Is Seattle’s Real Estate Bubble About to Burst?

October 31st, 2017  |  By Lynn Post

Seattle skyline in the winter
"Listen to audio version"
1:17

Not anytime soon, according to this Seattle Times article by Mike Rosenburg. Seattle has been the hottest real estate market in the country for a full year, with housing costs growing more than double the national rate. As we all already know, rental prices have also been on the rise—at almost the fastest rate in the country, with the average two-bedroom apartment now over $2,000. According to Rosenburg, this is “pushing more people into the homebuying market.”

But with an average price tag of $725,000 (and rising) for a single-family home, that would mean a household earning the median income of $80,000 would be paying around 50 percent of their monthly income toward their mortgage.

Fortunately, the initial surge of rental rates seems to have slowed down a bit. But it's impossible to talk about housing costs without also discussing the homelessness issue, which was declared a "state of emergency" two years ago, with little being done so far to fix it. So it will be interesting to see what effect a continued "hot" housing market, the election of a new mayor, and ramp-up of efforts by the City Council will have on future rental affordability, job wages, and the homelessness crisis.

Next Post

    Latest Posts

    Home model and red arrow graph with growing value

    Seattle Multifamily Market Forecast: What Property Owners Should Expect in 2025

    Read Full Post
    A man in a suit handing keys to a couple in a new home

    Vacancy Is Expensive: Proven Leasing Strategies for Seattle’s Competitive Market

    Read Full Post
    A contractor with maintenance tools inside a home

    Cash Flow Killers: 5 Maintenance Mistakes Multifamily Owners Make

    Read Full Post
    A judge gavel in front of a model home

    Seattle's first-come, first-served Rental Law Rejected by Judge

    Read Full Post

    Subscribe To
    Receive The Latest News

    Similar Posts

    By Jay  |  Jun 16 2016

    City of Seattle Vs Airbnb - the future of short term rentals

    Over the last few years, all of us who are in the Seattle property management business have seen the...

    By Larry  |  Dec 7 2016

    As housing costs soar, Seattle becomes nation’s top roommate city

    As living solo becomes more expensive, finding a roommate is essential for many city residents. Seat...

    By Jay  |  Feb 9 2016

    As elsewhere - RPA sees a lack of housing inventory a game changer

    For February - Depleted inventory is contributing to "overwhelming" traffic at open houses, shifts i...