In typical Seattle fashion, the housing market is a roller coaster. Even though rent prices have dropped both nationwide and locally, living in the Emerald City is still very expensive. Redfin has released a new report on how much Americans need to earn in order to live in cities across the nation and it’s time to see where Seattle sits.
Redfin’s new report found that on average, a “homebuyer must earn $107,281 to afford the $2,682 monthly mortgage payment on the typical U.S. home” this is up “45.6% from $73,668 a year ago.” The increase is due to mortgage rates which have more than doubled over the last 12 months and persistently high home prices.
The annual household income necessary to afford a monthly mortgage payment has stayed relatively the same in recent years but began climbing at the beginning of last year.
How much income do you need to purchase a home in Seattle?
Redfin calculated the annual income required to afford a median-price home in Seattle as of October 2022 at a whopping $205,312. For comparison, the annual income needed last October sat at $140,982. That means there’s been a 45.6% year-over-year change in income required to afford a median-priced home. Yikes!
If you’re feeling a bit jaded about the cost of local housing, why not check out some extravagant local homes currently on the market? Right now you can check out Kenny G’s former home or the former home of a De Beers Diamond heiress. We’ll keep our fingers crossed for a more reasonable housing market in 2023.