Select cities have quietly outperformed Seattle in terms of home price growth
According to data from Zillow, the cities of Tacoma, Bellevue and Everett have all seen average year-over-year home price growth exceed the city of Seattle by 100 basis points or more
June 26, 2019
- While the City of Seattle’s housing market has been regarded as one of, if not the hottest in the country for much of this cycle, other cities across the Puget Sound region have quietly outperformed in terms of price growth over the past six years. According to data from Zillow, the cities of Tacoma, Bellevue and Everett have all seen average year-over-year home price growth exceed the city of Seattle by 100 basis points or more.
- One major factor that may be holding back home price growth in Seattle is multifamily development. Seattle residents have had ample opportunity to rent throughout the city as a healthy multifamily development pipeline has continued producing new units. This has translated to Seattleites renting longer before buying a home, whereas those outside of the city of Seattle have witnessed a multifamily development pipeline that is far less active.
- Another factor, particularly in Tacoma and Everett, may be housing affordability. Many of those looking to buy their first home have found the barrier to entry far too high in the city of Seattle. This has pushed them North or South in search of relative affordability.
- Lastly, as the Puget Sound region becomes increasingly connected via various mass transit projects, home buyers are considering living farther from the core of the market and commuting via rail – particularly with the impending Northgate and Everett Link Extensions. Furthermore, the addition of commercial flights out of Paine Field earlier this quarter – making it the third busiest airport in the state by volume – is sure to open up the Northend further, making it more accessible for businesses and travelers alike.
Source: JLL Research, Axiometrics, U.S. Census Bureau