what they have to offer.

Downtown Seattle

Seattle's downtown area is among the most convenient and sought-after Airbnb rental neighborhoods. With its thriving entertainment scene and abundant attractions, downtown is a popular area for visitors and locals alike. Tourists are bound to opt for an Airbnb close to the waterfront and offers easy access to transportation options like the light rail system.

Some of Downtown Seattle’s most popular features include:

• The Seattle Great Wheel

• Pike Place Market

• Smith Tower Observation Deck

• Seattle Central Public Library

• Seattle Art Museum

Pike Place Market

Located in Seattle's central business district, Pike Place Market is one of the city's most iconic attractions. As a result, it's no surprise that this neighborhood has seen an increase in short-term rental demand and is now one of the best areas for an Airbnb investment. Its vibrant nightlife, unique shops, and stunning waterfront views make it a prime location for tourists and locals alike.

Belltown

On the edge of the downtown core, Belltown is another popular waterfront destination for tourists looking to experience Seattle's art and music scene. Tourists can enjoy the historical music culture at lively jazz venues, such as The Crocodile, after an afternoon of shopping at acclaimed boutiques, such as Sassafras. In addition, the Seattle Center and Olympic Sculpture Park are only a brisk walk away!

Capitol Hill

This up-and-coming neighborhood is a magnet for tourists seeking hip cafes, trendy boutiques, and a diverse crowd. Home to some of Seattle's best restaurants, bars, and music venues, Capitol Hill is an ideal location for Airbnb rentals.

Some must-see spots in Capitol Hill include:

• Volunteer Park Conservatory

• Redhook Brewlab

• Starbucks Reserve Roastery

• Molly Moon's Ice Cream

Pioneer Square

Located just south of the downtown area, Pioneer Square is one of the oldest neighborhoods in Seattle. With its rich history and well-preserved architecture, this area is a must-visit for those looking to get a taste of Seattle's past.

Our Pioneer Square favorites include:

• The Klondike Gold Rush National Historical Park

• Lumen Field

• Smith Tower Experience

• King Street Station

• Waterfall Garden Park

South Lake Union

As one of Seattle's fastest-growing neighborhoods, South Lake Union is ideal for Airbnb renters who prefer a quieter, more quaint location. This neighborhood is booming as professionals can find plenty of opportunities here, especially in the technology field, since SLU is home to significant tech industries such as Amazon’s headquarters and is also a hub for start-ups. With its tech scene, modern architecture, and close proximity to downtown and the waterfront, this area is a top pick for visitors who want to explore all that Seattle has to offer.

To wrap it up, let's look at two of the best ways to ensure that your Seattle Airbnb investment will be as profitable as possible.

How To Ensure Your Seattle Airbnb Is A Successful Investment

Stay On Top Of Your Customer Service

From promptly responding to inquiries to ensuring that your rental is well-maintained and clean before guests check-in, providing high-quality customer service is essential for success.

Hire Professional Airbnb Cleaners

One of the most critical factors that determine a host's earning ability on the platform is their customer rating. And the number one thing guests look for in a rental is cleanliness. 

The best way to secure that rating? A professional Airbnb cleaning service.

When you invest in a professional Airbnb cleaning company, you save time and relieve a massive chunk of the stress that comes with managing a short-term rental. Investing in a monthly cleaning fee means no back-breaking labor and the peace of mind that your listing is always sparkling clean for the next guest.

Plan For The Low Season

During the off-season, it is recommended to assess the potential impact on your occupancy rates, taking into account both the best-case and worst-case scenarios. In the case that Seattle has a seasonal tourism industry, it may be necessary to adjust your pricing strategy to compensate for reduced demand during the low season. Keep in mind the period of time between June and August also tends to be the most crowded in the Seattle area as tourists flock to the region.

An option to consider is blocking out your calendar during the slow period and renting to a traditional short-term tenant for the remaining six months of the year. One of the benefits of investing in an Airbnb property is the flexibility it offers, allowing you to adapt and make strategic decisions as needed.

Start Planning Your Seattle Airbnb Investment Today!

Starting an Airbnb business can be an exciting opportunity, but it's important to keep in mind that there are some risks involved, and a significant initial investment is required. However, don't let that discourage you! The potential for profits is significant, and with proper research and planning, you can set yourself up for success. Just make sure to do your homework so that you invest in the right property and location that will thrive on Airbnb.

We hope this article has given you a better understanding of what makes Seattle one of the best cities for an Airbnb investment in 2023 and how to maximize your ROI.

All that’s left is to start planning your Airbnb investment today. And don't forget to boost your profits with a Seattle Airbnb cleaning service—your wallet will thank you!