All over the country, home purchasing and rental prices are rising. The cost of living is rising quicker than wages and we are experiencing insanely competitive markets in the rental and purchasing sectors. There are numerous principles floating around to examine how much of your income should be divided up for housing. Smart Assets’s recently did an analysis on what income level is needed to pay for housing in 15 major US cities. Smart Assets used a 28% rent-to-income ratio to determine the salary needed to afford housing in each city. Although Seattle is experiencing both rental price increase as well as job growth, they aren’t quite on a level playing field of averages.
Seattle didn’t quite crack the top 5 on the list and lands at number 6 with an income of $98,271 needed to afford rent within the city. Residents of Seattle earn a median household income of $67,365, which is clearly less than the needed income to afford housing using a 28% rent-to-income ratio. This trend shows that affordable housing is out of reach for most residents and they are either pinching from savings or living more of a pay check to pay check lifestyle. A few months ago we looked and rental rates rising around the country and found that rent is rising in Seattle quicker than any other city in the United States!
Median Monthly Rent in Seattle
2016 – $2031
2015 – $1852
2012 – $1575
A few months ago we looked at stats from GoBankingRates.com to figure out how much money you need to live comfortably in Seattle. The numbers that came up were an annual income of $72,092 utilizing 50% for necessities, 30% for discretionary spending, and 20% for savings. This figure is slightly different than the data we analyzed today but never the less follows the same principles.
As always, if you are looking for a rental or doing an online Seattle home search, let us know how we can make your life easier!