With a laid-back lifestyle, community-oriented neighborhoods, and great jobs available, it’s easy to see why Seattle continues to draw young professionals year after year. Several big corporations like Amazon, Microsoft, and Costco, contribute to a strong and stable job market.
Real estate investment opportunities are endless in this Evergreen State with one of the hottest housing markets in the nation. Despite relatively low inventory, the high demand created by thriving employment, and a 40% renter fraction, investors will have plenty of attractive options in 2022. Here are our top picks for the best Seattle neighborhoods for young professionals.
TIP: Wondering whether you’re ready to take on an investment property in Seattle? Baselane’s Rental Property ROI Calculator can help you better understand if a rental property is a good deal.
1. Capitol Hill
- Median home price: $630,000
- Median price per square foot: $682
- Rental vacancy rate: 14.85%
- Distance to city center: 1.9 mi
- Access to public transportation: Link light rail, bus, streetcar
- Median rental income: $2,050/month
Capitol Hill sits just a few miles northeast of central business hubs in Seattle. Notorious for trendy restaurants, the best bars in Seattle for young adults, and the city’s LGBTQ+ community, this hood will have your entertainment meter maxed.
This densely populated region of over 32,000 is buzzing with fun restaurants, boutique shops, and spacious parks, giving singles and young professionals plenty of ways to get out and about. If residents need to get to other parts of DC, Capitol Hill has a Metro station within walking distance of most homes.
With the pandemic slowdown long gone, the cost of renting in Seattle has surged 18% in the past year. However, most renters won’t bat an eye at the additional cost, with an average household income of $174,896. These numbers, paired with a high demand for housing and low vacancy rates, provide landlords with the opportunity to continue increasing rental prices.
2. Belltown
- Median home price: $538,800
- Median price per square foot: $749
- Rental vacancy rate: 6.6%
- Distance to city center: 0.9 mi
- Access to public transportation: Link light rail, bus, streetcar
- Median rental income: $2,500/month
With homes and high-rise condos, an abundance of restaurants, bars, and retailers, and its spectacular waterfront perch, Belltown exemplifies urban living at its best. Consider this one of the best neighborhoods in Seattle for young couples and professionals. Especially those who don’t like sitting in traffic or are looking for a spot where they don’t need a car.
Out of the 27,051 inhabitants who call Belltown home, most of its residents are young singles, urban power couples, and high-income executives, also known as ideal tenants. With one of the hottest real estate markets in Seattle, finding a rental property in Belltown will be a breeze.
This formerly low rent, semi-industrial arts district recently transformed into a trendy neighborhood. Rent-paying tenants occupy 81% of Belltown’s properties compared to Seattle’s much lower rental rate of 52%. The average rent of $2,500 is also a 30% increase from the previous year, indicating a faster return on investment for landlords.
3. South Lake Union
- Median home price: $550,500
- Median price per square foot: $722
- Rental vacancy rate: 13.9%
- Distance to city center: 2.1 mi
- Access to public transportation: Link light rail, streetcar, bus
- Median rental income: $2,799/month
Young professionals know Seattle is the hub of tech companies, and South Lake Union is the perfect place for STEM workers with high-tech jobs. This 170-acre community of 31,000 is home to Amazon and sits along the banks of Lake Union, making it the ideal spot to stay active or unwind with some waterfront scenery.
South Lake Union has access to fantastic transportation options getting you to and through the city on the streetcar, light rail, or bus. And while public transit is a plus for being a resident in one of the best places to live in Seattle for young professionals, its streets are completely pedestrian and bike-friendly.
It’s easy to see why South Lake Union is ideal for real estate investors looking to cash in. This area has one of the highest rental incomes and lowest pricing for Seattle houses for sale on our list, only increasing by 1.9% in the past year. With nearly 78% of real estate properties occupied by renters, landlords have a low barrier for entry into a high-volume market.
4. Ballard
- Median home price: $1,100,000
- Median price per square foot: $616
- Rental vacancy rate: 2.1%
- Distance to city center: 6.7 mi
- Access to public transportation: Link light rail, bus
- Median rental income: $2,804/month
Ballard is the perfect compromise for young professionals looking to live close to the city’s heart without the premium price tag. With housing options ranging from single-family homes to newly-constructed condos and luxury apartments, there’s everything young adults could want or need in a big city.
Originally considered a separate city, Ballard is one of Seattle’s biggest and trendiest spots, with over 28,000 residents. Home to some of the best seafood and restaurants, this walkable urban core boasts many community-oriented activities like farmers’ markets, indie stores, and craft breweries.
While housing prices sky-rocketed in Ballard (the median home price sitting at $1.1 million), the high demand and low rental vacancy of 2.1% indicate a low tenant turnover. Since rent control is illegal in the state of Seattle, landlords have no restrictions on raising rent prices as long as adequate notice is given and in line with the lease terms.
5. Fremont
- Median home price: $805,000
- Median price per square foot: $641
- Rental vacancy rate: 4.9%
- Distance to city center: 6 mi
- Access to public transportation: Bus
- Median rental income: $2,815/month
Fremont is known for tight-knit communities of hipsters, artists, and tech professionals. Sitting just north of Downtown, nearby companies like Adobe and Google draw a particularly funky and quirky crowd. Fremont’s unofficial motto is Libertas Quirkas, meaning “freedom to be peculiar.”
Most housing options in this vibrant area are rentals, including large apartment complexes and one-bedrooms, averaging an affordable price point of $1,845. While smaller listings make Fremont the best place to live in Seattle for young adults on a budget, the average household income of $136,968 is enough to support the upward trend of pricing increases that sit around 7% year-over-year.
The median real estate price is $1,126,546, which is more expensive than 92.3% of the cities in Washington. Although the average rental price of $2,815 brings in 80% more rent than other areas in Washington. Fremont has great prospects and earnings to gain if you have the capital to invest.
6. Queen Anne
- Median home price: $1,750,000
- Median price per square foot: $652
- Rental vacancy rate: 7.8%
- Distance to city center: 2.5 mi
- Access to public transportation: Link light rail, bus
- Median rental income: $2,095/month
The hills are abuzz with adventure, spectacular scenery, and indie shops in this Seattle district. Queen Anne is the perfect example of blended residential and commercial living. Adjacent to Downtown, it has all the iconic landmarks of Seattle, like the Space Needle and Chihuly Glass and Garden.
Although Queen Anne is more expensive than some of Seattle’s other neighborhoods, Lower Queen Anne features a lot of affordable apartments that can range from $1,355 for a studio to $2,600 for a 2-bedroom apartment. With a selection of bars, restaurants, coffee shops, and reasonable rent prices, this city is perfect for students and young professionals.
Just this past month, the average rent for a studio apartment in West Queen Anne increased by 24%, with a total 14% increase over the past year. Landlords will need to invest more upfront to break into the market, but the average household income of $140,802 and 51% of households being renter-occupied indicate stability for rent collection.
Is Seattle a Good Real Estate Investment?
Take the time to speak with an agent who lives in your areas of interest and use our Rental Property ROI Calculator to evaluate the next Seattle Rental property deal.
FAQs
The core industries in Seattle include clean technology, manufacturing, life sciences, information technology, global health, and startups. White-collar jobs make up 91.59% of the working population in Seattle, while blue-collar employees account for 8.41%. There are also 45,272 entrepreneurs in Seattle, 301,517 workers employed in private companies, and 56,878 working in government institutions.
Seattle has a healthy job market compared to similar-sized metro areas. The unemployment rate of 3.1% falls just below the national average of 3.6%. Residents are also pulling in a higher average annual income of $66,385 compared to the national average of $53,490. Stable job growth indicates a strong supply of young professionals looking for rental properties.
There are approximately 741,251 residents living in Seattle, Washington. Of the 344,629 available households, 55% are renter-occupied. Properties bought with mortgages account for 72.22% of the units, with a median value of $717,400. Housing costs reach $1,850 per month in Seattle. Use our Rental Property ROI Calculator to evaluate your next Seattle Rental property deal.
