Lori Weaver, Seattle, Tech Industry & the Seattle Housing Market

Seattle, Washington, is a changing city as more tech companies choose to move headquarters from California or open an additional office in the city. The transition from Silicon Valley to Seattle brings thousands of highly-skilled jobs to the city. As this happens, the housing market in Seattle has experienced significant changes. These are some of the prominent ways the tech industry has changed Seattle's housing market.

Changes in Types of Homes
The average software engineer salary in Seattle is over $100,000. These workers are also often young professionals. Top Seattle tech companies Microsoft and Amazon have a median employee age of 33 and 31, respectively. With a real estate market full of young people with disposable income, they want to live amid the action and in style. This leads to a rise in luxury condominiums downtown and in the surrounding neighborhoods. Since this demographic puts less of an emphasis on settling down, they want smaller homes that make moving easier.

Increases in Demand
Seattle has the fastest-growing tech sector in the country. With the influx of tech workers to the city, the demand for housing increases. High demand and a reduced, affordable supply of housing dominate the market. Thus, properties come with higher rent and sales prices. While the cost of living is still substantially lower in Seattle than Silicon Valley, it does create strain for people with lower incomes. These people have to move to neighborhoods outside of the city for less expensive housing options.

Demand for Renting Over Buying
As new tech employees move to Seattle, they want to establish their careers before buying a home. They also need time to save for a downpayment. This leads to a priority of renting over buying. The overwhelming majority of new housing projects for the city consist of rental properties. Many of the projects slated for development are in neighborhoods close to tech companies, such as downtown and in South Lake Union.

The booming Seattle tech industry primarily impacts the housing market by increasing demand and reducing affordable supply, as the market bends toward accommodating tech workers. The tech industry continues to grow, and these housing market trends are part of the permanent urbanization of the city.

Article originally published on LoriWeaver.co