Washington Housing Costs Are Skyrocketing

The Dividend Investing Dad

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Across the board, Washington state is becoming one of the most expensive states to buy a house. Housing costs continue to climb and not only in the Seattle area. Spokane, the Tri-Cities, and Vancouver continue to see prices jump.

From 2015 to 2020 alone, there was a 36% increase in housing costs. From 2020 to the present, the growth has jumped 25% in just this time alone. Again, this isn't just the Seattle area.

Spokane, Washington, has seen a 40% increase from 2019 to 2022, which will likely continue to go up. Kennewick, Washington, has had a 25% increase in just one year! The point is that housing costs are going up everywhere.

Washington State Compared to the Other States

Washington ranks higher than most states in the United States for housing costs and many other costs. Washington state is #13 on the cost of living index, #10 for grocery prices, #15 for housing prices, and #4 for transportation costs. The average salary across all jobs in Washington comes in at $69,000.00, which is a gross misrepresentation for the average person in the state.

Even with the high average wage, being in the top 15 states for most costs can cost the average citizen of Washington. Is it worth staying in Washington when everything is so high? Can the average person own a home?

Why are housing costs so high?

Housing costs appear to be so high because of the influx of people moving into cities like Spokane and the Tri-Cities. The term "tech refugee" has been placed to the influx of people moving from Portland, San Diego, San Francisco, and Los Angeles.

Another reason is because of the enormous amount of people packing into King, Snohomish, and Pierce Counties due to jobs with Boeing, Amazon, and Microsoft. These three counties are some of the highest the state for housing prices.

What are your options if you buy a house in Washington?

The most straightforward answer to this question is to be ready to put more money on the table. If you are going to put an offer on the house, you may need to ask significantly over the asking price.

If this isn't an option for you, you may consider moving further from the city center into smaller towns. Housing costs there might be up, but there is more opportunity to purchase with less competition.

Lastly, you may want to try house hacking. Potentially, you can buy a larger house or one with the ability to rent a room or space. This will help offset your mortgage and potentially give you the freedom to get into a home you may not have been able to before.

Final Thoughts

With so many people leaving high-cost states and political environments that they disagree with, Washington state might be added to the list of states that start to see people go.

While there is currently a large influx into the state, we could see a great flood of people leaving over the next few years. This wouldn't surprise me with the way costs continue to rise.

After all, if people below the average salary amount can't pay their bills, it would make sense that they would leave for less expensive states. And while this would seem like a good thing to some, it would ultimately make the state unlivable for many, many more.

Thank you for reading this article. Please note that I am not a financial adviser or realtor. Any information provided in this article is speculation for entertainment purposes and encourages you to take further action for research and do what you can here in Washington state.

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I focus on financial situations that impact the everyday person. I am a self taught dividend investor, side hustler, a writer.

Spokane, WA
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