Sleepless in Seattle: Uncovering the Airbnb Scene
Introduction
The first time I travelled to the United States in June 2019, I fulfilled a long-standing dream by exploring New York City. From the bustling streets of Times Square to the historic grounds of the 9/11 Memorial, each site had its tale. However, the hotel prices were a stark reminder of the city’s excessive cost of living — around 69% above the national average, with housing costs soaring 188% higher. This experience piqued my interest in exploring alternative accommodation options, such as Airbnb, for my next visit to the United States and possibly Seattle, a city known for its vibrant tech scene and cultural richness.
According to Wikipedia, Seattle is a seaport city on the West Coast of the United States. It is the seat of King County, Washington. With a 2022 population of 749,256, it is the most populous city in both the state of Washington and the Pacific Northwest region of North America, and the 18th-most populous city in the United States. The Seattle metropolitan area’s population is 4.02 million, making it the 15th-largest in the United States. Its growth rate of 21.1% between 2010 and 2020 made it one of the country’s fastest-growing large cities.
According to insideairbnb.com, Seattle has 6882 listings as of December 2023 showing a significant and well-established presence. For this project, I decided to analyze Airbnb data from the Seattle area to pick insights that would later inform business action. I will make an analysis based on an Airbnb dataset for Seattle for the year 2016. The business questions are,
1. What are the room type preferences in the Seattle Airbnb market?
2. What are the property types hosts have offered for the Seattle Airbnb market?
3. What are the price distributions for the different room types offered for the Seattle Airbnb market?
4. Which neighborhoods in the Seattle area have the most property listed?
Data and Analysis
Property Analysis
There are various property types in Seattle. The five most common are houses, apartments, townhouses, condominiums, and lofts in that order. These property types might be popular due to the amenities and privacy they offer. Houses, apartments and townhouses might be popular with families due to the number of people they can accommodate.
Neighborhood Analysis
Different neighborhoods in Seattle have distinct levels of investment by Airbnb hosts. The neighborhoods with the most investments in terms of listings are Capitol Hill, Downtown, Central Area, Queen Anne, and Ballard. Capitol Hill serves as one of Seattle’s most popular nightlife and entertainment districts according to Wikipedia. It has a rich architectural diversity, and is home to numerous arts venues, including theatres, art galleries, and music clubs, making it a cultural hotspot in Seattle. These features, coupled with beautiful parks, a variety of dining options and good public transport connections might explain its popularity for Airbnb listings.
Guest Room Type Preference
Airbnb guests in Seattle prefer to book entire homes (67%). Private rooms come second (30%) with shared rooms (3%) being the least preferred.
Price Analysis
Entire homes cost between $100 and $175 per night, private rooms cost between $60 and $80 per night and shared rooms cost between $40 and $60 per night. The different price points might be influenced by location, season, or amenities.
Conclusion
- The typical price, for properties varies widely ranging from $20 to $1000, with an average of $128. This shows that there is a range of options to suit different budgets. A typical entire house can accommodate up to ten people using up to four bathrooms, six bedrooms and seven beds. A typical 2-bedroom house going for $40 per night can accommodate four people and has one bathroom. Privacy costs money. Entire homes or apartments have the highest prices while shared rooms are cheapest.
2. Houses and apartments are the top choices for guests, on Airbnb. A guest who stayed in a $250 apartment left the following review/comment “Hostess with the most-est! The room was exactly what we needed after a long bus ride back from Vancouver. The bed was so comfortable AND smelled great. Plenty of towels — magnificent. She was so sweet by having little snackies (ie. granola bars and tea) and a brita filter available.” The guest enjoyed her stay.
3. For an investor seeking to set up an Airbnb business in Seattle, Capitol Hill, Downtown, Central Area, Queen Anne and Ballard might be the best bets. Capitol Hill is a popular area for rentals, including Airbnb listings, due to its central location and the lifestyle it offers.
“Have you experienced Airbnb in Seattle or another major city? Share your stories or tips below!”
