Seattle: Modern Day Silicon Valley
Many of my Silicon Valley clients regularly ask me if Seattle's real estate market will continue to grow as rapidly as it has. In short, the answer is: yes. Seattle's market has been expanding exponentially due to various economic factors. Home to many of the world's most significant corporations - Seattle is the breeding ground to Microsoft, Amazon, Starbucks and Boeing to list a few. With other companies migrating to Seattle such as Google and Facebook, this trend will only continue. It's no surprise, Seattle is considered one of the the country's most educated cities - 53.8 percent of the population holding a bachelor's degree or higher (vs. the national average 27.4) and 91.9 percent having a high school diploma or equivalent.
According to Redfin, the number of Silicon Valley residents seeking homes in the Emerald City quadrupled between 2011 and 2015. Furthermore, Redfin a Seattle based Real Estate Firm, found that 25 percent of Silicon Valley residents are looking to relocate because they can no longer afford to purchase a home in the Bay Area. Relative to pay, Seattle prices look better.
A recent poll showed that over 50 percent of interviewees believe that within ten years they will no longer be able to afford the city. "There might be an exodus from the Bay Area to Seattle for now, but as the cost of living in Seattle gets more expensive, that may not be the case in the future" - Geek Wire Journalist and Writer, Madeline Vuong.
According to Seattle Times, "Seattle is the No.1 city in the United States for residents of the San Francisco/San Jose area who are searching for property elsewhere. West Seattle is the favored locale for would-be Bay Area transplants." Furthermore, Northwest Multiple Listing Services reported the average price for West Seattle being $506,600 - up 17.3 percent in the past year and a whopping 83% in the last five years. But, looking at the entire city, the average Seattle house now costs $641,250 - a mountainous figure for the average Seattleite yet a bargain for San Francisco/San Jose transplants where the median home price has now surpassed $1 million. Even though tech jobs in Silicon Valley pay better than anywhere else, they still don't pay well enough to offset the ridiculous cost of housing.
One request for all you Californians making the move: please bring the sunshine with you!
Written by Vlad Popach - Real Estate Broker @ Realogics Sotheby's Int'l Realty. Inquiries? email: vlad.popach@rsir.com
Photo Cred: Holland Photography