Seattle homebuyers need record-high income for median-priced home

Seattle’s housing affordability took a hit in 2024 as home prices climbed, requiring buyers to earn a record-high income to afford the median-priced home.

According to a new Redfin report, a household needed to make at least $126,034 annually to keep housing costs below 30% of their income — higher than the city’s median household income.

Keep reading to learn more about the report and the average amount Seattle homeowners spent on housing costs in 2024.

Average Seattle home prices in 2024

By the numbers:

Seattle home prices reached a median of $831,457 in 2024, with median monthly housing payments rising to $5,681. This means homebuyers in Seattle spent 54.1% of their earnings on housing costs, a 1.1% increase from 2023.

The rising costs make Seattle one of the least affordable housing markets in the country.

Housing demand kept homeownership out of reach for many buyers in 2024

Soaring Home Prices:

Despite a slight national improvement in housing affordability due to wage growth outpacing mortgage rate increases, Seattle bucked the trend as home prices continued to soar. 

The city’s high demand for homes and limited inventory have kept competition fierce for homebuyers.

How does Seattle's housing market compare to other parts of the US?

Big picture view:

Nationally, a homebuyer needed to earn at least $116,782 to afford the median-priced U.S. home, which cost $429,734 in 2024. 

While some metro areas saw affordability improve — such as Austin and Dallas — Seattle’s growing unaffordability aligns more closely with California’s expensive markets, including Los Angeles and San Francisco, where buyers must spend over 75% of their income on housing.

How did 2024 mortgage rates affect Seattle's home prices?

Mortgage Rates:

As mortgage rates averaged 6.72% in 2024, the slight dip from 2023’s 6.81% was not enough to offset Seattle’s rising home prices.

Redfin analysts expect housing prices to continue increasing in 2025 due to ongoing supply constraints, potentially worsening affordability further.

To view the full report, visit Redfin's website.

The Source: Information for this story came from a Redfin Report.

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