Real estate prices in Seattle are certainly rising, but the average household is still spending only 21% of their income on housing – in other words, Seattle remains a financially well balanced place to live. One reason for this is the low interest rates on mortgage payments. While the housing market is certainly fast-paced, the cost of owning a home has stayed relatively low; a 30-year fixed mortgage has interest rates under 4%.
The second half of this equation is of course the increasing incomes in Seattle. The city is ranked as 6 out of 100 of the nation’s most populous cities for high paying jobs. With a concentration of tech and manufacturing jobs, the younger generation has been flocking to Seattle; the average income is over $59k, which is a 2.8% rise from the previous year. The increasing income rates are in direct correlation to the swelling costs of buying a home. With the boom of millennials and potential first time home-buyers, the biggest fear amongst this demographic is that they will miss the opportunity to purchase a home, due to rising real estate costs.