Buying a Vacation Home in Leavenworth, WA in 2025: Key Market Insights & Must-Know Regulations

Jul 7

*Vacation Home in Leavenworth, Washington*

Discover current market trends, rental-income potential, seasonal maintenance costs, and short-term rental rules to inform your Leavenworth vacation-home purchase this year.

Market Trends and Statistics

Median Sold Price: $775,500 as of June 2025 (up 14.9% year-over-year)
Median Price per Square Foot: $423
Inventory: 132 active listings in June 2025, up 22.2% from 108 in May

Source: (Rocket Homes)

Key Considerations for Buyers

Rental Potential

Average Rent
As of July 2025, one-bedroom apartments in Leavenworth rent for about $1,615/month, which is roughly 1% below the U.S. average of $1,636/month. (apartments.com)

Prime Locations
Downtown’s Bavarian Village, Stevens Pass ski-area access, and Lake Wenatchee shores consistently command the highest occupancy and nightly rates.

Seasonal Maintenance

Leavenworth averages 96 inches of snow annually, among the highest in Washington State. (bestplaces.net)

Snow-Plow Visit: $30 – $70 per visit for an average residential driveway under 70′

Seasonal Contract: $200 – $600 per season for a limited-visit package

Source: (HomeGuide)

Construction & Renovation Costs

New Home Construction in Chelan County: Building a new custom home typically runs about $200–$400 per sq ft, not including land acquisition or site-prep fees (HomeYou)

Remodels/Renovations in Chelan County: Homeowners paid between $10,345 and $82,764 for home remodeling projects in 2025—costs exclude land and cover labor, materials, and permits (manta.com)

Short-Term Rental Regulations

City of Leavenworth

Short-term rentals are only permitted in commercial zoning districts.

In residential zones, only owner-occupied Bed & Breakfasts (B&Bs) are allowed, subject to an approved Conditional Use Permit (cityofleavenworth.com).

Unincorporated Chelan County (ZIP 98826)

Cap on New Permits: New non-owner-occupied STR permits are capped at 6% of housing units in each sub-area; 98826’s cap is 104 units (co.chelan.wa.us).

Renewal Window: Renewal applications must be filed September 1–October 31 (on-time); renewals Nov 1–30 incur double fees; Dec 1–31 incur triple fees; no renewals accepted after Dec 31 (co.chelan.wa.us).

Short-Term Rental Permit Status

The table below shows the current status of non-owner short-term rentals (Tier 2 & 3) in Leavenworth, Lake Wenatchee, and Peshastin compared to Chelan County’s 6% housing cap, updated June 30, 2025:

  
      Area
      Housing Units
      Cap (6%)
      Current STRs
      Available Slots
      Status
    

  
      Leavenworth (unincorporated)
      1,734
      104
      111
      –7
      Over cap
    

      Lake Wenatchee
      1,041
      62
      117
      –55
      Greatly over
    

      Peshastin (unincorporated)
      604
      36
      23
      +13
      Under cap
    

(Data compiled from Chelan County)

Your Next Step in Securing a Profitable Vacation Rental

With its mix of alpine charm, outdoor recreation, and steady tourism, Leavenworth continues to offer strong long-term value for vacation home buyers. But with evolving regulations and increasing competition for prime properties, timing and strategy matter more than ever. Whether you're looking to invest, retire, or simply escape, understanding the latest market and policy shifts is key to making a smart move in 2025. Contact us today to get started.

Note: Real estate markets are subject to change. It's advisable to consult with local real estate professionals for the most current information and personalized advice.

*Disclaimer: This blog is for informational purposes only and does not constitute financial or real estate advice.

Chase K Lak