Top 5 Residential Real Estate Investment Markets in Washington

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By Trent Seigfried Updated June 5, 2024
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Edited by Michael Yessis

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Newman Lake is home to the best residential real estate investment market in Washington.

The 99025 zip code in Newman Lake presents the greatest opportunity for investors among the 1,120 individual real estate markets in Washington we evaluated. We looked at property values, population trends, and six other metrics for each market. We used that data to calculate each market's InvestScore.

Top 5 Washington residential real estate markets

RankCity InvestScore Affordability Property value appreciation
1Newman Lake1004.163.19%
2Raymond98.74.2102.16%
3Moxee97.84.157.53%
4Ephrata97.14.670.04%
5Soap Lake924.767.95%
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1. Newman Lake

We've identified the 99025 zip code in Newman Lake as Washington's best real estate investment market. Here's why.

πŸ”Ž Key data about Newman Lake

Data pointValueRank in state (of 1,120 markets)
Zip code99025N/A
InvestScore 100Highest
Typical property value $463,842[1]74th lowest
Five-year appreciation 63.19%[2]34th highest
Household income $112,298[3]62nd highest
Affordability ratio 4.14th most affordable
Five-year population growth 11.4%[4]74th highest
Unemployment rate 1.9%[5]4th lowest
Property taxes $3,506[6]104th lowest
Educational attainment 25.9%[7]182nd highest
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Newman Lake (zip code 99025) is the best residential real estate investment market in Washington. It has the 34th highest property value appreciation among markets we evaluated, with a 63.19% appreciation of the typical property over the last five years.

Newman Lake is the 4th most affordable market among the 1,120 Washington markets we evaluated, with an affordability ratio of 4.1.

2. Raymond

The 98577 zip code in Raymond is Washington's second-best residential real estate investment market.

πŸ”Ž Key data about Raymond

Data pointValueRank in state (of 1,120 markets)
Zip code98577N/A
InvestScore 98.72nd highest
Typical property value $284,578[8]9th lowest
Five-year appreciation 102.16%[9]the highest
Household income $67,212[10]231st highest
Affordability ratio 4.26th most affordable
Five-year population growth 13.7%[11]50th highest
Unemployment rate 4.7%[12]138th lowest
Property taxes $1,969[13]18th lowest
Educational attainment 19.9%[14]239th highest
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The 98577 zip code in Raymond features a typical property value of $284,578, the 9th lowest in the state.

Property values have appreciated 102.16% over the past five years, the the highest increase among evaluated markets in the state. Raymond homes have an affordability ratio of 4.2, the 6th most affordable in the state.

3. Moxee

The 98936 zip code in Moxee comes in at No. 3 in our ranking of residential real estate investment markets in Washington.

πŸ”Ž Key data about Moxee

Data pointValueRank in state (of 1,120 markets)
Zip code98936N/A
InvestScore 97.83rd highest
Typical property value $380,857[15]38th lowest
Five-year appreciation 57.53%[16]77th highest
Household income $92,860[17]127th highest
Affordability ratio 4.13rd most affordable
Five-year population growth 26.2%[18]11th highest
Unemployment rate 3.6%[19]54th lowest
Property taxes $2,749[20]55th lowest
Educational attainment 18.1%[21]249th highest
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With a typical property value of $380,857, Moxee's 98936 zip code features the 38th lowest property values in the state.

Moxee homes have an affordability ratio of 4.1, the 3rd most affordable among the markets we evaluated.

4. Ephrata

The 98823 zip code in Ephrata ranks No. 4 among Washington's residential real estate investment markets.

πŸ”Ž Key data about Ephrata

Data pointValueRank in state (of 1,120 markets)
Zip code98823N/A
InvestScore 97.14th highest
Typical property value $309,864[22]15th lowest
Five-year appreciation 70.04%[23]8th highest
Household income $67,031[24]8th highest
Affordability ratio 4.613th most affordable
Five-year population growth 11.7%[25]70th highest
Unemployment rate 4.3%[26]107th lowest
Property taxes $1,789[27]14th lowest
Educational attainment 14.9%[28]266th highest
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Property values in Ephrata's 98823 zip code have seen the 8th highest increase among evaluated markets in the state, with an appreciation of 70.04% over the past five years.

Ephrata's affordability ratio of 4.6 makes it the 13th most affordable among the 1,120 markets we evaluated.

5. Soap Lake

The 98851 zip code in Soap Lake rounds out our top five residential real estate investment markets in Washington.

πŸ”Ž Key data about Soap Lake

Data pointValueRank in state (of 1,120 markets)
Zip code98851N/A
InvestScore 925th highest
Typical property value $305,175[29]13th lowest
Five-year appreciation 67.95%[30]12th highest
Household income $64,810[31]12th highest
Affordability ratio 4.716th most affordable
Five-year population growth 24.5%[32]15th highest
Unemployment rate 8.2%[33]263rd lowest
Property taxes $1,584[34]7th lowest
Educational attainment 14.6%[35]269th highest
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Property values in Soap Lake's 98851 zip code rose 67.95% over the last five years, ranking the city 12th highest among evaluated markets in Washington.

Soap Lake homes have an affordability ratio of 4.7, the 16th most affordable among the markets we evaluated.

How we rank residential real estate markets in Washington

We evaluated 1,120 markets on eight metrics, and then assigned an InvestScore based on their weighted and combined rankings. Each market corresponds to a specific zip code in Washington.

What is InvestScore?

InvestScore is a score on a scale of 0 (worst in state) to 100 (best in state) that estimates the residential real estate investment potential of a given market. It takes into account a suite of key data points for each city.

  • Typical property value: This measures the typical home value in this zip code, according to the Zillow Home Value Index. It reflects the typical value for homes in the 35th to 65th percentile range, including all homes, with the numbers smoothed and seasonally adjusted. We prefer lower property values, which indicate both more room for growth and a greater ease of purchase. We assign a weight of 20% to typical property values.
  • Property value appreciation: This measures how much property values have increased in the area over the past five years, according to the Zillow Home Value Index. We prefer a higher appreciation, as it indicates better returns on housing. However, past performance isn't indicative of future results. We assign a weight of 20% to property value appreciation.
  • Median household income: This is the inflation-adjusted median household income in the zip code, according to U.S. Census American Community Survey data. We prefer a higher household income, as it indicates local residents have more income to spend on housing. We assign a weight of 10% to median household income.
  • Affordability ratio: This is the ratio of the typical home value to the median household income in the area. A lower ratio is better because it means more households can afford a home, which indicates higher demand. We assign a weight of 15% to the affordability ratio.
  • Population growth: This is how much the area's population has grown over the past five years, according to U.S. Census estimates. Higher is better, as it indicates residents are moving into the area at a rapid clip. We assign a weight of 10% to population growth.
  • Unemployment rate: This is the unemployment rate in the area, according to U.S. Census data. We prefer a lower rate, as it indicates the availability of steady employment in the area, meaning residents will find it much easier to afford homes. We assign a weight of 15% to unemployment rate.
  • Property tax: This is the median real estate property tax paid in the area, according to U.S. Census estimates. We assign a weight of 10% to property tax.
  • Educational attainment: This is the percentage of residents in the area that have obtained a bachelor's degree or better, according to U.S. Census estimates. We prefer a higher rate because it indicates  local residents who have higher earning potential and thus should be able to afford homes. We assign a weight of 15% to educational attainment.

Disclaimer: The information contained in this article isn't intended as, and shall not be understood or constituted as, financial advice. The information in this article isn't a substitute for financial advice from an investment professional or real estate agent who is aware of the facts and circumstances of your financial situation or the specifics of any individual property.

Article Sources

[1] Zillow – "Zillow Home Value Index". Updated March 31, 2024.
[2] Zillow – "Zillow Home Value Index, difference over last five years". Updated March 31, 2024.
[7] U.S. Census – "U.S. Census Table S1501 - Educational Attainment 2018-2022". Updated 2018-2022.
[8] Zillow – "Zillow Home Value Index". Updated March 31, 2024.
[9] Zillow – "Zillow Home Value Index, difference over last five years". Updated March 31, 2024.
[14] U.S. Census – "U.S. Census Table S1501 - Educational Attainment 2018-2022". Updated 2018-2022.
[15] Zillow – "Zillow Home Value Index". Updated March 31, 2024.
[16] Zillow – "Zillow Home Value Index, difference over last five years". Updated March 31, 2024.
[21] U.S. Census – "U.S. Census Table S1501 - Educational Attainment 2018-2022". Updated 2018-2022.
[22] Zillow – "Zillow Home Value Index". Updated March 31, 2024.
[23] Zillow – "Zillow Home Value Index, difference over last five years". Updated March 31, 2024.
[28] U.S. Census – "U.S. Census Table S1501 - Educational Attainment 2018-2022". Updated 2018-2022.
[29] Zillow – "Zillow Home Value Index". Updated March 31, 2024.
[30] Zillow – "Zillow Home Value Index, difference over last five years". Updated March 31, 2024.
[35] U.S. Census – "U.S. Census Table S1501 - Educational Attainment 2018-2022". Updated 2018-2022.

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