Why Are Homes So Expensive In Seattle?

From a supply and demand perspective, Seattle has one of the most imbalanced housing markets in the entire country. With the increasing need for homes and an increase in competition, there are just not enough houses for sale in Seattle. Too many buyers and not enough Seattle luxury homes cause a huge margin of difference in the real estate market of Seattle.

Strong buyer demands, Low-interest rates, and tight inventory are the major factors that affect the bidding prices in Seattle’s housing market. Prices are predicted to see a surge in the upcoming years, which is good for business for the sellers. But this raises the long-coming issue of houses for sale near Seattle being affordable to its buyers.

The Seattle Housing Market

The active listings in Seattle’s housing market have dwindled relatively in the past few years, majorly due to the affordability factor. The condos comparatively have reasonable pricing as compared to single-family homes, starting with a median price of less than $500,000. Single-family homes have a median price pitch of $830,000, which is approximately 80% higher than condos.

Three and four-bedroom apartment complexes remain to be the most common housing units in Seattle’s housing market. Single-family homes comprise about 40% of the housing units in the city. Other types of housing units that are available on the grid are single-family detached homes, duplexes, rowhouses, etc.

Why is The Demand For Housing in Seattle so Fierce?

Seattle is an owner-occupied as well as a renter-occupied housing city. Seattle is a second-tier technology hub, held together by multimillionaire companies such as Amazon, Boeing, F5, and Real Networks. Several startups choose to begin their companies in this city, given the strong technological environment provided. Tech giants also set up outposts, meaning a small colony like the headquarters, in the city. These tech giants move to Seattle in hopes of expanding or simply to afford remaining in the business.

This influx of well-paying jobs brings the need for homes where the employees can reside in the city. Even though the median price for homes in Seattle has seen a hike by 47%, meaning it has risen from $420,000 to $720,000 in the last few years, the growth in the local housing market is higher than ever.

Why is Investing in Seattle a Good Option?

Investors are often skeptical about investing in the city, given the fact that Seattle’s housing market is overpriced. However, there are plenty of reasons that draw the investors in:

  • Seattle’s housing market is the largest in the state of Washington as well as the Pacific Northwest, housing close to 700,000 people.
  • The housing market is wider, as it extends to about four million people in the Seattle metro area.
  • Falling interest rates and declining inventories lead to bidding among the buyers.
  • Seattle has a track record of being a good long-term real estate investment in the entire country.
  • Seattle also has impressive economic and job growth, with employment rates rising rapidly in the city.

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