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Redmond, Washington is one of the most populous cities in the Seattle metro area, with a growing population and a strong economy fueled by the tech industry. In fact, Redmond is one of the best places to invest near Seattle.
Redmond is also a great place to buy investment homes, for a variety of reasons that will soon become apparent.
This guide provides all of the information you need to know about Redmond real estate investment properties and how to navigate the local investment market.
Redmond, Washington, is a city located in King County, east of Seattle. It’s a key part of the Greater Seattle metropolitan area, known for having a strong tech industry presence and being the headquarters of Microsoft.
As of 2025, Redmond, Washington is the eighth most populous city in King County and the seventeenth most populous city in the State of Washington. It currently has a population of around 80,280 residents, up from 73,256 in 2020.
Redmond is situated within the “Eastside” of the Seattle region, which includes other thriving cities like Bellevue and Kirkland. This area is known for its high quality of life, excellent schools, and proximity to outdoor recreation opportunities.
According to the official City of Redmond website:
“The city prides itself for its high quality of life with good schools, a healthy economic base, a parks system that provides a variety of active and passive recreational opportunities, diverse offerings for shopping and dining, safe neighborhoods, and an emphasis on quality development and protection of the natural environment.”
So, is Redmond, Washington a good place to buy investment properties?
While every real estate market has its pros and cons, the advantages of buying investment properties in Redmond tend to outweigh any downsides.
Here are some of the main benefits for investors:
Before buying investment properties in Redmond, it helps to bring yourself up to speed on local market conditions. Here are some noteworthy Redmond real estate trends to expect and plan for.
The city of Redmond is a fairly expensive real estate market, even by Seattle metro area standards. Because of this, investors often have to rely on specialized home loan products.
As of early 2025, the median home value for Redmond, Washington was $1,366,726 (per Zillow), following a gain of 10% over the previous 12 months.
This stat reveals two things. Redmond home prices in 2025 exceed the metro and regional average by a wide margin, and they tend to rise steadily from one year to the next.
These higher than average home prices create both challenges and opportunities for real estate investors. The significant upfront capital requirements can make it difficult for investors to enter the market. But it also increases demand among renters who cannot afford to buy a home.
The Redmond WA housing market has experienced a supply shortage for years. When this article was published in early 2025, the city had less than a two-month supply of homes for sale, well below the national average.
And once again, this brings both good news and bad news for investors. Tight supply conditions increase demand for housing while boosting home prices over time. The downside is that it can be hard to find investment properties in Redmond.
Given the supply conditions mentioned above, it should come as no surprise that the Redmond real estate market moves at a fast pace.
Currently, more than half of all homes end up selling in two weeks or less. This market has a fast sales pace by Seattle-area standards and is well below the national average for time on market.
Because of this, traditional home buyers and investors alike often have to submit their offers on the spot, while viewing a particular property.
The Redmond real estate market also has a fairly high percentage of homes that sell for more than the list price. This occurs when multiple buyers compete for the same property, driving up the final sale price.
Investors seeking a home in Redmond often encounter bidding wars. So you have to enter the market with a firm budget in mind and know when to walk away.
Redmond offers several high-potential neighborhoods for real estate investment, each with unique benefits. Here’s a breakdown of the top areas:
Downtown Redmond is a rapidly growing urban center with new mixed-use developments. There is strong rental demand due to proximity to tech companies and walkability to amenities.
The Light Rail Expansion (2025) will further boost property values and rental demand. This area is ideal for condos and townhomes, which are more affordable than single-family homes in this high-demand area.
Overlake is close to Microsoft headquarters, making it one of the hottest rental markets. Future expansion of the East Link Light Rail (2025-2026) will improve connectivity.
This area boasts high demand for apartments, condos, and townhomes from tech professionals. Some redevelopment projects could create opportunities for appreciation.
Education Hill is a highly desirable residential neighborhood with top-rated schools. It’s also great for long-term rental income, as families prefer stability and high-quality housing.
The area features primarily single-family homes, which offer strong appreciation potential. There is also less turnover compared to downtown and Overlake rentals, making it ideal for buy-and-hold investors.
This area is more affordable than central Redmond, with a mix of newer and older homes. There is lower competition for properties compared to Downtown or Overlake.
The close proximity to hiking trails and outdoor amenities attracts long-term renters and buyers. Properties have strong appreciation potential as Redmond expands outward.
Bordering Kirkland, Grass Lawn gives residents access to a larger employment hub. The area is attractive for professionals working in tech, healthcare, and biotech. Properties include a balanced mix of single-family homes, townhomes, and condos for diverse investment options.
Investors have a wide range of Redmond investment property financing options available. The key is to choose the right loan type based on your specific needs.
Here are some of the most popular choices used by real estate investors:
Do you need financing in Redmond, WA? If so, we can help. Sammamish Mortgage has been helping Seattle-area home buyers and investors since 1992. Please contact us if you need financing to buy a home in Redmond, or visit our website to get an instant rate quote.
Whether you’re buying a home or ready to refinance, our professionals can help.
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No Obligation and transparency 24/7. Instantly compare live rates and costs from our network of lenders across the country. Real-time accurate rates and closing costs for a variety of loan programs custom to your specific situation.