Housing - how do people afford it? (Seattle, Tacoma: for sale, apartments)

[littlebluedot]

I've been doing research about relocating to Seattle from the Omaha, NE. Obviously there is a huge jump in cost of living, but the costs of buying a house just seem unbelievable to me. My husband and I have a combined income of around $90k here, and honestly I would never DREAM of even looking at a house that was listed for over $200k.

When we first move, we'll definitely rent for a while, but I'm having trouble imagining how we'd ever be able to afford a house anywhere in the area. I'm assuming we'll find somewhat higher salaries there (we're both in IT with a few years of experience), but I can't even fathom being able to afford a mortgage on a $400k+ house.

Are the salaries really that much higher out there, or are there just lots of people who raise families in rentals/apartments?

Also, is it possible to find houses closer to $200k if you go to some of the less desirable (but still safe) suburbs, within an hour of the city?

[seattlenextyear]

You can do it. Our income isn't much more than yours and we just bought a $400K+ house. Though, we've been saving up for a down payment since before we got married and we don't have any children or other expenses. Some couples buy a condo first and then move to a house once they've built up equity.

People in larger cities on the coasts tend to get married later, and often don't have children until they're over 30. So there's more time to build up that initial down payment. People also don't move into their "dream house" right after their wedding.

My cousin in law in Omaha bought her house right before they got married. It was 10 bedrooms and under $100K. They're planning on staying in it, having kids, and maybe selling it when they retire. That's just...not how things work here.

[burlshoe114]

There are houses for less, but they tend to not stay on the market long, if they are listed at all. However, they are probably not going to be in the $200K or less range unless you are living in a tiny house faaaarrrrr away from the city. Expect them to be in the $350K range.
High cost of living and expensive housing is a frequent theme in Seattle. It takes two incomes, and you funnel a lot of your income into the property, property taxes, etc. How much you ultimately want to invest yourself into a home here is a personal question you will need to decide on.
Some other options to consider - Buying land and living in a manufactured home until you have saved enough to build the house you want. Buying a new construction townhome. (Those run about $270K) Just rent and not buy a home (some people have said this makes better financial sense for them in the long run).
Hope this helps a little!

[HuskyDawg]

[quote]When we first move, we'll definitely rent for a while, but I'm having trouble imagining how we'd ever be able to afford a house anywhere in the area. I'm assuming we'll find somewhat higher salaries there (we're both in IT with a few years of experience), but I can't even fathom being able to afford a mortgage on a $400k+ house.[/]

We adjust what we spend here and some of our friends are the same. We spend more on the mortgage than we would in some other cities, but less on new expensive cars etc... We'd have more 'toys' if we lived somewhere else and didn't have the mortgage and high cost of childcare that comes with Seattle. But the quality life is worth it.

[Ira500]

Is it possible to find a 200,000 dollar house in a less desirable but still safe town/neighborhood, within an hour of Seattle?
Actually, yes, but the vast majority of them need extensive work and/or are very small. There are houses for under 200,000 dollars in Tukwila, Boulevard Park, White Center, Skyway, Everett, and Tacoma, all within an hour of Seattle. For example, there's a kind of cute older home in Skyway currently for sale on a quiet street for 199,000, but it's about 800 square feet.
But realistically, a house in any of those areas that's either a little bigger or in decent shape is going to run 250+. In any of those areas, you can find a pretty good selection of nicely renovated older homes( 3 bedroom, 1 and 3/4 bath or more) with decent garden space for 270-315 thousand dollars. Condos and townhomes will be less.

[caravan]

My dad lives in Everett, which is definitely within an hour from Seattle (depending on traffic), and he bought two houses in the last fewuears that were way under 200k. He put thousands of hours of sweat equity into both of them, basically gutted and remodeled frrom the studs out, and would be very interested in either selling or leasing-to-own to someone looking for a good quality home in a cheaper area. He is a few minutes' from I-5, which is very convenient--shoot me a DM if you're at all interested!

That said, my husband and I have been renting in a fabulous neighborhood for the last year (Greenlake, 2bd/1ba apartment with basically free utilities) and paying $1275 (incldg. parking, a big deal in Seattle). We really enjoyed having the time to look for a house, and if we hadn't found one that we liked so much (bought last week!), we would have been quite happy continuing to rent here for a while. But if you don't want to be in an apartment, I highly recommend looking north of Seattle to Everett or anywhere in that area. There are a lot of suburban developments in Mill Creek, for example (30 mins from Seattle) that are dying to sell at lower prices right now... might not be under 200k, but not as high as 400k, either.

[littlebluedot]

Great info, thank you all very much for the replies! I think it really will come down to us just making the move and then deciding if having so much more of our income going toward housing will be worth living in (or near) what seems to be such a great city.

[ElektroDragon]

Originally Posted by littlebluedot

I've been doing research about relocating to Seattle from the Omaha, NE. Obviously there is a huge jump in cost of living, but the costs of buying a house just seem unbelievable to me. My husband and I have a combined income of around $90k here, and honestly I would never DREAM of even looking at a house that was listed for over $200k.

Now wait a minute, we earn less than that ($80K) with only one income, and yet we just bought a house last year in the low $300K range in Bothell. I don't understand why you think you can't afford a $300K+ house on a $90K salary. It is definitely doable with current interest rates. Also got on one of the best school districts in the area.

[burlshoe114]

Originally Posted by ElektroDragon

Now wait a minute, we earn less than that ($80K) with only one income, and yet we just bought a house last year in the low $300K range in Bothell. I don't understand why you think you can't afford a $300K+ house on a $90K salary. It is definitely doable with current interest rates. Also got on one of the best school districts in the area.

But that is what we are saying - A household income around 100K should be a good range to lead a comfortable, middle class, homeowning life in Seattle.
(90K is pretty close to 100K)

[littlebluedot]

Originally Posted by ElektroDragon

Now wait a minute, we earn less than that ($80K) with only one income, and yet we just bought a house last year in the low $300K range in Bothell. I don't understand why you think you can't afford a $300K+ house on a $90K salary. It is definitely doable with current interest rates. Also got on one of the best school districts in the area.

I guess I don't fully understand either. I need to get on my budget and figure out where all our money is going...I'm just glad to hear that plenty of people do it successfully, it is very encouraging!