It’s not only Seattle: Can you afford region’s housing market? (Tacoma: sale)

[CrazyDonkey]

Housing affordability in Olympia-Seattle corridor slips as wages fall behind home price gains | The News Tribune

▪ In Pierce County, it costs 43.3 percent of the median wage of $49,500 to pay for a median-priced home of $258,750. Home prices here increased by 8 percent over the previous year, with a 6 percent year-over-year increase in median resident wages.

▪ Thurston County fares a little better than Pierce County, with 42 percent of the median wage of nearly $50,000 going toward home payments on a median dwelling of $249,900. There, home prices have increased by 6 percent while wages increased 3 percent.

▪ In King County, it costs nearly 48 percent of the median wage to pay for a home. However, wage growth is outpacing the median home price, the data show. In the first quarter of this year, the median home sale price was $454,000, a 7 percent increase from a year ago, while the median wage was more than $82,000 per year, an 8 percent increase.

A good rule of thumb, Rumpf said, is to not exceed 45 percent of your gross income to pay debts.
“That’s total debts, not just housing,” he said.

Ever-escalating rent costs combined with high debts mean younger people have less money to save for a down payment for their first home.

The oldest millenials have an average of $18,271 in student loan debt, according to College Investor, with an average net worth of $20,236.

Bankrate.com said last month that Washington is the 15th-worst state for millenials to buy a home. Here, only 3.8 percent of millenials are homeowners, the website said.

[Flightoficarus87]

It's definitely not just Seattle/the Eastside where COL is going up. Just look at how much rents have increased in Tacoma in recent years (especially the north end).

[macabhaird]

Being in my late 60's on SS & pension I'd like to relocate to Seattle - my father was born there (1914 - graduated from QA High school - class of '31), my two siblings and their families are there, as is my youngest son and his family. The 3x hike in real estate is bad enough but doable. But so far the deal killer is the property tax on 3x the cost of real estate. So unless I find a way to beat this system, instead of strolling down Alki beach I'll just hole up, debt free, in my cheap (paid for) Central California house.

[mhays25]

Most buyers are in the top 2/3 or so of the wage spectrum, and they often have multiple wages. Median wage isn't terribly relevant. We're expensive, but context is important.

Property tax isn't much...mine is less than 1%.