Tag Archives: Kitsap County Real Estate

Why an Investment Property Can Make Sense in Today’s Real Estate Market

Higher interest rates have changed the real estate market—but they haven’t eliminated the opportunities. For buyers who are thinking beyond simply purchasing a primary residence, income-producing real estate can still offer an appealing combination of current income, long-term appreciation potential, and financial flexibility.

It’s easy to look at today’s mortgage rates and conclude that this isn’t the ideal time to invest in real estate. But interest rates are only one part of the equation.

Real estate investors tend to take a longer view. They consider what a property costs to own, what income it can generate, the strength of the local rental market, the potential for appreciation over time, and how the property fits into their overall financial goals. And, unlike some investments, an income-producing property has the potential to provide two distinct benefits: ongoing rental income and ownership of an asset that may increase in value over the long term.

Rental Demand Doesn’t Disappear When the Market Changes

Regardless of whether home prices and mortgage rates are rising or falling, people need places to live. In fact, when higher mortgage rates make homeownership less attainable for some households, many remain renters longer than they otherwise might.That makes the strength of the local rental market an important consideration when evaluating an investment property.

In Kitsap County, in particular, recent multifamily data has shown improving occupancy. In the second quarter of 2026, Kitsap’s multifamily vacancy rate declined from 7.9% to 7.0%, while average rents increased modestly.

For an investor, however, market statistics are only the starting point. The individual property matters enormously. An established property with long-term tenants can be particularly attractive because there is already a rental history and an existing stream of income to evaluate.

Look for Flexibility as Well as Income

Another consideration is how many ways a property can work for its owner. Some investment properties are strictly investments, while others provide options. A small multifamily property, for example, may allow a buyer to rent all of the units and hold the property as a traditional investment. Or, depending on the property and financing, the buyer may be able to live in one unit while collecting rent from the others.

For the right buyer, that can provide an interesting path into real estate investing. Rental income from the other units can help offset the cost of homeownership while the owner begins building equity in an income-producing asset. Later, that owner might choose to move elsewhere and retain the entire property as an investment.

What makes a good investment property? There isn’t one answer to that question. A good investment property is one whose numbers, location and potential make sense for the particular buyer. Among the factors worth considering are purchase price, current and potential rental income, operating expenses, property taxes and insurance, financing costs, condition of the property, vacancy history, location and long-term demand.

And that’s an important distinction in today’s market: the question isn’t simply whether this is a good time to buy investment real estate. It’s whether a particular property represents a good opportunity.

One Current Opportunity in Port Orchard

That brings me to a property I currently have listed in Port Orchard.

MLS #2452331 | $749,000

This property offers three separate residential units and, importantly, established long-term tenants. For a buyer seeking an income-producing property, that means the opportunity to acquire an existing rental rather than starting with an empty building and finding tenants for every unit. Its location is another important consideration, with convenient access to the hospital, freeway and other Port Orchard-area services and employment centers.

There is also flexibility in how a future owner could use the property. An investor can continue operating it as a three-unit rental property. Or an owner-occupant could potentially live in one unit and rent the other two, subject to existing leases and applicable financing requirements. For someone who has been considering adding real estate to an investment portfolio—or looking for a creative way to combine homeownership and rental income, it’s a property worth exploring.

Look Beyond the Headlines

Today’s real estate market is different from the ultra-low-interest-rate market of several years ago. That doesn’t necessarily make it a bad market for investing. It makes careful property selection and a clear understanding of the numbers more important. A well-located property, an established rental history, dependable tenants and multiple sources of rental income can all change the equation.

If you’re interested in exploring real estate investment opportunities in Kitsap or Pierce County—or would like more information about my Port Orchard property, I’d be happy to talk with you about what you’re looking for and help you evaluate the possibilities.

Doug Lawrence, VAMRES
Managing Broker, Better Properties Gig Harbor
MLS #2452331

Why NW Buyers Are Looking beyond Seattle

For years, real estate conversations in Western Washington have centered on Seattle. While the Seattle market remains influential, many buyers today are discovering that some of the region’s most compelling opportunities can be found throughout Pierce and Kitsap counties.

Having worked with buyers and sellers across the South Sound since 2010, I’ve watched these communities evolve from alternatives to destinations in their own right. What attracts people today isn’t simply affordability—it’s the combination of lifestyle, accessibility, and long-term value that many buyers are seeking.

One of the most significant shifts over the past decade has been how people think about location. Largely since the COVID pandemic that brought work-from-home to the forefront, today’s buyers are no longer focused solely on minimizing commute times to a single employment center. Remote and hybrid work arrangements have expanded the search area for many households, allowing them to prioritize quality of life, outdoor recreation, community character, and housing options that better fit their goals.

As a result, communities throughout Pierce and Kitsap counties have experienced growing interest from buyers who want more space, different neighborhood options, or closer proximity to the natural beauty that defines the Pacific Northwest.

The diversity of housing opportunities across the region is one of its greatest strengths. Buyers can explore established neighborhoods in Tacoma, Fircrest, and University Place, growing communities such as Puyallup and Bonney Lake, waterfront and maritime communities throughout Gig Harbor and Port Orchard, or the unique lifestyle offered by communities across the Kitsap Peninsula. Each area offers distinct advantages, and understanding those differences is critical when making a long-term real estate decision.

Population growth has also continued to support housing demand throughout the broader Puget Sound region. Pierce County has added substantial population growth since 2010, while regional planning projections anticipate continued demand for housing throughout the coming decades. At the same time, housing supply remains a challenge in many communities, contributing to continued interest in well-positioned properties.

What often gets overlooked in national real estate headlines is that real estate remains intensely local. Two homes with similar features can perform very differently depending on neighborhood trends, school districts, transportation access, local development patterns, and community amenities. That’s why local experience continues to be one of the most valuable resources for buyers and sellers. Over the past fifteen years, I’ve had the opportunity to work with clients throughout the South Sound and have seen firsthand how different communities grow, adapt, and create value over time.

Whether you’re considering a move across town, relocating from another part of Washington, or evaluating opportunities throughout Pierce and Kitsap counties, understanding the local market is about more than tracking prices. It’s about understanding communities, recognizing trends, and finding the right fit for your goals.

The Pacific Northwest continues to attract people who value opportunity, natural beauty, and community. Pierce and Kitsap counties remain at the center of that story. If you’re buying or selling, give me a shout; let’s explore the possiblities.

— Doug Lawrence