Seattle home prices have been steadily increasing in recent years. There are several reasons why this is happening. However, a recent Seattle Times expose breaks down a few key factors.
The Seattle Times’ Mike Rosenberg explored the rising home costs in Seattle. We’ll summarize the findings below.
Lack of Supply
The first reason why Seattle home prices are rising is a lack of supply. With fewer homes being built, a lack of inventory is driving up the cost.
….But Demand Remains
In accordance with the basic principles of supply and demand, Seattle home prices are also on the rise because demand still remains. A lack of supply keeps the inventory low. However, when demand stays the same or increases, each home is more valuable and prices increase.
There is also increased competition for homes. King County, which includes Seattle, has seen tremendous growth in population.
In the typical year over the last two decades, the county had 1 home for sale for every 230 people. Now? There’s one home available for every 1,060 people.
This goes back to supply and demand yet again as a driving factor for Seattle home prices. More residents leads to more demand. At the same time, a lack of available homes means there are fewer homes to around. More demand leads to more competition leads to higher prices.
Home Prices Vary
Around the country, the cost of living including home prices varies widely. Seattle home prices are high, as is the case in other parts of the country as well. How high? Depends where you live.
City vs City can help calculate your cost of living by examining local data to determine how much you’re spending to live where you live. City vs City examines costs at the zip code level to determine an accurate look at your true cost of living.
City vs City looks at after-tax income, housing costs, transportation costs, and all major state and local taxes. As a result, City vs City is able to determine how much it costs to live where you live.
City vs City was created to answer a simple question. How much would you need to earn in another city to maintain your current standard of living? If you’re thinking of moving, City vs City can answer this question.
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